Lifetime pension model no longer being pursued- report
The lifetime provider pensions model (LPM), which was raised by the former government, is currently not being pursued according to the Department for Work and Pensions (DWP).
The LPM, or “pot for life”, would allow employees to have a single pension scheme throughout their whole working lives, irrespective of how many jobs they have had.
The announcement, which was made during the Chartered Institute of Payroll Professionals (CIPP) Annual Conference & Exhibition 2024, was welcomed by many in the industry with the administrative burden and lack of a clearing house model just a few of the concerns raised.
Andrew Blair (pictured), head of Auto-Enrolment and Nest Policy, at the DWP, held a plenary session for CIPP members where he outlined the government's pension plans during their first term in office and claimed the policy is something the government is “not pursuing at this point in time.”
Samantha O'Sullivan ChMCIPPdip, Policy & Advisory lead at the CIPP, said: “We’ve worked closely with our members to give them a platform to raise their concerns regarding the proposed lifetime provider model for pensions. We are pleased that following our ongoing consultation with the DWP, that our voice has been heard because payroll professionals would’ve faced the brunt of the increased workload with this new model.
“Payroll departments are already under huge pressure to pay employees accurately and on time, and with the Budget on the horizon, we’re expecting more changes in the coming months. The CIPP looks forward to continuing to work with our colleagues at the DWP and HMRC in a considered and joined-up approach, and we’re keen to continue conversations to lend our expertise on how best to reshape pension pots in the future.”
The 2024 Annual Conference & Exhibition was the CIPP’s biggest event yet, with nearly 500 delegates, exhibitors, and government ministerial presence than ever before.
As well as hearing from Andrew Blair, other keynote speakers included Cerys McDonald, director of HMRC and Justin Madders, Under-Secretary of State for Employment Rights, Competition and Markets (part of the Department for Business and Trade).
The Conference also featured plenary sessions and seminars on the future of payroll with topics including AI, cybersecurity and technology transformation. Practical areas such as supporting employees with the cost of living crisis, mitigating risk and ensuring compliance, as well as pathways into payroll via a CIPP apprenticeships panel, were also covered in discussions from industry leaders.
Following another successful National Payroll Week in September, which included the launch of the CIPP’s Future of Payroll Report 2024, the Annual Conference & Exhibition 2024 was an opportunity for payroll professionals to educate themselves, network with industry peers, and celebrate the best the profession has to offer.
For more information on the Chartered Institute of Payroll Professionals please visit the website.