ACA seeks clarity on impact of employer resources test
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The Association of Consulting Actuaries has said it is concerned that there is too much uncertainty in how new regulations introducing an 'employer resources test' will be applied.
Pension schemes committee chair Peter Williams said further clarity is needed on the intended impact of the employer resources test, explaining the ACA's response to the DWP consultation ‘Strengthening The Pensions Regulator's Powers: Contribution Notice and Information Gathering Powers Regulations 2021’.
"Companies need to know whether actions they are likely to take could depress the proposed profit measurement and whether such a reduction would be considered material," Williams said.
He added: "Companies will not want to find they are in situations where the employer resources test is potentially very frequently met, with power passing entirely to the Regulator to decide whether or not it is reasonable to impose a Contribution Notice.”
The ACA admitted however that the regulations "appear to meet the policy aim".
Pension schemes committee chair Peter Williams said further clarity is needed on the intended impact of the employer resources test, explaining the ACA's response to the DWP consultation ‘Strengthening The Pensions Regulator's Powers: Contribution Notice and Information Gathering Powers Regulations 2021’.
"Companies need to know whether actions they are likely to take could depress the proposed profit measurement and whether such a reduction would be considered material," Williams said.
He added: "Companies will not want to find they are in situations where the employer resources test is potentially very frequently met, with power passing entirely to the Regulator to decide whether or not it is reasonable to impose a Contribution Notice.”
The ACA admitted however that the regulations "appear to meet the policy aim".
