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Despite what we had been led to believe by last summer’s consultation and by the announcement in the Autumn Statement, the Chancellor resisted the temptation to make further changes to the pensions taxation regime in the Budget. LISAs He did, however, introduce a new savings vehicle – the Lifetime ISA, or “LISA” – for the […]

The Department for Work and Pensions (DWP) has responded to the consultation issued early last year.  It plans to implement a secondary market for annuity holders to sell their annuity to a third party, with effect from 6 April 2017.  The DWP acknowledges in the paper that retaining their annuity will be the most suitable […]

The Pensions Regulator’s Code of Practice 3, on funding defined benefit pension schemes, stresses the importance of having an integrated approach to setting investment and funding strategies, taking account of the strength of the sponsoring employer’s covenant.  TPR has now issued practical guidance on what such an integrated approach should look like.  The guidance is […]

Introduction Since the Pensions Regulator (TPR) published its code of practice 13: Trust-based Defined Contribution (DC) Schemes in 2013, the legislative landscape has changed drastically, with: individuals now having much more flexibility around how they may take their DC benefits at retirement and new legislative standards with which DC schemes have to comply. TPR is, […]

The Government issued a consultation during the summer, seeking the views of pension specialists regarding potential barriers to individuals taking advantage of the new pension freedoms and on the circumstances in which individuals should take financial advice.  At the same time it issued a survey for individual consumers to share their experience of accessing the […]

The Pensions Regulator has updated its guidance for trustees on assessing the employer covenant.  This is not a short document – running to 66 pages; however, the last 13 pages are relevant only to not-for-profit organisations and multi-employer schemes for non-associated employers. The Regulator recommends that, as a minimum, all trustees read: “At a glance” […]

The Equality Act 2010 contains a dispensation for occupational pension schemes, which allows them to calculate dependants’ pensions for surviving civil partners and same-sex spouses based only on service since December 2005, plus an addition of 50% of the GMP accrued by the member between April 1988 and December 2005. An employment tribunal case in […]

With effect from 1 October 2015 defined contribution schemes will no longer have the ability to pay a refund of contributions to a member who leaves the scheme within two years, unless he has less than 30 days’ membership. Background Since 1988 members of trust-based occupational pension schemes have had to complete at least 2 […]

The International Accounting Standards Board (IASB) is proposing changes to IAS 19 and IFRIC 14 – the international accounting standards that govern the way in which companies account for their defined benefit pension scheme and other post-retirement benefits. Recognition of a surplus The current rules allow a company to recognize a surplus in the pension […]

As heralded widely in the run-up to the General Election, in the Summer Budget, delivered on 8 July, George Osborne confirmed the introduction of a transferable £175,000 Inheritance Tax allowance for a family home, on top of the existing threshold.  This is to be paid for by further restrictions on tax-relieved pensions saving. Annual allowance […]