This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+Cover+small+181214
Categories:Pensions

Auto exemption for EEA staff

  • Print
  • Comment

The Government plans to exempt 9,000 people working in the UK for firms based in the European Economic Area from pension auto-enrolment.

The Department for Work and Pensions says offering a pension to someone who works in the UK but whose relationship with their employer is governed by laws in a different country would be “complex and costly”. It estimates 9,000 people will be affected by the change but 2,000 of these would be likely to opt out of auto-enrolment anyway.

A DWP consultation into the proposals, published this week, says: “To offer a pension to a qualifying person, a UK occupational pension scheme must be able to comply with social and labour law relevant to occupational pensions of the other EEA state. This can be complex and costly and our understanding is very few schemes offer cross-border provision.”

UK pension schemes are under no obligation to accept people based in the EEA and the Government says it has no plans to change this. The EEA is made up of all 27 EU member states as well as Iceland, Liechtenstein and Norway. The consultation ends on April 2.

Worldwide Financial Planning IFA Nick McBreen says: “Just as the Government has dual-tax arrangements with other countries, it is now recognising the need to recognise dual pension arrangements. Cutting red tape for foreign firms operating here is a must as they will just leave the UK otherwise.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth


Fund Data

Editor's Pick



Poll

Will providers be forced to pay out compensation over annuity misselling?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments