December 2017 - Corinthian

The DWP has published their Auto Enrolment Review 2017.

Among their proposals, the DWP has confirmed that the lower age criteria will be reduced from 22 to 18. The auto enrolment review also plans to have pension contributions calculated from the first pound earned. This is rather than the current lower earnings limit of £5,876. This effectively removes the ‘Entitled Worker’ category. Unfortunately, these reforms are not expected to be brought in until the mid-2020s. And many industries do feel this is too slow.

See the whole report here: Automatic Enrolment Review 2017: Maintaining the Momentum

Corinthian is recruiting!

Corinthian Benefits are looking for a Pension Consultant to join their friendly team in Tunbridge Wells, Kent. This role would suit an individual with knowledge of DB and DC pension schemes, pension transfers and retirements including drawdown.

To apply, please send your CV and cover letter to Chris at [email protected]

Click here to view full job summary

DWP puts forward an authorisation and supervision regime to ensure Master Trusts are fit for purpose

There are currently 87 master trusts looking after the retirement savings of 90% of the savers who have auto-enrolled. Despite this, the market has been largely unregulated. There are few requirements for setting up a new master trust and little regulatory oversight.

Now, more than 5 years into auto-enrolment, the DWP has put forward an authorisation and supervision regime. This regime is to ensure Master Trusts are fit for purpose. This is due to be launched in October 2018. It will ensure they meet a number of stringent standards on an ongoing basis.

The link below gives you much more detail, including the five criteria that these trusts will be assessed on by TPR.

Corporate Adviser – industry reaction

The Pensions Regulator (TPR) has successfully prosecuted Stotts Tours of Oldham.

Scotts Tours and their MD has been prosecuted for deliberately failing to provide staff with an Auto-Enrolment pension scheme.

They were found guilty of 16 offences. These involved willfully failing to comply with workplace pension legislation since their staging date in June 2015. Sentencing is scheduled for 14 December with the court able to impose an unlimited fine. TPR director of auto-enrolment, Darren Ryder, said: “auto-enrolment is not an option, it is the law. Employers should be in no doubt if they wilfully refuse to comply they could end up with a criminal record. And they will still have to give their staff the pensions they are due.”

Remember, auto-enrolment is only partially about the pension scheme itself, it is mainly about administration, data and process. Any employers that have a NEST pension scheme believing they have fulfilled their duties have only ticked one small box. Employers which pay just lip service to their workplace pension duties risk being sued.

TPR revealed that there was a surge in compliance notices relating to auto-enrolment being issued between July and September. 21,753 cases of auto-enrolment powers have been used, up 32% since Q2. Fixed Penalty Notices are up 28% to 24,779 (£400 one-off fine). Escalating Penalty Notices are up 37% to 5,331. That’s a daily fine between £50-£10,000 depending on the companies size).

Compliance and enforcement – Quarterly bulletin: July – September 2017