Contracted-out money purchase meaning

When does a section 75 debt arise? An s 75 liability crystallises in respect of an occupational pension scheme that is underfunded on a buy-out basis and: an employment-cessation event happens for a relevant participating employer within a multi-employer scheme an insolvency event occurs in relation to a participating employer of the scheme, or the scheme formally goes into winding up In a multi-employer scheme, an employer’s s 75 debt is its allocated share of the scheme deficit, appropriately assessed on a buy-out basis. As an alternative to immediately paying the s 75 debt in full, an employer may enter into a deferred debt arrangement, an apportionment arrangement, or a withdrawal arrangement. Section 75 does not apply at all to money purchase schemes, unregistered pension schemes, unfunded public sector schemes, and a scheme with only one member. ...

THIS CHECKLIST APPLIES TO TRUSTEES OF PRIVATE SECTOR DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES This Checklist has been archived. It summarises the actions DB trustees needed to take in the run-up to 6 April 2015, and afterwards, to accommodate the pension flexibilities (also called pension freedoms) introduced on 6 April 2015. For more about the nature of those reforms, see Practice Note: Pension freedoms—an introduction [Archived]. In this Checklist, ‘DB trustees’ denotes the trustees (or managers) of arrangements other than those providing flexible benefits, i.e. excluding: money purchase arrangements cash balance arrangements other arrangements that typically require an individual to buy an annuity Note that the additional voluntary contribution (AVC) facilities of defined benefit schemes do, in effect, amount to arrangements offering flexibilities. The issues set out in Pension flexibilities: steps for DC trustees to take—checklist [Archived] are therefore relevant to trustees of such schemes, but only to the extent that the AVC facilities are concerned. Preliminary steps ...

THIS CHECKLIST APPLIES TO TRUSTEES OF DEFINED CONTRIBUTION (DC) OCCUPATIONAL PENSION SCHEMES This Checklist has now been archived. It sets out the actions DC trustees were required to undertake both before and after 6 April 2015, concerning the pension flexibilities/pension freedoms that came into effect on 6 April 2015. For further detail on the scope and nature of those reforms, refer to Practice Note: Pension freedoms—an introduction [Archived]. Within this Checklist, 'DC trustees' refers to trustees (or managers) of pension arrangements providing flexible benefits, ie: money purchase arrangements cash balance arrangements other arrangements which typically require an individual to purchase an annuity Step 1—preliminary steps familiarise yourself with the pension flexibilities in detail...

In this issue: Automatic enrolment Investment Taxation Contracting-out Public sector pensions Daily and weekly news alerts Dates for your diary Trackers Automatic enrolment DWP publishes review of earnings trigger and qualifying earnings band for 2025/26 The Department for Work and Pensions (DWP) has released a review assessing the automatic enrolment (AE) thresholds—namely the earnings trigger and the qualifying earnings band—for the 2024 to 2025 financial year. In a written statement, the Minister for Pensions, Torsten Bell, emphasised that this year’s review primarily seeks to preserve the stability of automatic enrolment for both employers and individuals. The government also aimed to keep its framework enabling individuals to build pension savings while remaining affordable for employers and taxpayers. The review concludes that every AE threshold for 2025/26 will stay at the 2024/25 levels. The earnings trigger for automatic enrolment sets the point at which an eligible worker is put into a workplace pension...

The data Between July and September 2024, the FOS logged 73,692 new complaints. The equivalent period in 2023 brought 46,716 cases—a 58% rise in total complaints. The FOS sets out the five most complained-about products, comparing Q2 2024 with the same quarter in 2023: credit cards—22,366 complaints, versus 4,505 hire purchase for car finance—11,817 complaints, versus 4,622 current accounts—9,186 complaints, versus 7,880 car or motorcycle insurance—3,386 complaints, versus 4,036 electronic money—2,196 complaints, versus 1,340 Complaint volumes have reached record highs overall and for particular products, with several categories showing sharp year-on-year jumps. The largest increases concern credit cards and hire purchase agreements, up 496% and 255% respectively. Complaints about current accounts, although growing less steeply, have still hit their highest quarterly level on record. There has also been a notable rise in fraud and scam matters. The FOS has indicated that a substantial share of complaints relate to fraud and scams. In the second quarter...

In this issue: Pensions Regulator Trustees, governance and administration Members and benefits Employers and automatic enrolment Automatic enrolment and scheme rules Scheme amendments and construction of scheme rules Daily and weekly news alerts Dates for your diary Trackers Pensions Regulator TPR report shows it acted promptly to protect savers following Capita cyber security incident The Pensions Regulator (TPR) has released a report setting out how it collaborated with pension administrator Capita to gauge risks to pension schemes after a cyber security incident in March 2023. The paper explains that TPR intervened to make sure Capita was determining the scale of any impact on schemes and alerting trustees of those affected so that safeguards could be implemented. According to TPR, this rapid response meant thousands of pension savers were safeguarded. Capita learned of a cyber incident on 31 March 2023 in which certain data was accessed and/or copied, creating a risk that criminals could obtain...

This Practice Note sets out the principal steps for properly bringing to an end a defined contribution (DC) occupational pension scheme—also described as a money purchase occupational pension arrangement or a trust-based defined contribution plan. Throughout this Practice Note, this type of arrangement is termed a ‘DC scheme’. The guidance applies across a range of DC schemes, including trusts that sit outside the authorised master trust framework and small self-administered pension schemes (SSASs), although the latter may, in certain cases, be excluded from particular statutory obligations or requirements. This Practice Note does not cover the winding-up of any: an ‘authorised master trust’ under the Pension Schemes Act 2017 (PSA 2017)—for further detailed information, please see Practice Note: The authorisation and supervisory regime for master trusts, contract-based DC arrangements (eg group personal pension arrangements)—for further details and guidance, see Practice Note: Winding up of personal pension schemes Statute makes distinct and specific provision for hybrid schemes (combining defined benefit (DB) and DC...

What is an assessment period? When a qualifying insolvency event affects the sponsoring employer of an eligible scheme, the scheme moves into a Pension Protection Fund (PPF) assessment period as a result of that event. This arises on the occurrence of that event. The day on which that period starts is known as the ‘assessment date’ for the scheme. Since 3 January 2012, the assessment period is no longer required to last for at least 12 months. Throughout the assessment period, the PPF considers whether the scheme satisfies the requirements for entry into the PPF. In particular, the PPF will appoint an actuary to carry out a valuation of the scheme as at the assessment date, in order to determine whether the scheme’s assets are less than the protected liabilities—broadly, the benefits the PPF would pay to members if the scheme were to enter the PPF...

ARCHIVED: This archived Practice Note centres on the abolition of contracting-out on a money purchase (or protected rights) basis, taking effect from 6 April 2012. It is not maintained and remains archived. For general information concerning the meaning of contracting-out, see the Practice Note entitled: What does ‘contracting-out’ mean for pension lawyers? Contracting-out on a money purchase basis before 6 April 2012 Contracting-out was the route by which an individual (whether employed or self-employed) could choose to waive accrual of the part of the State pension which, before 6 April 2016, was called the additional State pension (or Second State Pension (S2P)). Contracting-out on a money purchase basis (also known as DC contracting-out) first became possible in April 1988. A money purchase form of contracting-out required the relevant contracted-out pension scheme to grant members ‘protected rights’ in lieu of the state benefits forgone as a consequence of contracting-out. Schemes contracted-out on a money purchase basis Before 6 April 2012, protected rights could be provided through the...

Please carefully review these important terms and conditions before purchasing from our catalogue and ensure they include everything you expect and nothing you would refuse to accept. Summary of some of your key rights: The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 state that, in most situations, you have 14 days from the day you receive your items to change your mind and obtain a full refund. The Consumer Rights Act 2015 requires goods to match their description, be suitable for their intended use and be of satisfactory quality. Across the anticipated lifespan of your purchase, you are entitled to: up to 30 days: if your goods are faulty, you can claim a refund; up to six months: if repair or replacement is not possible, in most cases you are due a full refund; up to six years: if the goods do not last a reasonable length of time, you may be entitled to some money back; ...

Please read these important terms and conditions before you purchase anything on our website, and make sure they include everything you require and nothing you’re unwilling to accept. Summary of some of your key rights: The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 state that, in most situations, you may cancel within 14 days. If you agree that the services begin during this period, you could be charged for what you’ve used. The Consumer Rights Act 2015 says: you can ask us to perform the service again or put it right if it isn’t delivered with reasonable care and skill, or receive some money back if we can’t remedy it; if no price was set in advance, the amount you’re asked to pay must be reasonable; if no timeframe was set in advance, it must be carried out within a reasonable time. This is a summary of some of your key rights. For detailed information from Citizens...