Pension funds urge Lords to amend Pensions Bill

The bill, due to be debated in the House of Lords tomorrow, should have its definition of ‘Qualifying Earnings’ revised, according to NAPF. NAPF says the current bill states that all employee pay between £5,035 and £33,540 should be subject to pension contributions, but says all of today’s pension schemes use a different basis for contributions. Most current schemes use basic pay, or basic pay plus agreed amounts, as the basis for contributions. NAPF is worried that many employers will assume they must amend the rules of their scheme, which could cost between £25,000 and £100,000, and wa...