PP Show 2011: Lifetime allowance troubles miss point of AE – Galvin

Employers who provide information on lifetime allowance potential tax charges in light of auto-enrolment have nothing to fear from The Pensions Regulator, delegates heard.

Chief executive Bill Galvin said the issue - which revolves around employers being barred from inducing people to opt-out - was not a key focus for the auto-enrolment regime but any employer providing information on the concern would not breach compliance rules.

He said while the issue was a problem for some people it was not the "sweet spot" for the auto-enrolment reforms.

He added: "Employers providing information is not a bad thing. Employers giving information and skewing that to induce opt-outs is. But employers who approach this with sensible intentions have nothing to fear from us.

"Employers who provide based information are not following our compliance but also verging on giving financial advice and many other things they should not be doing."

Galvin made the comments in response to a question from Towers Watson consultant David Robbins on the issue of employers warning directors approaching the lifetime allowance they might fact hefty tax charges unless they opt-out quickly.