As I mentioned in my last update note, we are working closely with HMRC colleagues on the implementation of Single Tier Pension. HMRC are creating the Scheme Reconciliation Service as part of the implementation. This Service allows pension scheme administrators and trustees to reconcile the membership and Guaranteed Minimum Pension (GMP) data held on scheme records against HM Revenue & Customs' (HMRC) records in advance of the ending of contracting-out in April 2016. The service provides a list of contracted out periods and GMP data for members who have left contracted-out employment. This includes early leavers, pensioners, widows, widowers and surviving civil partners. The service will be available from April 2014; however, requests for data can be made now. This link provides further details of the service.
Defined Ambition legislation expected in 2015
25 February 2014
Legislation for defined ambition (DA) pension schemes is expected to reach Parliament in 2015, allowing the necessary changes to take effect before contracting-out ends in 2016.
A consultation ‘Reshaping workplace pensions for future generations’ was published in November which looks to provide a way forward towards both reforming and reinvigorating workplace pensions. The Defined Ambition Industry Working Group was set up in the summer of 2012 to look at the market gap in relation to affordable pension guarantees and to provide the products consumers are seeking. Over the year this Group held extensive discussions with a wide range of providers and employers and the proposals contained within this consultation provide a way forward towards both reshaping and reinvigorating workplace pensions. They offer a range of new options that will be attractive to different employers and their employees – all part of a new framework that looks beyond the current regulatory extremes of defined benefit and defined contribution. According to a report by Professional Pensions a spokesman for the Department for Work and Pensions (DWP) said there was no firm timeline to publish a response to the consultation, but it will be made public “in due course" and “This will require some sort of legislative vehicle. We would be looking to see if this is in the Queens' Speech; if it is, we would expect this to be a bill in the next parliamentary session."
Government requires providers to disclose all hidden pension charges
5 March 2014
The Department for Work and Pensions has tabled an amendment to the Pensions Bill to require pension providers to disclose all transaction costs in defined contribution workplace pensions. This extra information will enable those running defined contribution schemes to see exactly how much they are paying for asset management services to get the best value for scheme members, who will also benefit from greater transparency.
The reform is the latest part of the government’s drive to bring greater fairness and transparency to pension costs.
Minister for Pensions Steve Webb said:
“We’re taking action to ensure consumers have access to good quality pension schemes so they have the confidence to plan for their futures. For the first time, we are shining a light into
CIPP Policy News Journal
16/04/2014, Page 445 of 519
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