NEWS   |    April 9, 2020

Partner Vikki Massarano comments in Pensions Age urging employers to explain DC scheme contribution changes to furloughed workers during Covid-19 pandemic

Employers must properly explain any defined contribution scheme contribution changes to furloughed workers, according to recommendations from Arc Pensions Law partner, Vikki Massarano.

Massarano noted that employer pension contribution amounts, and what they are based on, must be “clearly and properly covered” in furlough agreements.

She also warned that employers must continue to adhere to auto-enrolment requirements while certain scheme rules could also require changes if employers want to pay minimum auto enrolment contributions only.

Massarano’s advice comes a day after analysis from the Resolution Foundation predicted that more than nine million employees could find themselves furloughed under the government scheme.

Read Vikki’s comments in Pensions Age.

The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. Arc Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.

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