The 2017 Review of Automatic Enrolment proposed the removal of the lower band on which pension contributions are calcuated so earnings from the first pound were counted.
Currently, only earnings above £6420 are considered pensionable.
The ambition, as set out in the 2017 automatic enrolment review, was to remove the lower earnings band by the "mid 2020s".
In its AE review published today, the Government gave no further commitment on the timing of this change.
The Dept of Work and Pensions said it would "pay close attention to the impact and costs of making changes" and consider the optimal approach on implementation in the light of the impact of the Covid-19 pandemic and our overall focus on the economic recovery".
DWP: "whilst continuing to support long-term saving, balancing the needs of savers, employers and tax-payers."
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NEW: UK tax authorities have deregistered 770 #pension schemes which were being used for "pension liberation" activity since 2014, a Treasury minister has confirmed.
More to follow
In the United Kingdom, "pension liberation" typically occurs when a saver is hookwinked (by a confidence trickster) into believing they can access their pensions before the age of 55, without the standard "early access" penalites applied by HM Revenue and Customs.
2/
A UK parliamentary inquiry into pension scams has raised issues about the role of HMRC ( the tax authority) pursuing victims of #pension liberation scams for substantial tax debts.
The tax debts are for early access, which occurs during the pension liberation scam.
3/
The giant £67bn #USS pension scheme, with more than 400,000 members, has responded to reassurances yesterday from the UK Govt over how Open DB schemes can fund their members' pensions.
Statement to follow:
The Universities Superannuation Scheme is the UK's largest private-sector DB scheme that is still open to new joiners. It is deeply impacted by proposed changes to the funding regime for DB schemes, which promise to pay secure pensions for life.
USS: “We are pleased to note that some of our concerns about the Pension Schemes Bill and its ostensible lack of focus on open DB schemes have been discussed at length in both Houses (of parliament)." (cont)
BREAKING: The giant USS pension fund has reported itself to the regulator after plunging stock markets triggered a breach a key funding measure.
Trustees will now consider whether contributions from employers and hundreds of thousands of members need to increase.
More follows
The funding measure breached by USS related to the USS's scheme's ability to pay pension promises without extra calls on employers for contributions.
A threshold for this "self sufficiency" ratio was breached for 5 consecutive business days on March 17.
This meant that the USS had to report a breach of its covenant to the Regulator and a requirement by its trustees to consider "appropriate" action in response.
BREAKING: The £67bn #USS pension scheme will in March launch a discussion paper on changes to the way it values its liabilities.
The scheme is at the centre of a pensions dispute between university workers and employers over contribution hikes, demanded by #USS.
The #USS trustee has been reviewing the methodology approach for the 2020 Valuation since the summer and has been in discussions with #UCU and #UUK over potential changes.
#USS said the the review of its valuation methodology has been "wide-ranging" and has considered aspects of the methodology that were proposed by the stakeholder’s Joint Expert Panel, including dual discount rates.
#USS is not making public the secret legal report which led to the sacking of #USS trustee and whistleblower, Prof Jane Hutton.
Prof Hutton had provided formal consent to #USS for an Executive Summary of the report, prepared by legal firm Slaughter & May, to be published.
MF
I asked #USS whether they would now publish the Exec Summary, given Prof Hutton had consented to this.
A USS spokesperson said: “As Prof Hutton has initiated legal proceedings against USS, we cannot now comment further on matters that may be the subject of such proceedings.”
The report by Slaughter & May was commissioned by the #USS and investigated Prof Hutton's role as #USS trustee and executive director.
Prof Hutton was sacked from the #USS trustee board, following the report.
BREAKING: Professor Jane Hutton, #USS whistleblower, has been fired from her role as non-executive director of the #USS trustee board.
More to follow.
On the sacking of Jane Hutton from the #USS Board, here's what I understand:
- Sir David Eastwood, chair of the #USS trustee board, conveyed news to Prof Hutton today;
- "Material breaches of obligations" cited as reason for her role as non-exec director being terminated.
- The decision to sack Prof Hutton was made by #USS trustee board and was unanimous. The board is made up of university employer & union representatives.
Prof Hutton was appointed to the board by the University and College Union.