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The government will publish a response to the consultation on technical changes for auto enrolment in early March 2016 with a view to making the regulations in the same month.

The regulations would come into force in April 2016 and would amend the existing Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010, the Employers’ Duties (Implementation) Regulations 2010 and the Employers’ Duties (Registration and Compliance) Regulations 2010. Two of the main changes are:

  • Director-only companies – it is highlighted that there is a strong case that director-only companies, where two or more directors have contracts of employment, should be given the discretion to be exempted from the automatic enrolment duty. This would allow director-only companies to, if they wish, be exempt from AE
  • LLPs – a similar exemption to the director-only companies proposal is also proposed for LLPs. It is stated that ‘LLPs who have genuine partners [are] to be given the discretion to exempt those partners from the employer duties’.

More information is available here

Article extracted from ACCA “In Practice” Newsletter