Over the past six months HMRC has received a number of requests to clarify their technical understanding of the contribution of assets to registered pension schemes. This method has become known as making an in specie contribution. The first article in the latest newsletter summarises HMRC’s view on the legislation and guidance. Scottish rate of Income Tax HMRC has received a number of queries from pension scheme administrators about the Scottish rate of Income Tax and how this affects registered pension schemes operating relief at source. They are planning to publish a newsletter on this subject in early May to update you on their work and progress to date including:
implementation timelines technical specifications
information on the enrolment process onto Secure Data Exchange Service information on the output that scheme administrators can expect from HMRC.
The newsletter is published by HMRC’s Pension Schemes Services to update stakeholders on the latest news for pension schemes. Topics also covered in this newsletter are:
Registration statistics Relief at source Lump sum death benefits – information requirements Pension flexibility statistics Lifetime allowance Contacting Pension Schemes Services Qualifying recognised overseas pension schemes (QROPS) Annual allowance scheme pays.
Pension schemes newsletter 86 – April 2017
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The draft Occupational Pension Schemes (Employer Debt) (Amendment) Regulations 2017 26 April 2017
This consultation is mainly aimed at those administering and managing defined benefit multi-employer occupational pension schemes.
This consultation seeks views on ‘ The draft Occupational Pension Schemes (Employer Debt) (Amendment) Regulations 2017 ’.
Geographical extent - This consultation applies to England, Wales and Scotland. It is anticipated that Northern Ireland will make corresponding regulations.
The Employer Debt Regulations ( s75 Pensions Act 1995 ) are intended to provide protection for members of defined benefit pension schemes where the employer ceases to participate actively in the scheme. Employer debt is broadly the amount the employer must pay into the scheme when it ceases to participate at a time when there is a shortfall between the scheme’s assets and liabilities. In response to approaches made by a number of stakeholders with concerns about how the existing employer debt legislation operates for employers in non-associated multi-employer schemes (i.e. schemes where the participating employers are from unconnected businesses or organisations), the Department for Work and Pensions (DWP) undertook a Call for Evidence in March 2015. The majority of respondents to the Call for Evidence advocated some form of change to the employer debt regime to help employers in non-associated multi-employer pension schemes manage employer debts that arise following an employment-cessation event.
The Pensions and Lifetime Savings Association (PLSA) has welcomed the DWP consultation. Joe Dabrowski, Head of Investment and Governance, Pensions and Lifetime Savings Association, said:
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