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Wednesday 28 September 2016
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Government amends NHS Pensions Act

Government amends NHS Pensions Act

The automatic enrolment window for NHS pensions has been extended following a government consultation. 

The updated legislation will extend the automatic enrolment joining window from one month to six weeks. 

The Pensions Act 2008 and 2011 placed new duties on all employers to automatically enrol eligible jobholders into a qualifying pension scheme. 

The aim is that automatic enrolment (AE) to a pension scheme will help individuals to save and plan for their retirement. 

The employer and the Government (in the form of tax-relief) will also contribute to the cost of providing for that pension.

The government’s report states: “The legislation has also been changed to include greater clarity and consistency concerning the requirements for defined benefit test schemes in relation to the appropriate age, service limits and revaluation that apply in those schemes. 

“The final changes either give employers more options or extend deadlines for existing processes without changing the processes themselves.

“We want to make it easier for employers to use payroll systems to assess jobholder status against earnings with the information that will already be available from recognised periods already established in payroll software.” 

The government response to the consultation is available to view online.