EPN 512 detailed that employers would take over making cash exit payments from April 2018. This coincided with the date when cash exit payments in excess of £30,000 would become eligible for employer National Insurance contributions.
HM Treasury has since announced that employer National Insurance payments will not apply to cash exit payments until April 2019.
Due to the HM Treasury delay, the Scheme Administrator will now continue to make cash exit payments up to and including 31 December 2018, not April 2018 as previously announced.
This will enable employers to take over responsibility for making cash exit payments prior to the requirement to deduct employer National Insurance contributions. It is consistent with the scheme’s preference to change to employers being responsible for making cash exit payments regardless of the changes to National Insurance.
1. Next steps
You will need to review your plans to start making cash exit payments and revise your plans to arrange for your payroll or payroll providers to start making cash exit payments from 1 January 2019, including deducting and paying HMRC income tax.
From 6 April 2019 your payroll or payroll providers will also need to deduct employer National Insurance due on cash exit payments and pay them to HMRC (subject to planned HM Treasury legislation).
We will publish further information about the change, including roles, responsibilities, more detail about the transition and guidance regarding information sharing between employers and the Scheme Administrator in due course.
If you need to speak to the Scheme Administrator about your exit scheme please contact email@example.com
For Cabinet Office approval of new or revised VE schemes, in the usual way please contact firstname.lastname@example.org
If you have a question about the distribution of EPNs or you need to receive them in a different format contact email@example.com
You can find electronic copies of the Employers’ Pension Guide, all current EPNs and forms on our website www.civilservicepensionscheme.org.uk under ‘Employers’.
This notice is for employers and should not be issued to scheme members.
If members have a question about their pension they can find information at: