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In our response to the DWP consultation ‘Strengthening The Pensions Regulator's Powers: Contribution Notice and Information Gathering Powers Regulations 2021’, whilst we have observed that the regulations appear to meet the policy aim, we are again concerned that there is too much uncertainty in how the regulations will be applied giving rise to the fear that many normal corporate activities will potentially result in exposure to an employer resources contribution notice. |
As a result, ACA Pension Schemes Committee Chair, Peter Williams, commented: “Further clarity is needed on the intended impact of the employer resources test. Companies need to know whether actions they are likely to take could depress the proposed profit measurement and whether such a reduction would be considered material. “They need to know this through sufficiently comprehensive guidance rather than through applying for clearance.
“Companies will not want to find they are in situations where the employer resources test is potentially very frequently met, with power passing entirely to the Regulator to decide whether or not it is reasonable to impose a Contribution Notice.” |
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