robust evidence base to assess whether self-regulation is working and continues to be appropriate for schemes being used for auto-enrolment."
The threats come after pensions minister Steve Webb last week reiterated his intention to crack down on "dodgy" AE schemes (PP Online 14 November) . The DWP said it will not impose a blanket cap on charges, as proposed by Labour leader Ed Miliband (PP Online 1 October) as it believes fees are naturally falling and that the work of bodies such as the National Association of Pension Funds is helping to improve transparency. It also said the National Employment Savings Trust (NEST), with its strict low-charge policy, is already spurring other providers to reduce charges in order to compete for auto-enrolment business. It said: "The department welcomes the initiative by the NAPF to develop an industry ‘Code of Conduct' to disclose information about charges to employers (PP Online 16 May) and the proposals from the Association of British Insurers for the industry to provide clearer information on charges and costs to consumers (PP Online 7 November) ."
AUTOMATIC ENROLMENT EARNINGS THRESHOLDS REVIEW AND REVISION 2013/14
14 December 2012
The government has recommended that the earnings trigger and qualifying earnings band for 2013/14 be aligned with payroll thresholds.
In the government’s response to the consultation on revision proposals for the automatic enrolment earnings trigger and the qualifying earnings band, they have proposed to lay a draft Revision Order before Parliament in the New Year which specifies the following rates:
£9,440 for the automatic enrolment earnings trigger; £5,668 for the lower limit of the qualifying earnings band; £41,450 for the upper limit of the qualifying earnings band.
The Order will require approval from both Houses before the regulations can be made. The intended coming into force date is 6th April 2013.
The government has stated in their response that these proposals do not necessarily mean that the automatic enrolment figures will be aligned with thresholds in future years so there will still be a mandatory annual review rather than a pre-determined strategy.
DWP TO SHUT AUTOMATIC ENROLMENT LOOPHOLE
20 December 2012
The Department for Work and Pensions is to close a loophole in automatic enrolment legislation which would have allowed employers using the defined contribution sections of hybrid schemes to defer enrolling until 2017. The Department for Work and Pensions (DWP) is to close a loophole in automatic enrolment legislation which would have allowed employers using the defined contribution sections of hybrid schemes to defer enrolling until 2017.
Professional Pensions reports:
Had it been left unchanged, the loophole could have affected four million workers, according to estimates. The loophole would have allowed employers with hybrid schemes with closed
CIPP Policy News Journal
12/04/2013, Page 254 of 362
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