White said. "This can buy time but creates - or adds to - a deficit while the business tries to trade its way out of trouble."
"The latest increase does raise real concerns. A proportion of this increase can be put down to the increase profile and vigilance of the regulator and improved compliance by industry – and particularly the insurance companies administering the schemes. However, those factors alone do not sufficiently explain the trend," he said. The number of late payment reports the regulator received from pension scheme trustees rose from 6,787 in 2011 to 9,172 in 2012, according to the figures. According to Pinsent Masons, this is the highest number of late payment notifications received by the regulator in five years; higher even than the number of delayed employer contributions at the height of the financial crisis. The Pensions Regulator has the power to impose penalties or even criminal sanctions on companies that do not pay pension scheme contributions in time. Guidance on funding defined benefit (DB) pension schemes in the current economic climate, published by the regulator in April, indicated that companies should carry on funding schemes in accordance with plans already in place unless there had been a "change in an employer's ability to pay".
AUTOMATIC TRANSFERS: CONSOLIDATING PENSION SAVINGS
24 April 2013
Plans have been announced that aim to help employees take their workplace pension with them when they change job.
Introducing automatic transfers is projected to reduce the proportion of people reaching retirement with five or more dormant pots from a quarter to one in thirty.
The proposal will be included in the forthcoming Pensions Bill.
Minister for Pensions Steve Webb said:
“Instead of having lots of small pension pots all over the place, we want people to have a “big fat pot” which will buy them a better pension. When people change job, they often leave behind a pension pot which becomes forgotten and which can even attract higher charges once they leave the firm.” “We want to make it the norm that when you move job your pension rights can move with you if you wish. This will reduce the costs of providing pensions and will help people to be much more engaged with their pension savings.”
Initially transfers will only be for money purchase schemes. Those in defined benefit occupational pension schemes will not be included at this stage.
Pension scheme providers and administrators will operate the transfer but individuals will be provided with information and have the right to opt out of the process.
Full details of the proposals can be read Automatic transfers: consolidating pension savings
MULTIPLE REGULATORS RISK CREATING GAPS IN GOVERNANCE STANDARDS
26 April 2013
The Work & Pensions Committee have called on the government to reassess the case for establishing one body with sole responsibility for regulating workplace pensions.
CIPP Policy News Journal
16/04/2014, Page 419 of 519
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