Attention Trustees
Urgent Action is required now if your scheme has been contracted out on a salary related basis
Contracting-Out on a defined benefit basis will cease with effect from 5 April 2016.
When a pension scheme ceases to Contract-Out its Trustee has a responsibility to ensure every member’s Guaranteed Minimum Pension (GMP) is settled correctly. This necessitates a complex and time-consuming reconciliation of scheme records with those held by National Insurance Services to the Pensions Industry (NISPI), the department within Her Majesty’s Revenue and Customs (HMRC) responsible for assisting trustees through this exercise. Many schemes that ceased Contracting-Out a number of years ago are yet to complete this exercise; many haven’t even started.
source: HMRC countdown bulletin
We have developed software and offer a service that assists in the identification of pre-registration actions and aids the identification of the reason behind reconciliation differences and the action required to resolve them.
