CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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The Pensions Regulator is set to accept Collective Defined Contribution applications from August

Published: 15 June 2022 Emailed: 15 June 2022

The Pensions Regulator (TPR) has laid before parliament a code of conduct for Collective Defined Contribution (CDC) pensions. This will allow time for the legislative process, with the expected date applications can be made being 1 August 2022. The code will expand on the regulations that received royal assent in February 2021 under The Pensions Schemes Act 2021. The act gives TPR the powers to intervene where required for schemes not “built on sound foundations”. On the same date (9 June 2022), TPR released its response to the consultation seeking views on the proposed code of conduct. This document indicates that many respondents question if the code is proportionate for smaller schemes, such as those for a single employer. The level of detail included could make the process ‘onerous’ for all but larger multi-employer schemes. Other feedback indicates a need for more useful guidance as the regime expands. Initially, CDC schemes will only be an option to single employers, or two or more connected employers. The Pensions Schemes Act 2021 allows for this to be expanded later.

TPR’s executive director of regulatory policy, David Fairs, Said:

“Laying our CDC code in parliament is a significant step as we prepare for a new type of scheme that paves the way for an alternative and innovative pension saving solution to traditional defined benefit and defined contribution arrangements. “Our focus is on protecting savers, and while the code now clarifies a number of points raised during our consultation to explain how it reflects legislation, it continues to set the right bar for the authorisation and supervision of CDC schemes.”

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The Pensions Regulator outlines its 2022 to 2024 Corporate Plans Published: 20 June 2022 Emailed: 22 June 2022

The Pensions Regulator (TPR) has set out plans for 2022 to 2024 in its Corporate Plan, released 13 June 2022. This updates and builds upon the 2021 to 2024 plan published last year.

The plan outlines how TPR will develop and manage its workforce to meets its aims and objectives. Continuing to work closely with the Department for Work and Pensions (DWP) and Financial Conduct Authority (FCA) to protect pension savers and combat pension scams.

TPR’s five strategic priorities are:

security

• • • • •

value for money

scrutiny of decision making

embracing innovation

bold and effective regulation

Also mentioned in the plan are consultations into the Value for Money Framework, Defined Contribution (DC) pension schemes and Collective Defined Contributions (CDC) pension schemes. The Value for Money Framework consultation is to be launched later this year along with FCA and DWP. A second Defined Benefit (DB) funding code consultation is also due to be undertaken.

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Aon’s 2022 DC Pension Scheme and Financial Wellbeing Survey insights

cipp.org.uk

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