Changes to rules funding pension advice

Employers are now prohibited from using employees’ pension contributions to settle consultancy charges in automatic enrolment schemes, under the Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2013.  Before the ban came into effect on 14th September, employers could use pension scheme funds to pay for third party advice on selecting a pension scheme, and employees who didn’t want their contributions to fund this advice had no choice but to opt out of the pension scheme. Employers can still pay for advice, but must not recover this payment from the pension scheme. The Regulations don’t affect schemes that were in place before 10th May 2013, although a consultation into extending the ban to cover schemes already in place is to be introduced later this year.
Read more about the ban at:
http://www.gov.uk/government/news/governments-ban-on-
consultancy-charges-in-automatic-enrolment-pensions-takes-effect

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