Untitled Document
Translation of Sectoral Announcement no 2007/21
Translation of Chain-Ladder Method Circular
Translation of General Conditions for Loan Insurance
There's no such thing as a free lunch or a free assistance rider!
Rent protection
Translation of Amendment to Life Regulations
Life Insurance Statistics - Haymer Guidelines for Completion of Tables
Islamic Finance Pension Product Launched
Whose fault? 2011 returns below inflation
Actuarial exam syllabus for 2012
Untitled Document population premium waiver 2012 Aegon Katılım Hayat ve Emeklilik death 2023 Islamic finance health Asya Emeklilik
Untitled Document
Legislation
 
Treasury reminds employers of their responsibilities under Automatic Enrollment

22/12/2016

 

Marion James, Istanbul

Automatic Enrollment into the Private Pension system starts 1 January 2017 and the Treasury has sent out a reminder to private and public sector employers outlining their responsibilities related to the new era of private pensions.

The reminder also contains warnings about penalties for non-compliance and so also serves to say “Don’t say we didn’t warn you”!
 
Key points they draw to employers' attention are:

Employers need to identify specific directors (either in head office or field offices) who are authorized to sign a pension agreement with a BES company

One of the most important responsibilities for an employer once they have signed such an agreement is to deduct contributions from employees via the payroll and pay these to the pension company

If an employer fails to pass the contribution on to the pension company, or does so late, they are required to make good any financial loss (i.e. lost investment return) that incurs

Employers need to find out from employees whether they prefer an interest-bearing fund or a non-interesting bearing fund (i.e. Takaful – Islamic style fund) and to make this decision for those who have no preference

Employers are responsible for providing the pension  company with data about their employees, and also to pass on to the company various requests that the employees have relating to the agreement

Employers who fail to carry out these responsibilities will be subject to fines issued by the Ministry of Labour and Social Security

Participation in the system is, as we know, phased throughout 2017 depending on the size of a company. Only those with more than 1000 employees are required to join the system with effect from 1 January 2017. The Treasury’s announcement brings clarity to this requirement, reminding employers with more than one location that it is the total number of employees across all locations that counts for this test, and that the most up-to-date Social Security data is used in the assessment.
 
Tags: BES |
Comments
No comments have been made on this article yet..
 

www.turkeyinsurance.info © Marion James 2014 All rights reserved.