Pension consultation requirements
Pension consultation requirements

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

  • Pension consultation requirements
  • Statutory framework for the pension consultation requirements
  • When do the requirements apply?
  • Definition of ‘relevant employer’
  • What happens if the listed change is proposed by a person other than the relevant employer?
  • Are there any exceptions?
  • Who are affected members?
  • Active members
  • Prospective members
  • What are the ‘listed changes’?
  • More...

CORONAVIRUS (COVID-19) UPDATE: On 9 April 2020 the Pensions Regulator (TPR) published guidance which provides a regulatory easement for employers whereby TPR will not take regulatory action in respect of a failure to carry out a full 60-day consultation on decreasing employer pension contributions under the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006, SI 2006/349, if all of the following apply:
—the employer has furloughed staff for whom it is making a claim under the Coronavirus Job Retention Scheme (CJRS)
—the employer proposes to reduce the employer contribution to its defined contribution scheme in respect of furloughed staff only
—the reduced contribution rate for furloughed staff will only apply during the furlough period, after which time it will revert to the current rate, and
—the employer has written to its affected staff and their representatives to describe the intended change and the effects on the scheme and on furloughed staff

The regulatory easement will be maintained until 30 September 2020 (extended from 30 June 2020), but TPR encourages employers to carry out as much consultation as they can in any event.

For further information, see Practice Note: The Coronavirus Job Retention Scheme—the pensions implications — Can pensions contributions payable be reduced to the legal minimum?.

Employers are required by statute to consult with members or their representatives for at least 60

Popular documents