Archive for the ‘Legislation’ Category
Call for single pension regulator
The Work & Pensions Committee have called on the government to reassess the case for establishing one body with sole responsibility for regulating workplace pensions.
The Report calls on the Government to reassess the case for establishing one body with sole responsibility for regulating workplace pensions.
Noting concerns over current gaps in regulation and the potential for further gaps to arise as a result of now having three regulators with a role to play, the Report argues that a single regulator is necessary to ensure that all members of workplace pension schemes are adequately and consistently protected.
Comment
The Work & Pensions Committee is simply echoing what those in the pensions industry have been saying for some time. The distinction between the regulation of company pension schemes and contract based plans has been a source of concern for many.
If the Coalition Government is serious about reducing red tape here is great opportunity!
Steve Clark
Chaos warning over real-time PAYE
The Sunday Telegraph has warned that businesses face a nightmare of red tape following the introduction of Real Time Information for PAYE.
Though the scheme will not apply to smaller companies until the autumn, tax experts believe the complex system required to handle real-time data for employers will result in chaos.
The Sunday Telegraph claimed that many employees in receipt of benefits would have any Christmas bonus clawed back by reductions in tax credits or benefits in the same pay packet.
Up to a quarter of smaller firms are not even aware of the introduction of the scheme.
Steve Clark
Changes to auto-enrolment rules?
The Government is consulting on changes to the auto-enrolment regulations.
Fear not, there are no big changes. The Government is just responding to
issues identified in feedback received since some of the largest employers began enrolling employees last year.
The changes include
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Making it easier for employers to use existing payroll processes to determine whether workers need to be auto-enrolled and for assessing whether existing schemes are qualifying schemes.
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Turning off the employer duty to auto-enrol where a worker has recently opted out of pension saving before they were automatically enrolled (e.g. where an employer makes joining the pension scheme a condition of the contract of employment).
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Confirming that opt-out notices need not be identical to the form specified in regulations.
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Extending the joining window deadline from one month to six weeks.
The Government is looking to make these changes in April 2014. As always…….watch this space.
Steve Clark
Automatic Enrolment Earnings Triggers
In case you didn’t see it amongst all the furore about Boris Johnson’s interview with my old school mate Eddie Mair; the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band)Order 2013 – SI 2013/667, was recently laid before Parliament. This comes into force on 6 April 2013.
The earnings thresholds for 2013/14 are as follows:
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Automatic enrolment eligibility earnings trigger £9,440
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Lower qualifying earnings band limit £5,668
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Upper qualifying earnings band limit £41,450
We’ll be discussing these with 44 Financial clients (if they impact on you at our next pension reform meeting. If you are not already one of our clients and all this is news to you – give us a call on 0116 260 5443 to book an initial consultation at our cost.
If, on the other hand, you want to see Boris Johnson squirm see the BBC interview here.
Steve Clark
Employment Law – what changes in 2013 and beyond
We are grateful to those all round good eggs (after all it is Easter soon) at Wragge & Co for publishing a snapshot of the employment reforms that are on the horizon.
Click here to see the snapshot.
Steve Clark