GMB union warns over employers using Covid-19 to threaten pension cuts
[ch 2: pages 27-28]The GMB union has warned that some employers are taking advantage of the pandemic to cut pension provision, by arguing that economic conditions threaten the viability of their funds.
The pensions regulator has issued guidance reminding employers that their automatic enrolment responsibilities continue despite the pandemic and stating that the regulator will “take a proportionate approach to any enforcement decisions in light of the current pressures”.
The statement highlights the flexibilities made available to employers and states that while minimum correct contributions must continue to be made on time, the period in which schemes must report payment failures has been temporarily extended from 90 to 150 days, to give trustees and pension providers more time to work with employers to bring payments up to date.
The regulator has also asked pensions providers to be flexible when agreeing contribution payment dates.
https://www.gmb.org.uk/support/coronavirus/pensions-regulator-statement-covid-19