Pensions - Articles - Call for more clarity on impact of employer resources test


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.”
   

 Full ACA Response

Back to Index


Similar News to this Story

Lack retirement confidence as cost of living bites
New research from PensionBee reveals that September is a pinch point for household budgets, with rising bills leading many to reconsider their long-te
Professional trustee market matures but growth slows
LCP’s latest and fifth annual survey on the Professional Trustee and Sole Trustee market – LCP Sole Mates highlights that while growth has slowed in t
Charities see improving DB pensions funding in 2025
The combined reserves of the largest 40 charities in England & Wales that sponsor DB pensions schemes now sits at £49bn in 2025, according to Hymans R

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.