In March 2014 the Government announced a range of measures designed to improve the quality of workplace pensions.
These proposals mean that unfortunately, from April 2015, when they came into force, our Talisman GPS does not meet the new criteria for an auto enrolment scheme or a qualifying scheme.
We'd already taken the decision to not update GPS to allow it to be used as an auto enrolment scheme but we had been allowing it to be used as a qualifying scheme for existing members. However, due to further changes by the Government, since April 2015 GPS can no longer be used as a qualifying scheme, regardless of the contribution levels being paid into it.
This position has implications for:
In both circumstances they'll need to ensure that their employer duties are met for the existing members of the GPS who are still employees, as well as any other employees.
To help these employers meet their employer duties for auto enrolment we'll be offering them all a Retirement Solutions plan, where they don't already have one. If they already have a Retirement Solutions plan, they can use it for auto enrolment instead. This can accommodate existing GPS members who are still employees and any other employees who are being auto enrolled into, or wish to join, the Retirement Solutions plan.
You'll no doubt be in contact with your GPS clients as a result of this change, so we want to make sure that you have all the information you need at your fingertips.
If you have any clients with a GPS who have an auto enrolment staging date in January 2015 or later, we'll email you and your client(s) six months before their auto enrolment staging date to make you aware of how the changes affect the plan and what you need to do.
We've also posted information online for employers.
If you have any clients with a GPS who had an auto enrolment staging date before January 2015, we emailed you and your client in October 2014 to confirm the position with their GPS and the options available to them.
We've got a range of support material to help you guide your clients through the three key decisions they need to make if they want to open a new Retirement Solutions plan to satisfy their auto enrolment pension scheme: