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Pension Schemes
Choosing between occupational and workplace pension schemes
Friday, July 1st, 2011DWP response to “call for evidence” warns against choosing an automatic enrolment pension scheme based on assumptions that short service rules will not be changed. On 31 January 2011, the Department for Work and Pensions (DWP) published a “call for evidence” document to explore the regulatory differences between occupational and workplace personal pensions. It considered [...]
Abolition of contracting-out for defined contribution pension schemes from 2012 now in law
Thursday, May 19th, 2011Contracting-out for money purchase pension schemes will end in April 2012. What are the payroll implications? The decision of the previous government to abolish contracting-out for defined contribution pension schemes was included in the Pension Act 2007 and the effective date of 6 April 2012 has now been brought into force by a Commencement Order. [...]
Auto-enrolment pension schemes and aggregation of earnings
Thursday, April 21st, 2011How do the auto-enrolment rules apply for employees with two or more jobs with the same employer? One of our tutors, Vince Ashall, has been investigating some of the more complex issues that arise from the statutory rules for the auto-enrolment pension schemes that start to be phased in from October 2012. One of these [...]
Consultation on the State Pension and the State Second Pension
Monday, April 11th, 2011Government proposes alternative ways of introducing a flat rate pension and a method of making future changes to the State Pension age. In a new consultation document, the Department for Work and Pensions (DWP) presents new government proposals for speeding up the process of moving to a flat-rate state pension, and introducing a statutory mechanism [...]
P11D Working Sheets, qualifying childcare, tax simplification, NEST, credit card fees, 0T legislated, SMP compensation rate, Worker Registration Scheme, P60s, and so many forum questions.
Friday, March 18th, 2011This week we are back to normal with (too) many news items. Of particular interest and importance are the two reports from the Office of Tax Simplification, which resurrect a number of proposals from earlier years, some of which may well find their way into the coming Budget. The PAYE Regulations have been updated with [...]
Contracting-out Rebates
Monday, February 14th, 2011The Government is required by law to review actuarially the National Insurance contracting-out rebates for defined benefit and defined contribution pension schemes every five years. The rates that will apply from April 2012, subject to confirmation, have been announced in a draft Statutory Instrument. The contracting-out rebates for defined benefit schemes apply to contracted-out salary [...]
Automatic enrolment: Consultation on the effect of differences between occupational and workplace pension schemes
Thursday, February 3rd, 2011The review Making automatic enrolment work, commissioned by the Department for Work and Pensions (DWP) and published in October 2010, warned that some regulatory differences between occupational and personal pensions could create “regulatory arbitrage”. The review team recommended that “Government should review as a matter of urgency the scope for regulatory arbitrage between the trust [...]
New Pensions Bill to make final changes to workplace pensions and automatic enrolment
Friday, January 21st, 2011The latest Pensions Bill was introduced in the House of Lords on 12 January. The two key areas of interest are the revised timetables for increasing the State Pension age for women to 65, and for both men and women to 66, and amendments to the existing provisions in the Pensions Act 2008 for the [...]
Questions from our forum 21/01/11
Friday, January 21st, 2011Each week we receive a number of payroll questions on our forum, and here are this week’s batch. Can you help with any answers? Forum posts: Calculating Leavers Salary We are all part time employees and we are paid on the 15th of each month in 12 equal payments. On Tuesday 23rd November, after finishing [...]
Should table letter C be used for employees over state pension age who are still contributing to a contracted-out pension scheme?
Friday, December 31st, 2010Contracted-out employment starts at age 16 and ends when the employee reaches the state pension age. The flowchart on page 3 of the CA41 NICs Tables (for Table Letters B and C) is very specific. If an employee is at or above the state pension age table letter C must be used, even if the [...]
Clarification of issues about abolition of contracting out of defined contribution pension schemes
Tuesday, December 7th, 2010From 6 April 2012, only pension schemes that contract out on a Defined Benefit (DB) basis, i.e. contracted-out salary related (COSR) schemes, will be able to contract out of the State Second Pension. Abolition of contracting-out applies only to schemes that are currently contracted out on a Defined Contribution (DC) basis, i.e. contracted-out money purchase [...]
