Would you like to use your Prudential plan for qualifying purposes?
If you'd like your plan to qualify under the rules, we might be able to help you with this but you'll need to let us know at least six months before your staging date. We'll let you know if your plan meets our requirements.
If the charge cap is not met, you'll need to act upon our communication as soon as you receive it from us.
For any queries about this, or to inform us about how you intend to proceed, please contact us through your usual plan administration channel.
We'll let you know if you meet the requirements and if you have to do anything.
- We'll review your current pension plan and default fund arrangement and provide written confirmation. If your plan does not currently have a default arrangement into which pension contributions will automatically be directed, unless there is an alternative investment choice, you'll need to choose one.
- If the charge cap is met, you won't need to take any action and the plan will be acceptable as a qualifying pension plan.
- If the charge cap is not met, you'll need to act upon our communication as soon as you receive it from us. This might mean choosing an alternative default arrangement, if you don't presently have one.
Remember that although, subject to our agreement, your existing plan may be used for qualification purposes, you'll still need to consider how you automatically enrol new eligible jobholders.
How can payments be made to existing Prudential plans?
If Prudential accepts a plan for qualifying purposes , the following outlines our payment methods. Contributions may be paid to Prudential either as a variable or fixed amount.
Contribution levels for this type of scheme are set up based on an expected level of regular contributions. However, you can vary the amount sent for each member in each pay period depending on actual scheme earnings. The schedule of member contributions must be submitted with each payment.
There's no requirement to use your current Prudential plan for qualifying purposes.
In general contribution levels for this type of scheme will be set at a fixed regular amount for a 12 month period. Although it is possible to make mid year changes, this isn't an automatic process and requires written requests in advance of the change. As fixed basis contribution is less flexible than a variable scheme, it'll be more appropriate if the pensionable pay is the member's basic pay (Alternative tier 1) as this might not change each pay period throughout the year.
Please note, it is the employer's responsibility to ensure that the amount paid/collected accurately reflects the amount required based on the employees earnings, and is at least equal to the minimum contributions required for each member in each pay period.
To understand how these methods operate in more detail, please contact us.
NO, I don't intend to use my plan for qualifying purposes
There's no requirement to use your current Prudential plan for qualifying purposes. However, from October 2012, the Government introduced a duty for all employers to automatically enrol all their eligible jobholders into a qualifying pension plan. This is a legal obligation.
Prudential has already confirmed that my plan is suitable for qualifying purposes - but are there other requirements?
If you already have a qualifying pension plan with us, you should have received communication from us confirming what action if any is needed to comply with the new regulations. This communication was titled 'Better Workplace Pensions - 6 April 2015'. For any queries about this, please contact us through your usual plan administration channel.
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