Certifying a pension scheme for auto-enrolment

The Department for Work & Pensions (DWP) has updated its guidance on certifying money purchase and defined-benefit (DB) schemes for auto-enrolment. Employers preparing for staging should review the clarifications and changes in the new guidance to ensure that they can certify their scheme on the correct basis. Allen & Overy highlights the key changes in this briefing. Employers who have already certified their auto-enrolment schemes should also review the new guidance to check that no new issues arise as a result of the changes.

Where a DB scheme, or the DB element of a hybrid scheme, is being used as an auto-enrolment scheme, in order to meet the relevant quality requirement the scheme must have a contracting-out certificate or meet the test scheme standard in relation to all the relevant jobholders.

Employers can determine whether their scheme meets the test scheme standard so long as actuarial calculations or assessments are not required. If pensionable earnings in the scheme are not the same as qualifying earnings in the notional test scheme, self-certification may still be possible using a simplified test based on the scheme accrual rate and the ratio of the scheme’s definition of pensionable pay to final qualifying earnings. More complex comparisons will require actuarial certification. The guidance is statutory — employers and actuaries are required to follow it when certifying a scheme…

If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

  • Panel reviews

    Panel reviews 2014: The chosen ones

    Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all

  • training

    Accutrainee: Revolution postponed

    At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.

View more analysis from The Lawyer


One Bishops Square
E1 6AD

Turnover (£m): 1,234.30
No. of lawyers: 2,194 (UK 200)
Jurisdiction: UK
No. of offices: 11
No. of qualified lawyers: 369 (International 50)
No. of partners: 81