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.
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