Scots will go to the polls in 2014 on the question of independence. I confess I am not neutral in the debate being a Scot living in London (but don’t however have a vote!) but it did get me thinking about what a “yes” would mean for UK pension schemes, and in particular those defined benefit schemes using asset-backed contribution structures as part of their funding arrangements. (more…)
Archive for the ‘Current hot topics’ Category
We’ve looked at some of the ways that contractual enrolment into pension saving is different from auto-enrolment (see Helen Powell’s post, Enrolling into pension saving: do you know your AE from your CE?) As the regime rolls into action, we are starting to come across areas where the interaction of contractual enrolment with information requirements under the auto-enrolment legislation can create practical problems for employers, and potentially end up baffling members.
“You like to-may-to, I like to-mah-to”; you say auto-enrolment, I say contractual enrolment. Unfortunately, we can’t call the whole thing off. The pensions auto-enrolment regime is logistically quite complex. Many employers are finding it easier, for a variety of reasons, to arrange things so that their workers are already members of a suitable pension arrangement when they reach their automatic enrolment date. This may well make good practical sense, but you need to be aware that it is not auto-enrolment. This is contractual enrolment, and understanding the difference does make a difference. (more…)
It’s happy hour again* at the Office for National Statistics, with a four for two deal on inflation measures. It’s no longer just RPI and CPI: will the new choices reopen debate on how to revalue pension benefits and index pensions in payment? (more…)
What early retirement pension benefits does an employer need to provide when taking on employees on a business transfer? And how should the employer provide them?
Last year the High Court confirmed that enhanced early retirement rights under occupational pension schemes can transfer with the member on a TUPE transfer (Procter & Gamble v SCA). In July, Mervyn Parry posted about some of the questions left unanswered by this case (Early retirement rights and TUPE – where next?). These unanswered questions are now turning into real lurking obstacles which employers are finding difficult to navigate. Here are a couple of examples we’ve seen recently. (more…)