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• Reforms to the charge caps and what schemes can invest in • Seeking feedback on small pots • Extending Collective Defined Contribution (CDC) schemes to allow multi-employer funds to be operated.
To support this, DWP has opened 3 consultations, each open from 30 January to 27 March 2023:
The value for Money consultation The Small Pots Call for Evidence The Collective Defined Contributions (CDC) consultation
Alongside the opening of these consultations, broadening the investment opportunities of defined contribution pension schemes consultation government response has been published. A report titled “ Understanding member engagement with workplace pensions ” has also been released.
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The retirement calculator goes live Published: 24 February 2023 Emailed: 1 March 2023
The retirement calculator is now live for 12 different organisations. Pensions experts developed the platform following the McCloud legal ruling. The judgment means that some public service pension scheme members will have to make a choice between the benefits provided by two different schemes (legacy and reformed schemes). The calculator has been developed by the Government Actuary’ s Department (GAD) and helps members to choose which scheme benefits are better for them. It also allows members to compare these benefits using different retirement options, such as early or late retirement, or exchanging pension for a cash lump sum. The platform lets the users to immediately see and explore the impact of their choices.
The platform is live for clients including:
police (England and Wales)
• • •
four unfunded pension schemes in Scotland
civil service (Great Britain).
GAD has said:
‘‘The GAD team has been further developing the retirement calculator to allow scheme administrators to seamlessly link it to their member data. A bespoke platform will allow members to access all communications relating to their McCloud decision, through a single login.’’
‘‘ GAD continues to support our public service pension scheme clients by also using our skills to develop other calculators for clients not affected by remedy. ’’
You can read the full article here.
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Pensions: government backs bill Published: 6 March 2023 Emailed: 8 March 2023
The Department for Work and Pensions (DWP) supports the proposal to expand automatic enrolment which will enable many people to save more and to start saving earlier. This will have a great impact on pension savings for young people and low earners.
The Private Members' Bill permits two extensions to automatic enrolment – abolishing the Lower Earnings Limit (LEL) for contributions and reducing the age for being automatically enrolled to 18 years old. Lowering the age at which eligible workers must be automatically enrolled into a pension scheme by employers from 22 to 18 years old, will make
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