Posts Tagged ‘Pensions’
Friday, January 6th, 2012
The dawn of 2012 brings the annual discussion about upcoming employment law developments. The following may be of particular interest to employers:
- The qualifying period for unfair dismissal is expected to be increased from one to two years in April
- Pensions auto-enrolment for larger employers begins in October
- Consultations are to be progressed on the introduction of the following:
- ‘protected conversations’ between employers and employees about employment issues
- a standard text for compromise agreements
- allowing smaller employers to execute ‘no fault’ dismissals on payment of a prescribed sum
- early compulsory conciliation of all claims
- introduction of fees to bring a tribunal claim
The government is keen to reduce the amount of red tape in employment law to support business and boost the economy. This will be welcomed by employers. However care must be taken to ensure that the changes improve the effectiveness of the current framework, and do not simply add to employers’ administrative burden.
Posted by Hayley Prescott, who specialises in employment law, both contentious and non-contentious, including tribunal claims, unfair dismissal, redundancy, policies and procedures, compromise agreements, contractual issues and general advisory work.
Hayley Prescott
0115 976 6116
hprescott@brownejacobson.com
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Tags: auto enrolment, compromise agreements, employment, employment law, employment tribunals, further education, Pensions, Retail, unfair dismissal, unfair dismissal claims
Posted in Employment, Further Education, Retail | No Comments »
Friday, December 9th, 2011
The change in Government left auto enrolment and NEST hanging in the balance. Following the publication of an independent review earlier this week, it appears that it is full steam ahead with auto enrolment and NEST.
The good news is that a 3 month waiting period has been introduced before the auto enrolment requirement kicks in, and some of the thresholds have been increased (the earnings threshold at which an individual is auto enrolled has been increased to match the income tax personal allowance; the threshold for pension contributions to become payable matches the National Insurance primary threshold).
However the not so good news for smaller employers is that the requirements apply to all employers irrespective of size.
It still seems that many of the principles which caused concern for employers in terms of costs and administrative burden remain.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Tags: auto enrolment, employee pensions, income tax, NEST, Pensions, pensions law, Tax
Posted in Employment, Local Authorities, Pensions, Public Sector, Tax | No Comments »
Friday, September 30th, 2011
The European Council and the Economic and Monetary Affairs Committee have proposed that regulated firms will need to comply with Solvency II requirements from 1 January 2014. They have also proposed that firms must submit their implementation plans to supervisors in the summer of 2013.
The Council has also suggested that the European Insurance and Occupational Pensions Authority (EIOPA) should have until 31 March 2013 to issue guidelines on the contents of implementation plans. With the deadline for delivery of implementation plans set for 1 June 2013, and with most firms having already begun drafting (or, at least, considering) their implementation plans, the industry will be concerned that there will be insufficient time to respond to EIOPA’s guidance before the deadline for submission, just 2 month’s later.
The FSA is yet to issue any comment in response to the Council’s proposals.
Posted by Tim Johnson, who specialises in professional indemnity claims; defending professionals in the property, legal, financial services and IT sectors; also advises in relation to insurance coverage disputes.
Tim Johnson
0115 976 6557
tjohnson@brownejacobson.com
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Rating: 10.0/10 (1 vote cast)
Tags: browne jacobson, economic and monetary affairs committee, EIOPA, European Council, european insurance and occupational pensions authority, FSA, insolvency, insurance, Pensions, regulated firms, solvency II, Tim Johnson
Posted in Insurance | No Comments »
Friday, September 16th, 2011
A series of strikes are scheduled as a result of the proposals to increase member contributions to public sector pension schemes
The publication of the final Hutton report earlier this year brought with it rumblings of discontentment amongst recipients and future recipients of the various public sector schemes to which it outlined reforms including the NHS pension scheme
The Government clarified that although it accepted all of Hutton’s 27 recommendations for reform, implementation would only occur following consultation with unions and members. The first consultations have been opened for a number of public sector pension schemes and they relate to increasing member contributions with effect from April 2012.
This consultation is only the first issued in respect of the 27 recommendations and the reaction amongst unions and members to these initial consultations signifies that there could be a lot more strikes ahead. It remains to be seen whether the Government determine that financial pressures and the “need” for reform of the public sector schemes will outweigh the upheaval to public services as a result of the planned strikes.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Tags: browne jacobson, government, Hutton report, NHS, NHS pension scheme, pension schemes, Pensions, Public Sector, public sector pensions, public sector strike, public sector strike action, Victoria Leybourn
Posted in Employment, Health, Pensions, Public Sector | No Comments »
Friday, April 1st, 2011
The Uniq plc case opens a door to a brighter future for employers sponsoring defined benefit schemes facing large deficits.
In this recent case the High Court approved the ground-breaking arrangement of a pension deficit for equity swap. This decision could pave the way for other employers looking to manage their defined benefit pension liabilities.
Whilst this may not be a cure for all, it certainly is a sound beginning and will no doubt be explored by many employers wanting to be released from their financial obligations to their defined benefit scheme and avoid insolvency.
By virtue of a regulated apportionment arrangement and a complex restructuring involving the employers, pension scheme trustees and the Pension Protection Fund (PPF), Uniq plc has been released from its employer pension debt liability in exchange for giving the trustees a large stake in the company. The shareholding is then held on charitable trust under a new corporate entity, which has entered administration with the pension scheme entering a PPF assessment period.
Susan Evans
0115 976 6596
sevans@brownejacobson.com
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Rating: 10.0/10 (1 vote cast)
Tags: High Court, Pensions, regulated apportionment arrangement, The Uniq Plc
Posted in Employment, Pensions | No Comments »
Thursday, March 3rd, 2011
The Government’s consultation on the move from RPI to CPI as the basis for increasing pension benefits in private sector pension schemes closed yesterday, 2 March 2011. It will be interesting to see the outcome of this consultation, especially in light of the Government’s rethink on the impact of the switch from RPI to CPI as set out in the revised impact assessment. The impact of the switch from RPI to CPI on the benefits paid out from private sector pension schemes is greater than the Government initially envisaged.
In the meantime, as a result of the change in the statutory order from RPI to CPI index linking, pension scheme rules in relation to pension increases and revaluation of deferred members’ benefits should be carefully checked to determine whether these are increased in line with CPI or RPI.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Rating: 10.0/10 (1 vote cast)
Tags: Pensions, private sector pensions, RPI to CPI
Posted in Employment, Pensions | No Comments »
Friday, February 4th, 2011
Employers who have offered good pensions for the employees have had a hard time of it over the past 15 years or so, particularly for those offering final salary schemes facing large deficits.
But the Pensions Bill may offer new opportunities for employers to offer good quality pensions to their employees at a more affordable price, whether it be through utilising the new auto enrolment obligations or simply by changing their final salary schemes to allow pension increases to be in line with the Consumer Prices Index instead of the Retail Prices Index.
Removal of the default retirement age could also save employers money in the long term with members paying contributions into pension schemes for longer.
And the Pensions Bill will extend the return of surplus deadline for resolutions to be made by schemes to 6 April 2016.
The Pensions Bill may have been intended as a measure to save the Government money, but it it also provides opportunities for employers to save a few quid too.
On 12 January 2011, the Pensions Bill 2011 was introduced in the House of Lords.
Susan Evans
0115 976 6596
sevans@brownejacobson.com
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Tags: default retirement age, employment, Pensions, Pensions Bill 2011
Posted in Employment, Pensions | No Comments »
Tuesday, January 4th, 2011
A gentle reminder that the new year also brings with it the end of transitional protection afforded to pension schemes following on from the ‘A-Day changes’ with effect on and from 6 April 2011.
Substantial changes were introduced on 6 April 2006 to the pension scheme arena – these are referred to as ‘A-Day changes’. Regulations were introduced setting out transitional protection for pension schemes so that the pre A-Day limits could continue to be utilised post A-Day without amending the pension scheme’s trust deed and rules.
The time is fast running out for pension schemes to continue to rely on the transitional protections. As at 6 April 2011 the transitional protection will lapse. Therefore, where the pension scheme has continued to rely on the transitional protection contained in the regulations, trustees and employers should act now to avoid any undesired effects resulting from the transitional protection ceasing to apply; for example an increase in scheme liabilities.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Tags: A-day changes, employment, pension schemes, Pensions
Posted in Employment, Pensions | No Comments »
Thursday, November 25th, 2010
The trustee body of the National Employment Savings Trust (“NEST”) announced yesterday that there will be a reduction in the proposed contribution charge from 2% to 1.8%.
The annual management charge remains at 0.3%, which will be payable from the employee’s pension pot annually.
The reduction in the monthly contribution charges will mean that employees who are members of NEST will see more of their and their employer’s contributions in their pension pot rather than swallowed up in administration costs.
The contribution charges were put into place to cover the initial set up costs for NEST. Once the set up costs have been recouped, it will be interesting to see whether there are any corresponding adjustments to the contribution charges.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Rating: 7.0/10 (1 vote cast)
Tags: employee pensions, employer contributions, employment lawyers, National Employment Savings Trust, NEST, pansions lawyers, Pensions, pensions law
Posted in Employment, Pensions | No Comments »
Wednesday, October 20th, 2010
The Chancellor today announced that public sector pensions are to be sustainable and affordable ‘gold standard’ final salary pensions. Employee contributions are to be increased staggered in line with employee earnings.
But has he got the balance right? There might be some unintended consequences for future tax payers – employees may withdraw from their public sector schemes, opting out from paying higher contributions, particularly during difficult times, leaving themselves with either little or no private pension income in retirement.
This is a trend currently being seen in the private sector, this combined with the closure of many final salary pension schemes could mean that future tax payers have to pick up the tab for more pensioners without sufficient retirement income.
It will be interesting to see how this progresses.
Susan Evans
0115 976 6596
sevans@brownejacobson.com
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Tags: comprehensive spending review, Pensions, Public Sector
Posted in Comprehensive Spending Review, Public Sector | No Comments »
Tuesday, October 5th, 2010
The 1st October 2010 saw the much anticipated Equality Act 2010 come into force. From a pensions perspective it is a bit of a damp squib, merely repeating or replacing much of the anti-discrimination aspects of existing legislation.
The more radical proposed change linked to the Equality Act is the potential scrapping of the default retirement age – views are currently being sought via consultation which is due to close on 21 October 2010.
The main changes introduced by the Equality Act in relation to pensions are nothing ground-breaking, reflecting common sense anti-discrimination provisions for example extending the non-discrimination rule applicable to all occupational pension schemes so that it includes gender reassignment marriage and civil partnerships and sex.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Tags: default retirement age, employment, equality act 2010, Pensions
Posted in Employment | No Comments »
Wednesday, July 28th, 2010
The Supreme Court has today referred a case against the Ministry of Justice concerning its refusal to grant pensions to thousands of part-time judges to the European Court of Justice.
Employment barristers at Cloisters, instructed by Browne Jacobson, are arguing that retired Recorder (part-time judge) Dermod O’Brien QC should be entitled to a judicial pension on retirement pro rata to the pension of full-time circuit judges. It is alleged that he has been discriminated against and that this is unlawful under European law as set out in the Part-time Workers Directive.
The Ministry of Justice has argued that this discrimination against part-time workers is not prohibited by European law, asserting that neither Mr O’Brien nor any judge “works” for, or is in an employment relationship with, anyone.
Part-time judges are paid pro rata to full time judges and are entitled to all the same benefits such as maternity and sick pay so should they not also receive the same pension’s rights as their full-time colleagues?
Posted by Edward Benson
0115 976 6211
ebenson@brownejacobson.com
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Tags: employment, Part-time Workers Directive, Pensions, Supreme Court
Posted in Employment | No Comments »
