Reply To: CTS scheme changes

#287003
Jon__Blackwell
Participant

Re: Tolerances:-

Examples of working-age CTR schemes with tolerances/de minimis for CoCs of one sort or another include…

Bradford
Norwich
North Somerset
New Forest
South Holland
South Norfolk
Test Valley
Tewkesbury
West Berkshire

… there are probably several others. ( I appreciate this is an answer to a broader question than just earnings-related tolerances).

Re: CTR non-dep deductions

More than half of 2024/25 CTR schemes maintain working-age non-dep deductions that mirror the pension-age NDDs (as set out in the prescribed requirements regulations.)

Of the rest, the single most common modification is to remove working-age NDDs altogether.

There are number of flat-rate NDDs schemes but they’re not massively common ( some are purely flat-rate – ~9% and others flat-rate but maintain the traditional nil deductions for NDs on certain IRBs – 5%.) There are also some 2-rate high/low NDDs schemes ( again, with or without a nil rate ). There are also sorts of otheridiosyncratic approaches beyond this but they’re not widely adopted. A couple of outliers now very large CTR NDDs – perhaps caused by new staff misunderstanding their precedessors decisions.

Not surprisingly, very few LAs have amended the pension-age NDDs – you’d need to be careful that any change you make isn’t UV. (Which every current flat-rate scheme would potentially be if applied to pension-age.)