HMRC have been producing Bulletins to assist employers who have occupational contracted-out pension schemes in the lead up to the demise of contracting-out
The latest Countdown Bulletin 14 includes information on:
Scheme Reconciliation Service – warning employers that if they wish to sign up for the service, they need to do so before 6 April this year. Guaranteed Minimum Pension Calculation Service – This service will be made available to all Pension Scheme Administrators in April 2016. Most popular questions raised through the new State Pension mailbox - Information for Employers with contracted-out pension schemes – Information that could be provided when communicating with employees including employees who were members of a contracted-out pension scheme will be automatically brought back into the State Pension scheme and will no longer be able to use a contracted-out salary related (COSR) occupational pension scheme to contract-out of the State Scheme employees may, depending on their level of earnings, start to accrue entitlement to the new State Pension instead eligibility for the contracted-out National Insurance contributions (NICs) rebate of 3.4% for employers and 1.4% for employees will also cease from this dateEmployers will no longer need to report on PAYE submissions the:
employer’s contracting-out number (ECON) scheme contracting-out number (SCON) National Insurance earnings between the Primary Threshold and Upper Accrual Point (UAP) and UAP to Upper Earnings Limit