HMRC has issued its fourth Countdown Bulletin in the run-up to the abolition of DC contracting-out next April. This covers the following issues:
- In the lead-up to abolition, HMRC’s Scheme Cessation team aims to get as many DC schemes which have ceased to contract out as possible to the point where the scheme membership is agreed and any outstanding financial issues are resolved. It is writing to scheme administrators of all “ceased DC schemes” of which it is currently aware;
- A reminder is given about the validity of contracting-out certificates post-abolition, e.g. on 6 April 2012 all contracting-out certificates held by DC schemes and the DC sections of Contracted Out Mixed Benefit Schemes will be cancelled automatically; and
- In early 2013 HMRC will perform a one-off “closure” scan; this will automatically close any open DC contracted out scheme memberships. No notification will be sent to the scheme.
Here is the bulletin.