Pensions Regulator  

TPR warns employers on pension opt-outs as rules relaxed

"We all know how important it is to fund pensions but actually still having a job to go to right now is, I would argue, of much greater value.

"If anything, I would have gone further and allowed employers a suspension of their AE obligations for six months."

The government recently confirmed that the Coronavirus Job Retention Scheme would include the employer’s statutory minimum AE contributions.

If an employer makes a claim for a grant to cover the lower of 80 per cent of a furloughed worker’s salary or £2,500 per month, they will also be able to claim the statutory minimum employer pension contribution on those wages.

TPR has said if employers still struggle to pay their pension contributions they should speak to their provider to see whether they are offering any flexibility on payments.

The regulator has written to providers asking them to be as flexible as possible when agreeing contribution payment dates.

As previously announced the period in which schemes must report payment failures has been extended from 90 days to 150 days to give trustees and providers more time to work with employers to bring payments up to date.

amy.austin@ft.com

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