Two draft codes of practice on the reporting of late payments of contributions to pension schemes have been laid before Parliament.
Legislation on the late payment of contributions to occupational money purchase schemes and to personal pensions are expected to be effective from April, claims the Pensions Regulator.
The codes of practice give guidelines about reporting to the Regulator and to members the late payment of contributions, as well as clarifying the obligations of trustees and pension scheme managers to report to the Regulator the late payment of contributions into the pension scheme.
However the reporting of late payments will only need to be done where it is likely to be of material significance. Examples of when late payments should and should not be reported are provided by the regulator in the codes.
The draft code relating to late payments made to personal pensions also covers the new legislative requirement for employers to supply scheme managers with information they need to monitor the payments, and the need for managers to report to the regulator when they do not get this information.
Trustees of money purchase schemes will be affected by the code for the reporting of late payments to occupational money purchase schemes, while the second code will apply to managers of personal pension plans, and stakeholder pension plans where there are direct payment arrangements such as the employer deducting contributions from pay to put them into a pension.
The publication of the two codes aims to help trustees and managers meet the new requirements, but there are no changes to the legal time limits for the payment of contributions to both occupational and personal pension plans.
If a decision to report a late payment is made, the codes state it should be made as soon as reasonably possible and normally within 10 working days of identifying a significant late payment.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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