To get ready for the onset of the employer duties and safeguards, anyone considering employing a worker for the first time on or after 2 April 2017 should:
understand their duties start date do an initial assessment of the worker or workers’ likely age and earnings on or before the duties start date. put a pension scheme in place if the initial assessment identifies that the worker will meet the eligible jobholder criteria get information ready set up payroll processes and software if needed decide whether to use postponement at the duties start date be ready to handle opt ins if needed keep records.
Read more about automatic enrolment and new employers under Section 2 of this guidance from The Pensions Regulator.
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New duties for master trust pension schemes 24 May 2017
The Pension Schemes Act 2017 places new duties on those involved with running master trust pension schemes.
This includes an immediate duty to report certain events known as ‘triggering events’, to The Pensions Regulator and to not increase charges for scheme members as a result of these events. These duties take retrospective effect from 20 October 2016.
Failing to comply with the duties may result in a penalty of up to £5,000 for an individual and £50,000 in any other case.
The Pension Schemes Act 2017 also introduces measures for authorising and supervising master trusts and new powers for The Pensions Regulator. Authorisation will start after regulations have been developed.
The Pensions Regulator expects those involved with running master trusts to understand how the 2017 Act affects their scheme now, and to start making preparations for the future.
A list of triggering events and who must report them can be found on The Pension Regulator's website.
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British Airways loses High Court battle over discretionary increase 23 May 2017
British Airways (BA) has lost a landmark trial to block its pension trustees' decision to award a discretionary increase in 2013.
Professional Pensions reports on the seven week battle towards the end of 2016, where the trustees of the Airways Pension Scheme (APS) were taken to the High Court to defend a 0.2% discretionary increase - above the rate of the Consumer Prices Index (CPI) - to members in the 2013/14 year. The decision had been made after the scheme was moved from the Retail Prices Index (RPI) in 2011 - as it was linked to the Treasury's Pension Increase Review Orders - and a recovery plan had also been agreed based on RPI in 2010, and then again in 2013. BA alleged the APS trustees did not have the power to award an increase, especially while the scheme was in deficit, had ignored advice and put pressure on advisers to change recommendations, and given "gratuitous" and "unearned" benefits.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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