NICs-based levy to fund health & social care

The UK Government announced its intention to impose a 1.25 per cent health and social care levy on employees, employers and the self-employed, from April 2022. The levy will be based on the National Insurance contribution (NIC) system, and the money that is raised will be ring-fenced to provide more funding for the National Health Service and for reform of adult care services.

New criminal offences in force—the Regulator’s prosecutions policy

The Pensions Regulator has announced the outcome of a consultation exercise concerning its prosecutions policy for the new criminal offences introduced by the Pension Schemes Act 2021 with effect from 1 October 2021. The policy statement, revised in light of consultation responses, is now operational. In a related move, the Regulator is seeking comments on a further three draft policies, broadly intended to situate the criminal prosecution option within the context of its other regulatory powers.

Regulators spark discussion on consistency in VfM assessments

The Pensions Regulator and the Financial Conduct Authority have published a joint discussion paper in which they invite comments on proposals intended to promote consistency and transparency in value for money (VfM) assessments in money purchase schemes.

BSP earnings link suspended

As was widely expected, the Government has announced its intention to temporarily override the earnings-linking provision within the State pension rules, for the increases due in 2022.

Reducing fixed-rate GMP revaluation

The Department for Work and Pensions (DWP) proposes to reduce the fixed rate of revaluation for guaranteed minimum pensions (GMPs) to 3.25 per cent per annum for those leaving service during the period from 6 April 2022 to 5 April 2027. The rate of revaluation for those whose pensionable service terminates between 6 April 2017 and 5 April 2022 is 3.5 per cent p.a..

PPF 90-day payment window extended

The Pension Protection Fund (PPF) has extended for another year the availability of a 90-day window for payment of levy invoices. The extension is available to those who can show that they are suffering financially due to the SARS-CoV-2 pandemic.

Pension Schemes Newsletter 133

Her Majesty's Revenue and Customs issued the 133rd edition of its Pension Schemes Newsletter.