Preparing for Pension Reform, Tax & NI implications of pension contributions

The United Kingdom is facing the biggest reform of its pensions systems since the state pension was introduced over 100 years ago. For the first time, employers will have a duty to enrol employees automatically into a pension scheme – with compulsory employer contributions.

In addition, The Treasury has announced its formal proposals for restricting pensions tax relief from April 2011 and there are further changes to state pension age to consider with state retirement age due to increase to 66 by 2020.

Our pension experts have designed a course to help private sector organisations plan to meet their future statutory obligations when the staged introduction of pension personal accounts begins in 2012. Also covered will be all of the other forthcoming changes to the pensions. These half-day workshops take place in major venues around the UK, or can be run in-house for you if you wish.

Be prepared – check this list…

Unless you can answer ‘yes’ to each of these questions, your current pension arrangements will not meet the new requirements

• Do you have a pension scheme?
• Can any employee aged 16-75 join if they wish to?
• Do you automatically enrol all employees aged 22 to 65 into a pension scheme within three months of joining the organisation?
• Do you make at least 3% employer contributions?
• Do you define pensionable pay as all salary, bonus, commission, overtime and statutory payments?
• Do you run regular exercises to re-enrol anyone who is not in the scheme?
• Can your systems process refunds and generate re-enrolment lists?

A few ifs and buts? Be certain: our course will help you lay the right foundation for the changes ahead.

Do you understand the relationship between
Pensions and Tax and NI?

This course provides a solid grounding in the reforms being introduced from 2012, together with an introduction to the tax and NI implications of pension contributions. This is the information you need to gain a deeper understanding of the duties being Placed on employers, so you can plan to meet your statutory obligations.

Who would benefit: - Those who have responsibility for ensuring compliance with pension legislation – including payroll, finance, HR, pension’s administrators and other managers who need an overview of the legislation surrounding the pension changes being introduced.

Course content

• Background to the need for reform
• The pension timetable 2011-2012
• Changes to State Second Pension
• Changes to state pension age – are you compliant?
• Changes to tax relief provisions from April 2011
• Changes to NI from 2012

Pension Personal Accounts

• What is the National Employment Savings Trust (NEST)?
• Can employers offer schemes other than the NEST scheme and what are the criteria?
• Quality requirements for pension schemes
• Implementation and staging dates
• What are qualifying earnings?
• On what earnings must pension deductions be based?
• Employer duties
• Employer contributions
• Opting in for employees not automatically enrolled
• Compliance and penalties
• Myths and realities

Overview of NICs

• NICs Table Letters
• NICs Thresholds and Rates
• Lower earnings limit
• Earnings Threshold
• Upper accrual point
• Upper earnings limit
• National Insurance contributions
• Effect of pensions on NI calculations
• Cost of getting it wrong.

State Pension Schemes

• Basic State Pension – Entitlement and rates
• Additional State Pension – State Second Pension and its effect on NI calculation.

Money purchase schemes

• Defined benefit schemes
• Hybrid arrangements
• Membership of Pension Schemes
• Benefits provided by registered pension schemes
• Benefits provided by non-registered pension schemes
• Additional voluntary contributions
• Minimum payments and age-related rebates
• Personal, Appropriate and Group Personal Pension Schemes.

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