Coronavirus (COVID-19)—the pensions implications for employers
Coronavirus (COVID-19)—the pensions implications for employers

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—the pensions implications for employers
  • The Pensions Regulator’s general approach
  • Suspending or reducing deficit repair contributions (DRCs) and future service costs
  • Automatic enrolment duties
  • The Coronavirus Job Retention Scheme
  • The Job Support Scheme
  • Coronavirus Job Retention Bonus Scheme
  • Insolvency relaxations of the Corporate Insolvency and Governance Act 2020
  • The Kickstart Scheme
  • Emergency volunteering leave (EVL)
  • More...

Coronavirus (COVID-19) represents a big challenge for employers participating in pension schemes.

This Practice Note covers the impact of coronavirus on such employers, as well as government measures which can relieve some of the pensions-related pressure on them (eg through the Coronavirus Job Retention Scheme (CJRS) which results in furloughed workers, the insolvency relaxations introduced by the Corporate Insolvency and Governance Act 2020 (CIGA 2020) and the Kickstart Scheme). Other measures such as the Job Support Scheme will not involve the government contributing to employer’s pension contributions.

This Practice Note also covers the pensions impact of emergency volunteering leave (EVL) and employers’ responsibility to initiate claims on the death of certain key workers under the NHS and Social Care Coronavirus Life Assurance Scheme 2020.

For information on the issues specific to scheme trustees, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees.

The Pensions Regulator’s general approach

The Pensions Regulator (TPR) has undertaken to take a proportionate and risk-based approach towards enforcement decisions, with the aim of helping to get employers back on track and supporting both employers and savers. This suggests TPR will show a degree of sympathy and flexibility towards struggling employers.

Consistently with this, TPR decided that:

  1. until 30 June 2020, it would not take regulatory action in respect of a defined benefit (DB) scheme if a valuation submission was delayed by no more than

Related documents:

Popular documents