Although this will primarily only apply to DC schemes used for AE, the long-term goal of the Government is to increase consistency across all schemes.
The intention is for these simplified statements to draw attention to several primary points of concern for savers:
•
How much money is in their pension pot
• How much money they could have at retirement • What they can do to give themselves more money in retirement
Pensions Minister, Guy Opperman said:
“For too long pensions have been shrouded in complexity and technical jargon, limiting people’s understanding of their savings and hampering their retirement planning.
Simple statements will usher in a new standard for how schemes communicate with their members – vastly improving people’s understanding and engagement with their pensions.
With more people saving for their retirement than ever before thanks to Automatic Enrolment, it’s vital they can understand what’s going on with their hard earned money and actively plan for their future.”
Back to Contents
New superfunds guidance for trustees published by The Pensions Regulator 26 October 2020
The Pensions Regulator (TPR) has published new guidance for trustees and sponsoring employers of Defined Benefit (DB) pension schemes that may be considering transferring to a DB superfund.
Back in June 2020, TPR launched its interim regime for superfunds and other new models to lay out the standards it expects. It is hoped that this regime will provide savers with confidence in superfunds should their pension be transferred into one in the future. TPR believes that superfunds can potentially provide both pension savers and employers with good outcomes, where they are well managed, but acknowledge that they are not the solution for every single scheme. Trustees and employers should review the guidance and weigh up their options, in order to ensure that they understand and can meet the regulator’s expectations when considering transferring to a superfund.
TPR’s Executive Director of Frontline Regulation, Nicola Parish, said:
“Following the launch of our interim regime for superfunds in June, we are now providing further details about our expectations of employers and trustees who may be considering the significant step of transferring to a superfund.
We know that some employers and trustees are keen to explore whether a superfund could provide another option for their DB scheme and for employers allow them to focus on future sustainability. However, while we await government legislation, we are determined to protect savers who may be moved into a superfund by rigorously assessing providers and then supervising them closely.
Trustees need to ensure they are confident a superfund is the right option for their members, the transaction meets the gateway principles and only consider using a superfund named on the TPR website.”
The regulator will continuously assess any existing superfunds against the expectations presented in its interim regime, which will include ensuring that they are well-governed, run by the correct people and backed by sufficient capital. Superfunds will only be added to the planned online list of providers once the provider has been able to, through concrete evidence, demonstrate that they meet those expectations.
Back to Contents
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 553 of 590
Made with FlippingBook - Online magazine maker