This particular Countdown Bulletin provides important guidance for pension scheme administrators about contracting-out which ended on 5th April 2016.
Although Contracting-out came to an end in April 2016, schemes are still submitting Termination/Transfer notices with end dates on or after 6 April 2016.
Countdown Bulletins 10 and 16 advised:
“With the introduction of new State Pension from 6 April 2016 HM Revenue and Customs (HMRC) will no longer track Contracted-out rights after 5 April 2016. Therefore, schemes will not need to advise HMRC of any movement of membership, i.e. transfers etc. that take place after that date. All such movements will be the responsibility of schemes to continue to track. Any movement or method of preservation that occurs prior to 6 April 2016 will still need to be advised to HMRC and well in advance of December 2018.”
Only form CA1611 will be accepted with an end date after 6 April 2016. Where the period of employment in the scheme including transfers, starts before 6 April 2016 and ends before 6 April 2019, a Contributions Equivalent Premium can be paid as long as the total period of employment is less than 2 years.
The latest Bulletin also includes information on:
Termination and Transfer notices Statement CA1629 GMP calculations Scheme Reconciliation Service (SRS) Scheme Cessation Update from Customer Relations Team What’s happening later in the year Department for Work and Pensions (DWP) update Useful links