Previously published guidance detailed how trustees of Defined Benefit (DB) schemes may opt to delay new member requests for transfer quotations by up to a maximum of three months, but TPR has confirmed that this isn’t the case for switches between DC schemes as the valuation of benefits is far less complicated. It is important for trustees to process switches as soon as possible, because if member’s pension switches are delayed, and their investments fall in value during that crucial period, then the member’s cash equivalent transfer value will be lower. Trustees must still ensure that they carry out the required due diligence prior to any switches.
TPR also reminds trustees that they should be monitoring all pension switching activity and remain particularly alert and wary of potential scams, as fraudulent activity has increased significantly throughout the COVID-19 crisis.
TPR’s executive director of policy, David Fairs, said:
“The Covid-19 pandemic has created unprecedented challenges for pension schemes and their members. That’s why we’ve been constantly reviewing and updating our guidance to support trustees and protect savers.
Our latest guidance should help trustees of DC schemes prioritise what’s most important – such as ensuring DC to DC transfers are completed in a reasonable time, so savers don’t lose out."
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Recognised overseas pension schemes notification list 18 May 2020
The list of Recognised Overseas Pensions Schemes (ROPS) notifications has been updated.
The list is of schemes that have told HMRC they meet the conditions to be a ROPS and have asked to be included on the list.
There have been ten scheme names added to the list, and none have been removed. No amendments have been cited in this update.
A very welcome change is that HMRC now list the updates, as follows.
Schemes added
Australia
Elaroo Superannuation Fund Harpenden Hargrove Super Fund Hewitt Super Fund Langstone Super Fund MKA Superfund Newman Family Super Fund Shooter Retirement Fund Smith9320 SMSF Wood Family Super Fund
Belgium
Instelling voor bedrijfspensioenvoorziening Dow Belgie
An updated list of ROPS notifications is published on the first and 15th day of each month. If this date falls on a weekend or UK public holiday the list will be published on the next working day. Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected.
The requirements to be a ROPS changed from 6 April 2017 - find out about the changes for ROPS requirements.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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