have been agreed in principle between the company and the BSPS trustee. These appear to be in line with our published principles.
However, there are still important details to be finalised before we are in a position to approve the RAA and we are considering these carefully in light of their impact upon the 130,000 pension scheme members and PPF levy payers.
Pension restructurings which involve an RAA are rare, and we will only approve an RAA where stringent tests are met, so that they are not abused by employers seeking to inappropriately offload their pension liabilities.
We also continue to work with TSUK and the trustee in respect of the proposal to offer members an option to transfer to a new scheme sponsored by TSUK, which may occur should the approval to the RAA be granted, or stay in the BSPS and receive PPF compensation. The successor scheme would be subject to qualifying conditions.”
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Have your DB scheme clients used the transitional period for auto enrolment? 22 May 2017
The transitional period for DB (defined benefit) schemes is ending on 30 September. The Pensions Regulator has published new guidance detailing what your clients will need to do.
Pension schemes with defined benefits are mainly used by large employers and some employers in the public sector, and are sometimes also known as 'final salary' or 'career average' schemes. The transitional period applies to staff who are entitled to join a workplace pension scheme with defined benefits. When the transitional period ends, workers that were covered by it must be assessed and put into the pension scheme with defined benefits if they need to be automatically enrolled.
Some employers may also have chosen to apply the transitional period to staff who were already in their pension scheme with defined benefits on their staging date.
If your client is unsure whether they used the transitional period, they can check: their payroll software their staff records to see the letters they wrote to staff telling them they were applying the transitional period to these workers the acknowledgement of their declaration of compliance that we sent out to them.
If your clients have applied the transitional period, they will need to take action to comply with the law. Read the new guidance on TPR’s website to find out what they will need to do, and when.
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When is a newly-merged company a ‘new employer’ for auto enrolment? 23 May 2017
If your clients are undergoing a merger, it’s important to understand how they should be treated for the purposes of automatic enrolment.
If they merge after 1 April 2012, but both employers remain as a legal entity in their own right and remain the employer for their respective workers, their staging dates will be the same as they were before the merger.
But if a new company is created as a result of the merger, they will be treated as a new employer and will therefore have immediate automatic enrolment duties.
The employer duties and safeguards will start to apply to an employer who becomes an employer on or after 2 April 2017 and does not have a PAYE scheme, irrespective of whether they pay PAYE income or not and an employer who first pays PAYE income to any worker on or after 1 October 2017.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 132 of 145
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