Brexit round-up – 09/04/21

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Pensions Regulator updates cross-border schemes guidance

The Pensions Regulator has updated its Brexit-related guidance for UK cross-border occupational pension schemes and UK employers that are contributing to occupational pension schemes established outside the UK. The main changes relate to the duties on a UK employer if they are using a non-UK occupational or personal pension scheme to comply with their statutory auto-enrolment (AE) obligations. The updated guidance clarifies that whether an employer can continue using an EU/EEA scheme for AE purposes from the end of the Brexit transition period on 31 December 2020 will depend on whether the scheme is an “automatic enrolment scheme” or a “qualifying scheme.” In particular, it is no longer possible for an employer to use a non-UK scheme (including an EU/EEA scheme) as an automatic enrolment scheme to satisfy its AE duties. The guidance reminds employers that it they were therefore using an EU/EEA based scheme as an automatic enrolment scheme at the end of the Brexit transition period, immediate automatic re-enrolment will have been triggered on 1 January 2021. However, if an employer’s EU/EEA or other non-UK scheme was a qualifying scheme at the end of the Brexit transition period, the employer may be able to continue using the scheme. The scheme must still meet the relevant quality requirements in the PA 2008 and other prescribed requirements for non-UK qualifying schemes. Further, the guidance reminds employers that, even if they continue using a non-UK qualifying scheme, they will also need to have an automatic enrolment scheme in place for any new joiners who meet the relevant AE criteria.

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Commons Select Committee launches inquiry into scrutiny of international treaties

The House of Commons Public Administration and Constitutional Affairs Select Committee has issued a call for evidence for an inquiry into the scrutiny of international treaties and other international arrangements. The deadline for submissions is 6.00 pm on 7 June 2021. The Committee observes that, while the UK was a member of the EU, the EU had the power to negotiate and conclude treaties, which were binding on the UK. These treaties were scrutinised at EU level, and the House of Commons European Scrutiny Committee provided a forum for UK scrutiny in Parliament. Now that these scrutiny mechanisms are no longer in place, Parliament has no role in setting the negotiating objectives for an agreement, monitoring the progress of negotiations, or overseeing its implementation. The House of Commons is reliant on existing Committees being able to scrutinise treaties on a case-by-case basis. The inquiry will look at the role and purpose of treaties and international agreements in the 21st century as well as constitutional relationships and the balance between Parliament and government in developing, agreeing and implementing international treaties. It will also consider the effectiveness of current scrutiny mechanisms and whether the Constitutional Reform and Governance Act 2010 and constitutional conventions currently enable effective parliamentary scrutiny of international treaties and other agreements and whether these conventions need to be formalised. It will also consider the role of Parliament, and the House of Commons in particular, at different stages of the treaty-making and implementation process, and in relation to different types of treaties and information and resourcing requirements.

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If you have any questions about any of the issues which are raised, or would like to discuss your own organisation’s options during the Brexit process, please do not hesitate to get in touch.