Issues affecting all schemes

Automatic enrolment – earnings thresholds

The government has published its review of the automatic enrolment earnings trigger and qualifying earnings band for the 2022/23 financial year. This confirms that the figures will remain at their 2021/22 levels as follows:

  • Earnings trigger: £10,000
  • Qualifying earnings band: £6,240 – £50,270

This means that the lower end of the qualifying earnings band will no longer be aligned with the lower earnings limit for National Insurance purposes. The upper end remains aligned with the upper earnings limit for National Insurance purposes.

Action

Employers should ensure that their payroll processes continue to reflect the correct figures.

 

"Scheme pays" – information and reporting deadlines

HMRC is consulting on draft regulations that extend certain information and reporting deadlines in relation to the "scheme pays" function. The new deadlines will apply following a retrospective change of facts that affects an individual's pension input amount for a previous tax year. The consultation closes on 15 March.

Action

Trustees and administrators should keep the progress of the consultation under review. 

 

Climate change – governance and reporting requirements

The Pensions Regulator has published an illustrative example demonstrating the types of steps that schemes and their advisers could take in order to comply with the climate change-related governance and reporting requirements. The example covers the following areas:

  • Governance
  • Strategy and scenario analysis
  • Risk management
  • Metrics
  • Targets
  • Publishing a climate change/TCFD report (it does not include a template report)

Action

No action required, but trustees of schemes that are subject to the governance and reporting requirements may find the example helpful.

To read the full article, please click here.

Originally published February 2022

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2021. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.