Employers be aware – big changes to the defined benefit pensions landscape come into force

Some of the biggest changes to the defined benefit pensions landscape in recent years come into force on 1 October 2021. Much has already been made of the provisions of the Pension Schemes Act 2021. Here is a rundown of what comes into force on 1 October (note that these provisions do not have retrospective effect):

Continue Reading Employers be aware – big changes to the defined benefit pensions landscape come into force

The Pension Schemes Act 2021 introduces a framework for a new type of pension scheme – collective money purchase schemes. Also known as collective defined contribution or CDC schemes, this type of pension scheme offers a middle path between traditional defined benefit (DB) and defined contribution (DC) schemes.

Employer and member contributions are fixed, as in a DC scheme. However, investment and longevity risks are borne collectively by the members, rather than being borne exclusively by the employer (as in a DB scheme) or exclusively by the individual member (as in a DC scheme). Members are promised a target retirement income, but this can be adjusted up or down to reflect the scheme’s investment performance and other risks as longevity experience.

The government is currently consulting on draft regulations setting out further detail of the legal framework for CDC schemes. The consultation closes on 31 August.

Continue Reading A third way – collective money purchase pension schemes

In an eagerly anticipated update, the Home Office has announced that the Covid-19 adjustment to the right to work check will no longer end on 20 June 2021 but will be extended to 1 September 2021.  Read here for our full blog post:

https://www.mobilework.law/2021/06/a-welcome-and-longer-than-expected-extension-to-the-covid-19-uk-right-to-work-check-concession/

Since March last year, due to Covid-19, the Home Office has allowed employers to check an employee’s immigration status in the UK by using scans or copies of documents instead of having to see the original documents.  From 17 May, this adjustment will cease and employers will once again be required to check original documents,

The pensions press has been abuzz with comment on the expanded range of powers given to the Pensions Regulator (“TPR“) by the Pension Schemes Act 2021 (the “Act“) which are expected to come into force in Autumn 2021.  These include imprisonment or unlimited fines for some offences, civil penalties of up to £1 million and enhanced information gathering powers with penalties for non-compliance.

Continue Reading New powers for the Pensions Regulator – should employers be concerned?

In March 2021 the Financial Conduct Authority (“FCA”) produced an updated joint guide for employers and trustees on providing financial support to employees and members. The guidance is an updated version of a document published in October 2020. The updated guidance will be particularly useful for employers that provide in-house pensions administration services.

Continue Reading Supporting employees with financial matters

The government has set the automatic enrolment earning figures for the 2021/22 tax year as follows:

  • Earnings trigger: £10,000
  • Qualifying earnings band: £6,240 – £50,270

The earnings trigger is the level of earnings that a jobholder must receive in order to be eligible for automatic enrolment. The level of the earnings trigger has remained unchanged