UK - Full members of the Social Housing Pension Scheme may be forced to subsidise employers which secretly close entry to new workers.
A number of employers have closed the scheme – which is run by The Pensions Trust – to new members as part of a cost-cutting drive. Closed schemes are then charged a 3% levy to compensate for the fall in new members into SHPS.
But IPN’s sister publication Professional Pensions has been told a handful of employers have failed to tell The Pensions Trust they have closed entry into the scheme to avoid the levy.
The Shaftesbury Housing Group closed the SHPS scheme to new employees last year because of the high number of part-time and lower-paid care staff it employs.
Corporate services director Martin Kemp said: “We wondered whether there were other social landlords who had closed their schemes and not notified The Pensions Trust.
“At the time, we simply wanted to be reassured that we wouldn’t be unfairly penalised because of being honest, when others were potentially not being as forthcoming.”
The Pensions Trust chief executive Richard Stroud said he was “not aware” of any firm avoiding the 3% charge for closing to new members.
He added: “We do have an analysis of those employers where new people aren’t enrolling, so from time to time we speak to them to find out what is happening – a lot of them are relatively small employers and they haven’t recruited people.”
The SHPS was established 20 years ago and used by around 700 associations and more than 25,000 employees.
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