7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days:

• The Automatic Enrolment (Miscellaneous Amendments) Regulations 2013
• DCLG launches consultation on pooling arrangements
• EIOPA publishes Work Programme 2014
• FCA publishes Guide for SIPP operators
• HMRC publishes new QROPS forms
• HM Treasury announces extension of Equitable Life payments scheme
• HM Treasury publishes response to consultation and new guidance on Fair Deal
• Kim Parsons appointed Deputy Pensions Ombudsman/Deputy Pension Protection Fund Ombudsman

The Automatic Enrolment (Miscellaneous Amendments) Regulations 2013

The Automatic Enrolment (Miscellaneous Amendments) Regulations 2013 are intended to simplify the process of automatically enrolling eligible jobholders into workplace pension saving.  These Regulations make the following changes:

• Provide an alternative definition of a pay reference period for the purpose of  assessing whether a jobholder has earnings over the threshold to be automatically enrolled into pension saving
• Provide a new definition of a pay reference period for the purpose of assessing whether a pension scheme can be used for automatic enrolment
• Introduce consistent contribution payment deadlines for everyone joining a pension scheme
• Clarify the form and content of the notice jobholders submit if they want to opt out of pension saving
• Extend the window employers have to enrol eligible jobholders into a pension scheme from one month to six weeks, together with some minor and technical consequential amendments
• Implement minor changes to the quality requirements DB pension schemes have to meet if they are used for automatic enrolment.

The majority of these changes come into force on 1 November 2013.  The only exceptions are the change to the joining window and registration deadlines that will come into force on 1 April 2014.

DCLG launches consultation on pooling arrangements

On 7 October 2013 the DCLG issued a consultation on proposals for Pooling arrangements for Academies within the LGPS.  A pool is a mechanism for two or more employers to share actuarial assumptions and risks relating to participation in the scheme as an employer.

The consultation is aimed at academies and local authorities and the closing date for responses is 15 November 2013.

EIOPA publishes Work Programme 2014

EIOPA’s work programme for 2014 makes clear that it will put a stronger emphasis on the field of occupational pensions.  In addition it intends to “progress work on the creation of a Europe-wide approach to personal pensions, with a clear focus on the consumer protection perspective”.

FCA publishes Guide for SIPP operators

On 8 October 2013 the FCA published a Guide for Self-Invested Personal Pensions operators.

HMRC publishes new QROPS forms

The following QROPS forms have been updated to reflect legislative changes:

• APSS 251 – notification to HM Revenue & Customs
• APSS 251 Notes – Notes for completing form APSS251
• APSS 251A – Change of Details
• APSS 251B – Change in status and notification of fund value
• APSS 251B insert – Notification of fund value – insert
• APSS 253 – Payments in respect of relevant members
• APSS 253 insert – Additional page for APSS253

These forms should be used from 14 October 2013.

HM Treasury announces extension of Equitable Life payments scheme

On 9 October 2013, the Government announced that it is extending the Equitable Life Payments Scheme (ELPS) to mid-2015.  This action is being taken to make sure as many Equitable Life policy holders as possible receive the payment they are due for the injustice they suffered.  The scheme had previously been due to close in April 2014.

HM Treasury publishes response to consultation and new guidance on Fair Deal

“A Fair Deal for Staff Pensions” is a non-statutory policy applying to pension provision for public sector staff.  The Fair Deal has until now, required that where staff are compulsorily transferred out of central Government to an external provider on an outsourcing arrangement, the new employer must provide a broadly comparable pension scheme for the transferred staff.  The policy also requires previous employers to provide bulk transfer arrangements for staff transferring their public service pension benefits.

Following an initial consultation in 2011, the Government confirmed that the overall approach to the Fair Deal would be retained, but that this could be delivered by offering access to the public service schemes for staff transferred under TUPE.

A further consultation explored how the reformed Fair Deal policy should apply to staff that have already been compulsorily transferred out of the public sector under Fair Deal.  The Government has now published its response to the Fair Deal consultation together with new guidance on the Fair Deal.

The new guidance sets out the detail of how the policy will operate.  The new approach aims to ensure that staff compulsorily transferred out of the public sector will continue to have access to good quality pensions.

Kim Parsons appointed Deputy Pensions Ombudsman/Deputy Pension Protection Fund Ombudsman

The Secretary of State for Work and Pensions has appointed Kim Parsons to be Deputy Pensions Ombudsman and Deputy Pension Protection Fund Ombudsman until 31 March 2014.

The new appointment is additional to the existing appointment of Jane Irvine, made in 2009 and renewed in 2012.  It has been made in order to accommodate a planned increased output of decisions in the current year and will allow greater flexibility, with Kim Parsons taking on cases as and when the office’s workload requires, on a fee paid basis.