17th April 2020

Pension Regulator Update

https://www.thepensionsregulator.gov.uk/en/covid-19-coronavirus-what-you-need-to-consider/automatic-enrolment-and-pension-contributions-covid-19-guidance-for-employers?utm_source=d365&utm_medium=email&utm_campaign=329_ae_adviser_guidance&utm_content=covid_19_advisers

17th April 2020

A further update from the Pensions Regulator on how to treat contributions

https://www.thepensionsregulator.gov.uk/en/covid-19-coronavirus-what-you-need-to-consider/automatic-enrolment-and-pension-contributions-covid-19-guidance-for-employers

6th April 2020:

Employers are enquiring if pension contributions can be waived or delayed during the Coronavirus crisis.  The Pension Regulator has not changed any rules but expects employers to have a business continuity plan (BCP) which sets out what actions would be taken if certain events take place that would impact the running of their scheme.  Some pension providers are beginning to notify us about options to delay pension contributions.  This is awaiting clarification and we are aiming to issue another update as soon as we have clear guidelines.

How to opt-out from Auto-Enrolment Pension Schemes

Pension contributions for Furloughed workers continue under auto-enrolment. If a pension member is in financial hardship they could ask to opt-out. They will need the pension scheme ID number, date of birth and National Insurance Number.

Below are instructions on how to opt out by each provider:

Aviva:

There are two ways to opt out:

• Follow the link https://www.avivacustomer.co.uk/optout and follow the instructions
• You can call Aviva on 0800 056 3192 and follow the instructions

Aegon:

• To opt out, please download the opt out form from the link https://www.aegon.co.uk/content/dam/ukpaw/documents/opt-out-notification-form.pdf and return it your Employer and Account Manager

Legal & General:

• To opt-out, you can call Legal & General on 0345 026 8982 and request an opt-out form is sent to you at your home address. You will need to fill out the form accordingly.

NEST:

There are three ways to opt out:

• Opt-out online if you’ve already activated your online account, click ‘opt-out’ on the homepage and follow the instructions on the screen https://www.nestpensions.org.uk/schemeweb/NestWeb/faces/secure/USER_REG/pages/memberRegistrationPageAe.xhtml
• You can opt out through the automated telephone service. Call 0300 020 0090 and follow the automated instructions to opt out. Once completed, NEST will write and confirm you have opted out
• You can also opt out by post by requesting a paper form for you to fill out and give to your employer. You can contact Nest on 0300 020 0090 to request an opt-out form. If you are coming towards the end of your opt-out period, we won’t be able to send you an opt-out form as it won’t reach you in time. You will need to opt out either online or by phone.

Now Pensions:

To opt-out, please follow the below steps:

• Log into your member account using your email address and password. If you haven’t got a member account please follow the link and create one https://www.nowgatewayx.com/activate
• Scroll down to ‘your job contracts’ and click on your pension scheme
• Click the ‘opt out’ button in the opt out section on the page
• Click the ‘leave’ button and confirm your request

Royal London:

There are three ways to opt-out:

• Follow the link https://yourplan.royallondon.com/choices and follow the instructions on the screen to opt out
• Call Royal London opt out service on 0345 600 2577
• Complete and sign an opt out form which can be found https://yourplan.royallondon.com or call Royal London for an opt out form (complete and return to Account Manager)

Scottish Widows (Assist Me):

There are 2 ways to opt-out

• To opt-out, follow the link https://www.scottishwidows.co.uk/gppae/ where you can complete an online opt-out request. Send this form to the pension administrator or the payroll team.
• You can request an opt-out form by calling 0345 755 6557

Smart Pensions:

• You will need to log on to the Smart Pension portal using the login details which have been sent by post and email and opt out using the portal.
• If you’re having issues you can call Smart Pension on 0333 666 2323
• This link will give you a how to guide: https://support.autoenrolment.co.uk/en/articles/2964630-how-to-join-your-pension-scheme

Standard Life:

• Employees can opt out by completing an opt out instruction which is returned to you, as their employer. Standard Life offer an online or telephone opt out service which manages opt outs on behalf of the majority of our scheme employers. Please call 03456060093 for further assistance

The People’s Pension:

There are 2 ways to opt-out

• Call our opt-out service on 0300 330 1280
• Opt-out online via the link below https://myproducts.bandce.co.uk/Account/OptOut?Length=7&_ga=2.3247097.892005075.1585733966-474591713.1579188553

Welplan:

• To opt-out, you will need to call Welplan on 0800 195 8080 or https://www.welplan.co.uk/contact/ fill in the contact box via the link

Coronavirus Jobs Retention Scheme – paying furloughed workers

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme created and started on or before 28 February 2020, will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis (‘furloughed workers’). HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month excluding commission and bonuses, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on the subsidised wage. The Scheme will cover the cost of wages backdated to March 1^st if applicable and is initially open for 3 months, but will be extended if necessary.

Employer National Insurance and Pension Contributions

The latest Government position is all employers remain liable for associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees. Employers can claim a grant from HMRC to cover wages for a furloughed employee, equal to the lower of 80% of an employee’s regular salary or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on paying those wages.

You can choose to provide top-up salary in addition to the grant, but additional costs will not be covered by the scheme.

We are awaiting further guidance from The Pensions Regulator.

Please visit the Government website for the latest on Covid19:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19