In the light of Covid-19, the government is considering the publication of this and other government documents on a case by case basis, taking into account the impact of Covid-19 on stakeholders.”
The net pay anomaly unfortunately means that lower earners aren’t receiving the 20% boost on their pension contributions that they would receive if the pension scheme they saved into was operated on a relief-at source basis. It appears that only a small amount of companies use relief-at-source pension schemes, and the majority of businesses actually use net pay arrangement schemes, so the problem is a widespread one.
In the manifesto for the 2019 general election, the Conservative Party promised to fix this problem, and at Budget the government reiterated that it was “committed to reviewing options for addressing these differences.”
We await further details of when the call for evidence is due to be published and will advise members via News Online once this happens.
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The Pensions Regulator : Stakeholder update 7 July 2020
The Pensions Regulator (TPR) has released a new stakeholder update, to provide the latest communications, guidance, and news.
A new ScamSmart campaign has been launched by TPR, in conjunction with the Financial Conduct Authority (FCA), and its aim is to ensure that people are alert to scams, as there are certain individuals who are using the disruption caused by coronavirus as an opportunity to target the vulnerable. The pension scams campaign reminds savers to be extra vigilant and to be alert to the warning signs of scams. TPR has also published its Corporate plan, which outlines its priorities for the coming year. The plan has been adjusted to account for how the pandemic has altered the pensions landscape but still retains TPR’s commitment to a clear, quick and tough approach. The Annual Funding Statement Analysis 2020 has been published which confirms the expected positions of Defined Benefit (DB) pension schemes, and valuation dates between 22 September 2019 and 21 September 2020. There are some key messages within the Annual Funding Statement that trustees and employers should understand in terms of what TPR expects of them, and there is an infographic to highlight them.
There have also been updates to the guidance for ‘gated’ funds which advises of the processes to be followed once gated funds re-open.
There is a reminder that TPR works to continuously update its COVID-19 guidance hub, so this should be frequently revisited.
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The Financial Conduct Authority (FCA) – Consultation on pensions, comparing the value of money of pension products and services for members 13 July 2020
The Financial Conduct Authority (FCA) are consulting on how Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs) compare the value for money (VfM) of pension products and services and promote the best value for pension scheme members.
The FCA want to make it simpler for Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs) to compare the value for money (VfM) of pension products and services.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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