Would you like to use your Prudential plan for qualifying purposes?
If you would like your plan to qualify under the new rules, we may be able to help you with this but you will need to let us know at least six months before your staging date. We will 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 new requirements and if any action is required by you.
- 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 will 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 may mean choosing an alternative default arrangement, if you do not presently have one.
Remember that although, subject to our agreement, your existing plan may be use for qualification purposes, you will still need to consider how you automatically enrol new eligible jobholders.
How can payments be made to Prudential existing 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 is not an automatic process and requires written requests in advance of the change. As this contribution basis is less flexible than a variable scheme, it will be more appropriate if the pensionable pay is the member's basic pay (Alternative tier 1) as this may not vary 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 do not 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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Automatic enrolment & qualifying workplace pensions
The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties.
Better Workplace Pensions - we're here to help
On the 6th April 2015, the Government introduced additional requirements for workplace pensions.
Things to think about
The rules are now in place and there are a number of issues you will need to consider to practically implement the regulations.
Prudential's Independent Governance Committee
Since 6th April 2015, there is a requirement for pension providers of contract-based plans to establish an Independent Governance Committee (IGC).
If you are an Employer and want to discuss how we can work together or to find out more details about our corporate solutions, please contact us.
Understand your obligations
The Government has created an employer responsibility to automatically enrol eligible jobholders into a good pension plan, and to make contributions to it.