The Pensions Regulator : Updated Auto Enrolment Guidance

13 February 2012 The Pensions Regulator has published updated step-by-step guidance on auto enrolment responsibilities for employers. Initially aimed at larger schemes, the rollout will eventually encompass substantially all employers. The guidance covers the process of workforce assessment : which employers are covered and who is out, scheme provision and transition, the automatic enrolment process : plus opting-in and opting-out, employee safeguards and record-keeping. The current timetable has auto-enrolment going live for the largest employers (120,000 employees and above) in Q4 2012, with rapid progressive rollout down to medium sized schemes (30,000 and above) by year-end. Other schemes have longer…

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Central Clearing of Derivatives : EMIR Update

26 January 2012 There has been some relief in the pensions area, and in investment management in general, that we have been granted a three-year exemption from the EMIR requirement that over the counter derivatives should be centrally cleared through exchanges. Pension schemes which have established swap-based liability hedging programs would be particularly badly hit, though the legislation would extend to the use of derivatives in other areas: such as bond fund management, where they are routinely used to manage duration and credit risk.

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Beware of the FATCA !

17 January 2012 The legislation covering the US Foreign Accounts Tax Compliance Act (FATCA) was drafted in 2010 with the intention of facilitating the identification of US taxpayers having accounts with foreign financial institutions and non-financial foreign entities. Its aim is to promote anti-avoidance by having managers of these entities notify the Inland Revenue Service of the identity of American nationals who are beneficiaries and, in the absence of such notification or a null return, custodians holding US domiciled investments would be required to applying a swingeing 30% withholding levy on payments to that entity.

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PPF : Confirms GMP Treatment Method And Announces Pilot Project

10 November 2011 The Pension Protection Fund has confirmed how it will calculate compensation for males and female members of schemes : either being assessed for entry into the PPF or which are already in the PPF : in order to ensure compliance with equal treatment legislation. The PPF proposes to spend six months on a pilot scheme to iron out any teething issues before moving to full adoption of the new methodology. External link

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Department of Work and Pensions : consultation on Amendment of Occupational Pension Schemes (Levies) Regulations

21 November 2011 The Department of Work and Pensions is consulting on a proposed amendment of the Occupational Pension Schemes (Levies) Regulations 2005. This proposed amendment deals with the levy which is charged to schemes and used to pay the administration costs of the Pensions Ombudsman, the Pensions Advisory Service and parts of the Pensions Regulator. The levy is raised from schemes on a per-member basis and has not been reviewed in some time. The likely effect of the amendment would be for a significant reduction in the general levy largely due to a big drop in the part going…

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Response to Call for Advice on the review of Directive 2003/41/EC – Solvency 2

1 November 2011 The European Commission has asked the European Insurance and Occupational Pensions Authority (EIOPA) to review the 2003 European Directive for the activities and supervision of Institutions for Occupational Retirement Provision (IORP) – Solvency 2. The outcome of this process is likely to drive the shape of the UK pensions industry for at least the next ten years and is therefore of vital importance. On 25 October, EIOPA issued a comprehensive paper: “Response to Call for Advice on the review of Directive 2003/41/EC: second consultation” into a consultation period that will run through until 2 January 2012 and…

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  • Author: Martin Veasey
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