PAYROLL NEWS
PAYROLL news
TPR authorises UK’s first CDC pension scheme THE PENSIONS Regulator (TPR) has assessed and authorised the UK’s first collective defined contribution (CDC) pension scheme. CDC schemes provide a new alternative to traditional defined benefit (DB) and defined contribution (DC) pension schemes. In CDC schemes, member and employer contributions are pooled in a collective fund from which an aspired to pension income for life is drawn. Currently, CDC schemes can be set up by single employers, for that employer only, or for employers in the same group of companies. TPR states: ‘‘The authorisation is a milestone for TPR and shows how the regulator is pursuing its strategy to embrace innovation to help meet pension savers’ needs. The pooling of longevity and investment risks makes CDC schemes more resilient to market shocks. In addition, unlike DB schemes, the pension benefits are not guaranteed in CDC schemes, so they provide employers with predictable costs. External modelling suggests that they can also provide, on average, better returns for members than traditional DC schemes.’” The following pension schemes have been granted CDC authorisation: l Royal Mail collective pension plan. Minister for Pensions, Laura Trott, said: “TPR authorising the first CDC scheme is a landmark moment, and this is just the beginning. We have seen the positive effect of these schemes in other countries and our plans to extend our CDC framework will enable more pensioner savers to achieve the retirements they want.” The Pension Schemes Act 2021 introduces new duties for those involved in running pension schemes. It also gives TPR powers to protect pension scheme members and the Pension Protection Fund. The Act introduced an authorisation and supervision regime for CDC schemes. Schemes must show they meet strict criteria including that those who run the scheme meet fitness and propriety requirements, have the right systems and processes in place, can show the scheme is financially sustainable and have robust member communications. TPR has powers to intervene when necessary. More information on CDC schemes is available here: http://ow.ly/ blES50NLK9P.
National living and minimum wage 2023 campaign THE DEPARTMENT for Business and Trade, along with other government departments and external stakeholders, is running a campaign to raise awareness of increases to the national minimum wage (NMW) and national living wage (NLW) that took place in April. This is to encourage workers to check their pay and ensure they’re receiving the pay they’re entitled to. The campaign aims to educate workers regarding their entitlement and advise what to do when they’re not being paid the correct amount. It also involves ensuring employers meet their legal responsibilities and are aware of where they can go to for help or advice on paying workers correctly. More information can be found here: http://ow.ly/v2Ro50NLLSP. Payments around May bank holidays BUSINESSES SHOULD plan their payments ahead of the three bank holidays in May to avoid disruption to staff and suppliers. Pay UK, which is responsible for Bacs Direct Credits and Direct Debits, is urging organisations to ensure they have the most up to date processing calendar available, so they don’t miss or delay important payments. Bank holidays are Bacs non-processing days, so organisations are advised to factor these into their scheduling and take advantage of the ability to submit payment files in advance. There are three bank holidays in May, including an extra one this year on 8 May, to mark the coronation of King Charles III. This will be in addition to the usual early May and spring bank holidays on 1 and 29 of the month. This means that the latest submission dates for payments due to be credited ahead of these non-processing days will be 26 April, and 3 and 24 May, respectively. To help businesses plan in advance, Pay.UK has produced an updated 2023 processing calendar (http://ow.ly/pyLA50NLJp8), reflecting the additional bank holiday for the coronation - which lists all the non-processing days for the rest of the year, together with latest payment submission dates.
Diary dates
5 June
Last day of tax month 2
6 June
First day of tax month 3
Last day for submitting a real time information employer payment summary to apply to tax month 2 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 May
22 May
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
31 May
Employees on payroll as of 5 April 2023 need to receive their P60 by this date
5 July 6 July
First day of tax month 3 First day of tax month 4
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 10
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