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Pensionable earnings: employers will have to consult on rule changes
by Ian Neale 28/09/2009
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In a new 12-week consultation the DWP is proposing to add changing the definition of pensionable earnings to the listed changes* on which an employer is required to consult when such a change is proposed to a defined benefit occupational pension scheme. What counts as pensionable earnings can of course have a significant impact on pension benefits.
- * Employers are required to consult with affected members or their representatives when certain significant changes (known as "listed changes") are proposed to work-based pension arrangements.
This is the most significant amendment in the draft Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2010 (although the Government thinks most employers are already consulting in these circumstances anyway). Regulation 6 amends the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 (SI 2006/349).
Other changes
Regulation 2 amends the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (SI 1996/1715) to remove the Devonport Royal Dockyard Pension Scheme from the list of those pension schemes which are exempt from the professional advisers requirements. The trustees have been consulted in advance, and don't mind.
Regulation 3 and Regulation 5 replace references to specific actuarial guidance notes adopted or prepared by the Board for Actuarial Standards (BAS) with more generic references to any relevant standards issued by the Board. The BAS is developing a new set of Technical Actuarial Standards (TASs), although not every GN will be replicated by a separate TAS. The Occupational Pension Schemes (Winding Up) Regulations 1996 (SI 1996/3126, as previously amended) and the Occupational Pension Schemes (Scheme Funding) Regulations 2005 (SI 2005/3377, as also previously amended) are affected.
Regulation 4 makes an amendment to the Pension Sharing (Valuation) Regulations 2000 (SI 2000/1052) to correct certain cross references in these regulations.
The Pension Service
Meanwhile the DWP has announced the closure of The Pension Service website. From 1 October 2009, Directgov will replace it as the place to find all government information for citizens about Pensions, Retirement and Later Life. Corporate information about The Pension Service has moved to the 'About DWP' section of the DWP website. Employers might find Businesslink a helpful source on this subject.
This work forms part of a wider long-term DWP plan to move customer-facing online information onto Directgov ("public services all in one place"). All government departments are required to do this as part of the Varney review by 2011.
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