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Following our alert of 30 December on recent amendments to the National Pension Scheme, there are two updates: the National Pension Scheme (Occupational Pensions) Amendment Act 2019 (No. 2) Commencement Notice 2019 (the “No. 2 Notice”) and the National Pension Scheme (Occupational Pensions) Temporary Amendment Act 2019 (the “Temporary Act”).
In respect of a defined contribution pension plan subject to the National Pension Scheme (Occupational Pensions) Act 1998 as amended, the Temporary Act permits plan members to reduce their required contributions from 5% to 3% with the written agreement of their employer. It also permits employers to reduce their required contributions as they relate to a member from 5% to 3% with the written agreement of the member. These reductions can only be applicable in respect of the period 1 January 2020 through 31 December 2021.
In respect of a defined benefit pension plan subject to the National Pension Scheme (Occupational Pensions) Act 1998 as amended, the Temporary Act permits an employer to reduce by up to 2% all employer normal cost and 2% of member contributions in respect of the period 1 January 2020 through 31 December 2021. No agreement is needed between the employer and the member. If, however, there is a collective bargaining agreement that addresses the pension plan, then there must be an agreement between the employer and the collective bargaining agent representing the member.
To learn more about the changes to the National Pension Scheme and how they could affect you please contact your usual Conyers lawyer or any of those listed below.
To continue reading full articles in PDF format:
Bermuda Amends National Pension Scheme – UPDATE