Summer Budget 2015 Changes to Pension Taxation Webinar. 16 July 2015
|
|
- Elinor Heath
- 5 years ago
- Views:
Transcription
1 Summer Budget 2015 Changes to Pension Taxation Webinar 16 July 2015
2 Introductions Paul Darlow is the Head of Proposition Development at Xafinity Steve Hobbs is an actuary, and one of our leading experts on the Annual and Lifetime Allowances 1
3 Agenda for Today 1. The Lifetime Allowance ( LTA ) a) Recap b) Latest changes c) Implications and considerations 2. The Annual Allowance ( AA ) a) Recap b) Latest changes c) Implications and considerations 3. Suggested actions 2
4 Agenda Item 1a The Lifetime Allowance - Recap 3
5 The Lifetime Allowance (LTA) A limit on the pension benefits that can be built up by an individual across his or her lifetime without being liable for a Lifetime Allowance tax charge. LTA is currently 1.25 million. Individuals can earn benefits in excess of the LTA, but they will be subject to a tax charge on any benefits in excess of the LTA. Excess A tax charge will fall due on these excess benefits Total value of benefits Lifetime Allowance 4
6 How the LTA tax charge is calculated Subject to scheme Rules, excess benefits can be paid as a cash lump sum rather than pension. Where excess benefits are paid as a cash sum they will be subject to a 55% tax charge. If excess benefits are paid as pension they will be subject to a 25% tax charge upfront. They will also be subject to income tax when paid: For a member who is a 40% tax payer in retirement the total effective tax rate on excess benefits taken as pension is 1 (1-25%) * (1-40%) = 55% Upfront 25% tax charge Income tax on receipt 5
7 How benefits are valued against the LTA Defined benefit Each 1 of pension is valued at 20 Each 1 of cash is valued at face value Defined contribution Funds are taken at market value Benefit received by member Cash lump sum of 300,000 from DB Scheme Residual DB pension of 50,000 p.a. DC fund of 200, Face Value X 20 Face Value Value on Lifetime Allowance Test 300, ,000,000 1,500, ,000 6
8 Agenda Item 1b The Lifetime Allowance - Most recent changes 7
9 Changes to the Lifetime Allowance Lifetime Allowance ( ) 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 - CPI increases from April 2018 Protection options are to be introduced for members who were planning on utilising an LTA of 1.25 million. Details are awaited. 8
10 Bringing it all together LTA Example Benefit received by member Cash lump sum of 300,000 from DB Scheme Residual DB pension of 50,000 p.a. DC fund of 200, Face Value X 20 Face Value Value on Lifetime Allowance Test 300, ,000, ,000 Value of 1,500,000 This is 500,000 above the new LTA Unless Protection is held a penal tax charge will fall due on 500,000 of excess benefits If excess benefits are taken as cash a tax charge of 55% is due. The Administrator would pay a tax charge of around 275,000 1 (55% * 500,000) to HMRC and 225,500 1 (45% * 500,000) to the member. 1 The actual mechanics are complex and depend on decisions taken by the Scheme s Trustees. This is a simplified description and illustration. 9
11 Agenda Item 1c The Lifetime Allowance - Implications 10
12 Who will be impacted by the new LTA? LTA 1 million DB pension 50,000 p.a. DC pot 1,000, year old with salary 100,000 and 30 years service in a 1/60 th scheme 65 year old with salary 150,000 and 20 years service in a 1/60 th scheme 50 year old with deferred pension currently 32,000. Likely to be worth 1,000,000 by age 65 A 25 year old with 30,000 salary and 10% contributions (on average) each year until 65* A pot of 600,000 at age 55 could become: 1.1 million at age million at age 70 with no further contributions* * Assuming 6% p.a. investment growth 11
13 Implications Members Trustees Sponsors Need to understand whether impacted or not (and when) The need to make members aware and answer questions Pensions not an efficient way of remunerating senior employees Suffer a reduction in benefit expectations (if impacted) May take action to reduce the impact: Take benefits early Maximise tax-free cash Cease accrual Stop paying AVCs Take Protection (where available) Updating booklets etc Operating additional Protection regimes Factors and procedures for paying the tax PIE at retirement less attractive to members (higher initial pension = higher LTA value) DB to DC transfers unappealing from an LTA perspective Money being paid to HMRC as tax could otherwise be used to increase member benefits, increase benefit security, or reduce company costs 12
14 Agenda Item 2a The Annual Allowance - Recap 13
15 The Annual Allowance (AA) A limit on the pension benefits that can be built up by an individual in any one year ( Pension Input Period or PIP ) without incurring an Annual Allowance tax charge. AA is currently 40,000. (Although a reduced Money Purchase Annual Allowance of 10,000 applies if members flexibly access benefits.) Individuals can earn benefits in excess of the AA, but they will be subject to a tax charge on any benefits in excess of the AA. Value of benefits earned in the year Pension Input Amount Annual Allowance Excess A tax charge will fall due on this excess accrual unless they have sufficient carry-forward of unused Annual Allowance 14
16 Carry Forward Carry Forward Unused AA from last 3 tax years can be carried forward 2013/14 AA = 50k PIA = 46k 2012/13 AA = 50k PIA = 40k 2011/12 AA = 50k PIA = 36k Unused = 4k Unused = 10k Unused = 14k Total carry forward amount into 2014 / 2015 = 28k Many high earners will already have exhausted their carry forward, but lower paid members who breach the AA due to a promotion could well benefit 15
17 How the AA tax charge is calculated Excess accrual treated as income, and subject to income tax. Tax charge can either be paid: by the member (BUT this would be paid out of post-tax income), or by the pension scheme (in which case the scheme would reduce the member s benefits by an amount equal in value to the tax due Scheme Pays ). 16
18 How benefits are valued against the AA Defined benefit Step 1 Calculate the value of benefits at the start of the year/pip, and allow for inflationary increases over the year (A) = Pension at start of year x 16 x inflationary increase over the year Step 2 Calculate the value of benefits at the end of the year, allowing for additional accrual and salary increases over the year (B) = Pension at end of year x 16 Defined contribution Contributions paid (both employee and employer contributions) Step 3 Pension Input Amount = (B) (A) An example of how this works in a DB scheme is shown on the next slide 17
19 Example Member A (significant promotion) Step 1 - Calculate the value of benefits at the start of the year, and allow for inflationary increases over the year 20/50 th (service / accrual) 60,000 (salary) 1.03 (inflation) Defined Benefit pension of 24,720 Defined Benefit pension of 24, (valuation factor) Pension value of 395,520 Step 2 Calculate the value of benefits at the end of the year 21/50 th 70,000 Defined Benefit pension of 29,400 Defined Benefit pension of 29, Pension value of 470,400 Step 3 Pension Input Amount = 470, ,520 = 74,880 18
20 Example Member B (high earner, long service) Step 1 - Calculate the value of benefits at the start of the year, and allow for inflationary increases over the year 30/50 th 125, Defined Benefit pension of 77,250 Defined Benefit pension of 77, Pension value of 1,236,000 Step 2 Calculate the value of benefits at the end of the year 31/50 th 132,000 Defined Benefit pension of 81,840 Defined Benefit pension of 81, Pension value of 1,309,440 Step 3 Pension Input Amount = 1,309,440-1,236,000 = 73,440 19
21 Agenda Item 2b The Annual Allowance - Most recent changes 20
22 Changes to the AA (1 of 2) Income (excluding pension contributions) Impacted by the changes? Details of the changes < 110,000 No Between 110,000 and 150,000 Possibly > 150,000 Yes No change Annual Allowance remains at 40,000 Need to calculate income including pension contributions (employer and employee) Adjusted Income If Adjusted Income > 150,000 then 1 of AA is lost for each 2 of Adjusted Income in excess of 150,000 (AA has a floor of 10,000) 1 of AA is lost for each 2 of Adjusted Income in excess of 150,000 (AA has a floor of 10,000) To calculate Adjusted Income, DB members need to include the Pension Input Amount (as employer and employee contributions ) 21
23 Changes to the AA (2 of 2) 45,000 40,000 35,000 Annual Allowance ( ) 30,000 25,000 20,000 15,000 10,000 5, Adjusted Income = Income plus pension contributions ( ) 22
24 Example Revisiting Member B (1 of 2) Step 1 - Calculate the value of benefits at the start of the year, and allow for inflationary increases over the year 30/50 th 125, Defined Benefit pension of 77,250 Defined Benefit pension of 77, Pension value of 1,236,000 Step 2 Calculate the value of benefits at the end of the year 31/50 th 132,000 Defined Benefit pension of 81,840 Defined Benefit pension of 81, Pension value of 1,309,440 Step 3 Pension Input Amount = 1,309,440-1,236,000 = 73,440 23
25 Example Revisiting Member B (2 of 2) Income 132,000 Pension Input Amount 73,440 Adjusted Income 205,440 Adjusted Income 205,440 Income Threshold 150,000 Adjusted Income over Threshold 55,440 Annual Allowance 40,000 Adjusted Income over Threshold 55,440 / 2 Tapered Annual Allowance 12,280 Pension Input Amount 73,440 Tapered Annual Allowance 12,280 Excess Accrual 61,160 If no carry-forward is available, a tax charge is due on Excess Accrual of 61,160 24
26 Changes to Pension Input Periods From 5 th April 2016, all Pension Input Periods will run in line with the tax year. Transitional provisions have been introduced PIP open on 8 th July 2015 New mini-pip for remainder of 2015/16 tax year Start of previous PIP 8 th July th April 2016 Annual Allowance of up to 40,000 Annual Allowance of up to 40,000 This provides individuals with the opportunity to make additional pension contributions before the reduced allowances come into force They may be able to pay up to 80,000 plus any available carry-forward in tax year 2015/16 25
27 Agenda Item 2c The Annual Allowance - Implications 26
28 Implications Members Trustees Sponsors Need to understand whether impacted or not (and when) complicated! Suffer a reduction in benefit expectations (if impacted) May take action to reduce the impact: Utilise carry-forward Stop paying AVCs Cease accrual Short-term opportunity to pay additional contributions? The need to make members aware and answer questions Updating booklets etc Additional administrative complexity of operating Scheme Pays Additional reporting requirements Pensions not an efficient way of remunerating senior employees Pay rises and promotions can cause unexpected tax charges (that can be very large) Money being paid to HMRC as tax could otherwise be used to increase member benefits, increase benefit security, or reduce company costs 27
29 Agenda Item 3 The Annual and Lifetime Allowances - Suggested actions 28
30 Suggested actions Trustees Sponsors July / August 2015 Thereafter Understand high-level impact: Number of people impacted now, and in the future, in different scenarios Expected amount of tax payable Scope out practical implications and options for this group Communicate with members Update member booklets and other Scheme documentation as appropriate Consider pension strategy for high earners Revisit (or put in place) scheme policy regarding factors to reduce members benefits (when paying tax to HMRC) Be mindful of the specific tax implications of liability management exercises for high earners 29
31 Questions? 30
32 Close A recording of this webinar (together with a copy of these slides and Q&A document) will be made available on shortly we will you when available Your usual Xafinity consultant would be delighted to answer any supplementary questions Or please feel free to contact one of us Paul Darlow paul.darlow@xafinityconsulting.com Telephone: Steve Hobbs steven.hobbs@xafinityconsulting.com Telephone:
Capgemini UK plc - Pensions Briefing Important tax changes to pensions from 6 April 2016
July 2016 Capgemini UK plc - Pensions Briefing Important tax changes to pensions from 6 April 2016 Changes to the rules governing how pensions are taxed were introduced from 6 April 2016. This notice is
More informationPension tax changes. University of Kent USS members. Jackie Holmes Towers Watson. November Towers Watson. All rights reserved.
Pension tax changes University of Kent USS members Jackie Holmes Towers Watson November 2015 2015 Towers Watson. All rights reserved. Agenda Annual Allowance changes from April 2016 The impact on your
More informationTax changes to pension savings from 6 April 2016
Tax changes to pension savings from 6 April 2016 The tax limits for pension savings are changing from 6 April 2016. Many members of the Experian Pension Scheme (EPS) are unlikely to be affected by the
More informationTax changes to retirement savings from 6 April 2016.
Tax changes to retirement savings from 6 April 2016. The tax limits for retirement savings are changing from 6 April 2016. Many members of the Experian Retirement Savings Plan (ERSP) are unlikely to be
More informationThe summaries in this leaflet are based on the legislation that is currently in place. Please read this leaflet accordingly.
Unilever UK Pension Fund Pensions tax Annual Allowance August 2017 This leaflet introduces some key aspects of the changes to the Annual Allowance pensions tax first announced by the Government in the
More informationAre you affected by the tax-free limits for retirement savings? Experian Retirement Savings Plan January 2017
Are you affected by the tax-free limits for retirement savings? Experian Retirement Savings Plan January 2017 Although many members of the Experian Retirement Savings Plan (ERSP) are unlikely to be affected
More informationMetal Box Pension Scheme (the Scheme ) DB Section and Metal Box AVC Plan (the Plan ) Annual Allowance
Metal Box Pension Scheme (the Scheme ) DB Section and Metal Box AVC Plan (the Plan ) Annual Allowance The Annual Allowance is the amount of savings individuals can make each year to registered pension
More informationHEALTH WEALTH CAREER UNIVERSITY OF ST ANDREWS PENSION TAX AWARENESS BRIEFING
HEALTH WEALTH CAREER UNIVERSITY OF ST ANDREWS PENSION TAX AWARENESS BRIEFING CONTENTS SECTION 1: PENSIONS OVERVIEW SECTION 2: ANNUAL ALLOWANCE SECTION 3: LIFETIME ALLOWANCE SECTION 4: OPTIONS FOR MEMBERS
More informationUniversity of Leicester. Pensions Tax Issues. December 2015 ADVISORY
University of Leicester Pensions Tax Issues ADVISORY December 2015 Pensions tax issues Today s Agenda Introduction Changes to Universities Superannuation Scheme (USS) Pensions tax changes Annual Allowance
More informationDear. Annual Pension Savings Statement LOCAL GOVERNMENT PENSION SCHEME TEESSIDE PENSION FUND
Dear Annual Savings Statement LOCAL GOVERNMENT PENSION SCHEME TEESSIDE PENSION FUND Please find enclosed your Savings Statement for 1 April 2014 31 March 2015, which shows the growth in your pension benefits
More informationAddendum to Limits to tax relief and tax-free benefits factsheet
Addendum to Limits to tax relief and tax-free benefits factsheet Options for members affected by the Annual and/or Lifetime allowances This addendum should be read in conjunction with the factsheet Limits
More informationNHS Pension Scheme. Annual Allowance. Pension Savings Statement Guide
NHS Pension Scheme Annual Allowance Pension Savings Statement Guide Contents About this guide 3 Why have you been sent an annual allowance pension savings statement? 4 What s in your pension savings statement?
More informationPension tax changes and what they mean for you
Pension tax changes and what they mean for you Aon Hewitt February 2016 Introduction We spoke to you in November 2015 about the changes to pensions taxation happening in April 2016: o The Lifetime Allowance
More informationNHS Pension Scheme The value of membership
NHS Pension Scheme The value of membership The full ten-point agenda 1. An overview 2. How much does the scheme cost 3. How your pension builds up 4. Keeping track of your pension 5. Protection benefits
More informationfuturefocus Tax charge on pension savings and paying through the Scheme Your questions answered
futurefocus Tax charge on pension savings and paying through the Scheme Your questions answered You can save as much as you like into a pension arrangement each year. However, there is a limit on the amount
More informationAppendix - The Annual Allowance and the Wrigley Deferred Cash Credit Promise ( Wrigley DCC Promise )
Appendix - The Annual Allowance and the Wrigley Deferred Cash Credit Promise ( Wrigley DCC Promise ) Introduction Wrigley pensions - a quick reminder The Wrigley Pension Plan (the Plan) is a final salary
More informationtechtalk TECHTALK JANUARY 2018 ISSUE 1 VOLUME 17
techtalk 1 TECHTALK JANUARY 2018 ISSUE 1 VOLUME 17 2 techtalk WELCOME TO THE JANUARY EDITION OF TECHTALK EDITOR Paul Rutkowski Paul is a senior manager within Scottish Widows, having joined the Group in
More informationWorkplace Lawyers Delivering Workplace Solutions. Budget 2016 PENSION TAX CHANGES
Workplace Lawyers Delivering Workplace Solutions Budget 2016 PENSION TAX CHANGES 2 PENSION TAX CHANGES What are the changes? With effect from 6 April 2016, there will be further changes to the rules on
More informationLGPS factsheet. Pensions Taxation - Annual Allowance
LGPS factsheet Pensions Taxation - Annual Allowance HM Revenue and Customs impose two controls on the amount of pension savings you can make without having to pay extra tax. These controls are known as
More informationBT PENSION SCHEME SECTION C. Explanatory booklet for Members who joined Section C of the BT Pension Scheme between 1 April 1986 and 31 March 2001
BT PENSION SCHEME SECTION C Explanatory booklet for Members who joined Section C of the BT Pension Scheme between 1 April 1986 and 31 March 2001 (and Section B members who elected to be subject to Section
More informationPension Contributions and Annual Allowance
Pension Contributions and Annual Allowance This topic is a must know for success in any pension exam. It is even more important now, because you have three AA regimes: normal AA ; MPAA and Tapered AA for
More informationBuying additional NITPS pension Northern Ireland
Buying additional NITPS pension Northern Ireland The NASUWT believes that the Northern Ireland Teachers Pension Scheme (NITPS), with an average employee contribution which has increased by 50 per cent
More informationMain features of Universities Superannuation Scheme A guide for independant financial advisors
Main features of Universities Superannuation Scheme A guide for independant financial advisors This guide is designed to support Independent Financial Advisors (IFAs) in their work with members of Universities
More informationAnnex 1 - Worked examples for members of the Teachers Pension Scheme
Annex 1 - Worked examples for members of the Teachers Pension Scheme February 2016 Changes to the Pension Input Period (PIP) The existing PIP for the Teachers Pension Scheme (TPS) aligns with the scheme
More informationNHS Pension Scheme Annual Allowance Pension Savings Statement Guide
NHS Pension Scheme Annual Allowance Pension Savings Statement Guide Annual Allowance pension savings statement guide-20180809-(v1) 1 Contents About this guide... 3 Why have you been sent an annual allowance
More informationNHS Pensions. The future known knowns and known unknowns
1 NHS Pensions The future known knowns and known unknowns Dale Walmsley FIA 18 November 2015 2 US Secretary of Defense, 2002..there are known knowns; there are things we know we know. We also know there
More informationNHS Pension Scheme Planning How Changes Affect Retirement Planning
NHS Pension Scheme Planning How Changes Affect Retirement Planning Hilary Salt FIA 19 November 2014 2 Planning retirement NHS Pension Scheme Annual Allowance Member choices Retirement planning Overview
More informationBT PENSION SCHEME SECTION B. Explanatory booklet for Members who joined Section B of the BT Pension Scheme between 1 December 1971 and 31 March 1986
BT PENSION SCHEME SECTION B Explanatory booklet for Members who joined Section B of the BT Pension Scheme between 1 December 1971 and 31 March 1986 (and Section A members who elected to be subject to Section
More informationAssociation of Anaesthetists of Great Britain and Ireland
Association of Anaesthetists of Great Britain and Ireland 37 th Annual Linkman Conference Your Pension Arrangements Andrea Sproates Head of BMA Services Who are BMA Services Service provided by AWD Chase
More informationNew world of retirement a new planning equation
This presentation is intended for financial planning professionals only and must not be relied on by anyone else. 2015 Standard Life New world of retirement a new planning equation Bob Gordon Pensions
More informationFREEDOM AND CHOICE IN PENSIONS MERCER
FREEDOM AND CHOICE IN PENSIONS CONTENT ACCESS TO FREEDOM AND FLEXIBILITY FIONA DUNSIRE UK Market Leader and Chief Executive Officer THE NEW DC WORLD ROGER BREEDEN Product Leader DC & Savings Team DB TO
More informationVoluntary Scheme Pays in the Firefighters Pension Schemes.
Voluntary Scheme Pays in the Firefighters Pension Schemes. Introduction 1. This update document provides further information on Scheme Pays and steps necessary to implement Voluntary Scheme Pays in respect
More informationLGPS factsheet. Pensions Taxation - Annual Allowance
LGPS factsheet Pensions Taxation - Annual Allowance HM Revenue and Customs impose two controls on the amount of pension savings you can make without having to pay extra tax. These controls are known as
More informationEnd of the waiting game
Page 1 of 6 CORPORATE UPDATE FOURTH QUARTER 2010 End of the waiting game benefit, relative to the system introduced from April 2006. Nevertheless, some change was inevitable, and the new regime is more
More informationNHS Professionals. Introduction. Key Features of the 2015 Scheme RETIREMENT PLANNING RETIREMENT PLANNING
Simon Bell Associate Partner St. James s Place Wealth Management Telephone: 07971 087 703 Email: simon.bell@sjpp.co.uk Website: www.sjpp.co.uk/simonbell RETIREMENT PLANNING NHS Professionals Introduction
More informationTHE XYZ Pension and Life Assurance Scheme. Members Booklet April 2018 Edition. For Employees of the XYZ Company
THE XYZ Pension and Life Assurance Scheme Members Booklet April 2018 Edition For Employees of the XYZ Company Reviewed May 2018 1 CONTENTS Page 3 OVERVIEW 4 TERMS USED IN THIS BOOKLET 8 GENERAL 9 CONTRIBUTIONS
More informationTECHTALK. If your client can only make personal contributions, they will be limited by the higher of their relevant UK earnings or 3,600.
TECHTALK This article originally appeared in JAN 18 edition of techtalk. Please visit www.scottishwidows.co.uk/techtalk for the latest issue. REACH YOUR LIMIT: TAX YEAR END PENSION PLANNING Your employed
More informationTel: Web:
Tel: 0161 940 9000 Email: mail@arctrustees.co.uk Web: www.arctrustees.co.uk 1 Introduction... 3 What is a SSAS?... 3 Why choose a SSAS?... 3 How is a SSAS set up?... 4 What are the Tax Benefits of a SSAS?...
More informationTECHTALK FEBRUARY 2016 ISSUE 3 VOLUME 15 TAX YEAR END PENSIONS SPECIAL EDITION
TECHTALK FEBRUARY 2016 ISSUE 3 VOLUME 15 TAX YEAR END PENSIONS SPECIAL EDITION EDITOR CONTENTS Sandra Hogg Sandra is the senior tax manager within Scottish Widows with 17 years of hands on experience dealing
More informationPension transfers. AF7: edition. Web update 3: 24 November Web update. Chapter 2, section D2, example 2.2, page 2/16. Example 2.
Pension transfers AF7: 2017 18 edition 3: 24 November 2017 Please note the following update to your copy of the AF7 study text: Chapter 2, section D2, example 2.2, page 2/16 Replace example 2.2 and the
More informationC3.01: INDIVIDUAL PENSIONS ELIGIBILITY, LIMITS AND TAX RELIEF
C3.01: INDIVIDUAL PENSIONS ELIGIBILITY, LIMITS AND TAX RELIEF SYLLABUS Eligibility Annual limit for relief Obtaining tax relief Anti-forestalling Practical application of tax relief Annual Allowance Lifetime
More informationUK Pensions Trustee Agenda
Winter 2015 UK Pensions Trustee Agenda In this issue: > > Annual allowance changes: How they work > > DC Governance: Employer obligations and DC investment choices > > Protected pension ages a reminder
More informationLTA excess options to consider
LTA excess options to consider As the lifetime allowance (LTA) has reduced more people have to decide the options they have concerning any excess they may have. Below are basic examples of options a client
More informationGETTING THE MOST FROM YOUR PENSION SAVINGS
GETTING THE MOST FROM YOUR PENSION SAVINGS 2 Getting the most from your pension savings CONTENTS 04 Two types of pension 05 Tax and your pension An overview 05 Who can pay into a pension? 05 How does tax
More information30 MINS CPD COURSE PROTECTION OF PRE-A-DAY BENEFITS: ENHANCED PROTECTION
30 MINS CPD COURSE PROTECTION OF PRE-A-DAY BENEFITS: ENHANCED PROTECTION PART II ENHANCED PROTECTION THE INTRODUCTION OF THE LIFETIME ALLOWANCE ON 6TH APRIL 2006 LED TO A RANGE OF COMPLEX TRANSITIONAL
More informationEmployer consultation Consultation with affected employees on proposed changes to the Universities Superannuation Scheme
Employer consultation 2015 Consultation with affected employees on proposed changes to the Universities Superannuation Scheme The proposed changes a brief summary DB Section Salary link for past service
More informationCARE. A Guide for Defined Benefit Members
CARE A Guide for Defined Benefit Members A Guide for Members The CARE Scheme closed to the build up of benefits on 31 March 2016. This booklet provides basic information about the DB structures of the
More informationSummer Budget 2015 the changes to the Lifetime and Annual Allowance, some of them immediate
Page 1 of 9 News Alert 2015/01 30 July 2015 this is an updated version of that issued on 10 July 2015 Summer Budget 2015 the changes to the Lifetime and Annual Allowance, some of them immediate At a glance
More informationNEW AIRWAYS PENSION SCHEME AND AIRWAYS PENSION SCHEME OPERATING RULES OF THE SCHEME PAYS FACILITY 1. INTRODUCTION... 1
NEW AIRWAYS PENSION SCHEME AND AIRWAYS PENSION SCHEME OPERATING RULES OF THE SCHEME PAYS FACILITY TABLE OF CONTENTS 1. INTRODUCTION... 1 2. DEFINITIONS... 2 2.1 SCHEME DEFINITIONS APPLY... 2 2.2 ANNUAL
More informationEmployer Pensions Notice EPN 133
Employer Pensions Notice EPN 133 Important! Tax simplification Summary of changes Audience This Notice will be of particular interest to: HR Managers; pay and policy teams Payroll managers Actions o To
More informationThe University of Warwick Pension Scheme Defined Benefit Section. Explanatory Booklet
The University of Warwick Pension Scheme Defined Benefit Section Explanatory Booklet The University of Warwick Pension Scheme Defined Benefit Section - Explanatory Booklet Contents Page Explanation of
More informationKey Features of the Stakeholder Pension Plan
Key Features of the Stakeholder Pension Plan The Financial Conduct Authority is a financial service regulator. It require us, Police Mutual, to give you this important information to help you to decide
More informationSelf-Invested Pensions Seminars
Technical takeaway Self-Invested Pensions Seminars This technical takeaway complements the self-invested pensions update given during our seminars held in April and May 2016 and includes articles on this
More informationThe Yorkshire and Clydesdale Bank Pension Scheme Booklet
The Yorkshire and Clydesdale Bank Pension Scheme Booklet This booklet is your guide to the Yorkshire and Clydesdale Bank Defined Benefit Pension Scheme. It tells you about the range of benefits you re
More informationIn this edition of the Trustee report, we review the updates from this year s March Budget and how these changes might affect your retirement plans.
DUN & BRADSTREET 2015 Trustee Report In this edition of the Trustee report, we review the updates from this year s March Budget and how these changes might affect your retirement plans. These changes are
More informationImportant changes to pension tax relief that could affect you.
Important changes to pension tax relief that could affect you. 2 Important changes to pension tax relief Allen & Overy LLP 2010 3 New laws which restrict the current levels of tax relief on pension savings
More informationChoosing between the BTRSS and the new BT Hybrid Scheme
Page 1 of 17 Choosing between the BTRSS and the new Your questions and answers Making a choice Making a choice Making a choice What happens if I do nothing? I m on maternity/ paternity/sick leave/leave
More informationtechnical eye Retirement Income Special Edition
For professional advisers only technical eye Retirement Income Special Edition Transitional Pension Input Periods Tapered annual allowance Retirement income solutions (the blended approach) Transferring
More informationIn Depth. Pot luck? Budget proposes significant changes to the taxation of retirement savings. April 2014
In Depth April 2014 Pot luck? Budget proposes significant changes to the taxation of retirement savings In a nutshell The 2014 Budget included proposals to provide significantly more choice for those with
More informationPensions Flexibility Taxation Proposals
2014/28 14 August 2014 Pensions Flexibility Taxation Proposals Introduction On 6 August 2014, the Government published some of the detail behind its taxation proposals for the defined contribution (DC)
More informationDecember Perkins Staff Section
December 2007 Perkins Staff Section Any questions? We have tried to keep the explanation of the benefits as simple as possible, so you should consider this booklet as only a guide to the Perkins Staff
More informationAnnual Allowance 2011/12 & 2012/13 Frequently Asked Questions
Annual Allowance 2011/12 & 2012/13 Frequently Asked Questions These Frequently Asked Questions are spilt up into sections. They should be read in conjunction with the other materials provided on the HSC
More informationHelping you save: Your guide to the University of Edinburgh Staff Benefits Scheme. May Edinburgh_University booklet v2.
Helping you save: Your guide to the University of Edinburgh Staff Benefits Scheme May 2017 1 10824 Edinburgh_University booklet v2.indd 1 09/05/2017 14:25 Introduction You may have just started your career,
More informationO P Q RETIREMENT & DEATH BENEFITS PLAN. For Employees of The OPQ Company MEMBERS' BOOKLET
O P Q RETIREMENT & DEATH BENEFITS PLAN For Employees of The OPQ Company MEMBERS' BOOKLET APRIL 2017 EDITION Reviewed December 2017 CONTENTS PAGE 2 INTRODUCTION 3 DEFINITIONS 6 FREEDOM AND CHOICE 8 JOINING
More informationA Guide to the Local Government Pension Scheme for Councillors in Scotland
A Guide to the Local Government Pension Scheme for Councillors in Scotland April 2017 Index 1. About this Booklet pg 4 2. About the Local Government Pension Scheme (LGPS) pg 5 Who runs the LGPS? LGPS rules
More informationProposed Pension Changes Questions and Answers (Q&A3)
THE METAL BOX PENSION SCHEME Proposed Pension Changes Questions and Answers (Q&A3) Thank you for all your questions. We have tried to cover as many as possible of those received up to 19 October. If you
More informationAvestaPolarit Pension Scheme Defined Benefit/Final Salary Section
AvestaPolarit Pension Scheme Defined Benefit/Final Salary Section Members' handbook Members in employment with Outokumpu Stainless Limited on 31 March 2003 1 Contents Section 1: Section 2: Section 3: Section
More informationTECHTALK 40,000 FEBRUARY 2017 ISSUE 2 VOLUME 16 TAX YEAR END SPECIAL EDITION
TECHTALK FEBRUARY 2017 ISSUE 2 VOLUME 16 TAX YEAR END SPECIAL EDITION 40,000 EDITOR CONTENTS Sandra Hogg Sandra is the senior tax manager within Scottish Widows with 17 years of hands on experience dealing
More informationLegislative Update. August Legislation (http://www.legislation.gov.uk) Finance Act Pensions Act 2014
Legislative Update August 2014 Legislation (http://www.legislation.gov.uk) Finance Act 2014 The key provisions to note in this Act are: Withdrawal arrangements: From 27 March 2014, the annual cap on withdrawals
More informationTechnical Bulletin January 2016
Technical Bulletin January 2016 In a world where change is the only constant, we help you keep on top of the developments in financial services regulation, legislation and environment. Here s what happened
More informationNortel Networks UK Pension Plan ( the Plan )
F12 Nortel Networks UK Pension Plan ( the Plan ) Glossary Factsheet Additional Recoveries Arrears payment Following the insolvency of Nortel Networks in January 2009, the Trustee has taken various actions
More informationA GUIDE TO PENSION WITHDRAWAL TAKING BENEFITS UNDER NEW PENSION FREEDOM RULES
A GUIDE TO PENSION WITHDRAWAL TAKING BENEFITS UNDER NEW PENSION FREEDOM RULES OPTIONS AND CONSIDERATIONS FOR ACCESSING PENSION BENEFITS The aim of this guide is to provide a basic overview of the options
More informationAvon Pension Fund Local Government Pension Scheme
Avon Pension Fund Local Government Pension Scheme Post: Avon Pension Fund, Bath & North East Somerset Council, Lewis House, Manvers Street, Bath, BA1 1JG Web: www.avonpensionfund.org.uk Tel: 01225 477000
More informationLocal Government Pension Scheme August 2015
Local Government Pension Scheme August 2015 Inside this issue: Welcome to the latest edition of our annual pensions newsletter for active members of the Local Government Pension Scheme. By now you will
More informationProposed changes to your future pension benefits. A guide for BTPS managers November 2017
Proposed changes to your future pension A guide for BTPS managers November 2017 CONTENTS page 1 Introduction 2 The proposed changes and what they mean to you 4 Why we need to make changes 5 Why we ve proposed
More informationYour Pension Arrangements
Your Pension Arrangements Who are BMA Services Independent financial advice only for BMA members Service provided by Chase de Vere - ALL welcome to attend seminars and briefings - Personal advice only
More informationPolice Pension Scheme
Police Pension Scheme Police Pension Scheme The Payroll & Pensions Department Kent Police & Essex Police North Kent Police Station Thames Way Northfleet Kent DA11 8BD Your Annual Benefit Illustration Police
More informationCapita Group Money Purchase Scheme
Capita Group Money Purchase Scheme Retirement Booklet Contents Introduction 3 When do you want to retire? 4 Annuity (Secured Income) 5 Flexi-Access Drawdown (Variable Income) 9 Cash Lump Sums (known as
More informationPension Tax Changes Survey Summer Budget 2015
www.pwc.com Pension Tax Changes Survey Summer Budget 2015 December 2015 Foreword Pension Tax Changes Survey Foreword Philip Smith Thank you for taking the time to participate in our Pension Tax Changes
More informationProtection from the Lifetime Allowance Charge
clarityresearch Protection from the Lifetime Allowance Charge Summary A new pensions saving regime was implemented on A Day 6 April 2006. The concept of the Lifetime Allowance was introduced at that time
More informationPENSIONS POLICY INSTITUTE
The Pensions Primer: A guide to the UK pensions system Third-Tier Provision Updated as at July 2013 The Pensions Primer: a guide to the UK pensions system Overview of private pension provision 1 Employer-sponsored
More informationLocal Government Pension Scheme (Scotland) Limit on Additional Cash Commutation
Date: 26 February 2015 Authors: Ian Boonin FIA Neville Hosegood FIA Contents page 1 Introduction 1 2 Background and Guidance 3 3 Examples of commutation calculations 7 Cited Regulations 10 Legislative
More informationYOUR GUIDE TO DEFINED BENEFITS FROM THE EXPERTS OF TECHTALK
YOUR GUIDE TO DEFINED BENEFITS FROM THE EXPERTS OF TECHTALK TECHTALK This article originally appeared in SEP 16 edition of techtalk. Please visit www.scottishwidows.co.uk/techtalk for the latest issue.
More informationFinancial Planning Report
{{TOC}} Financial Planning Report Prepared for: ABC Limited Prepared by: Independent Financial Adviser PPOL Penylan Mill Coed-y-Go Oswestry Shropshire SY10 9AF 06/04/2016 SUITABILITY REPORT Different Introductions
More informationFrequently Asked Questions. Northern Bank Defined Benefit Pension Scheme
Frequently Asked Questions Northern Bank Defined Benefit Pension Scheme 29 June 2017 FREQUENTLY ASKED QUESTIONS Northern Bank Defined Benefit Pension Scheme 1. What is the FSU s position on the closure
More informationDEFINED BENEFIT SECTION ACTIVE AND DEFERRED MEMBERS
THE METAL BOX PENSION SCHEME METAL BOX NEWSLETTER MEMBERS REPORT WINTER 2017/18 DEFINED BENEFIT SECTION ACTIVE AND DEFERRED MEMBERS In this issue... MND UPDATE VALUATION UPDATE SUMMARY REPORT & ACCOUNTS
More informationPolice Pension Scheme
Police Pension Scheme Police Pension Scheme The Payroll & Pensions Department Kent Police & Essex Police North Kent Police Station Thames Way Northfleet Kent DA11 8BD Your Annual Benefit Illustration Police
More informationPension allowance cuts protect and serve
This presentation is intended for financial services professionals only and must not be relied on by anyone else. 2013 Standard Life Pension allowance cuts 2014 - protect and serve Bob Gordon Technical
More informationUniversity of Aberdeen Superannuation and Life Assurance Scheme. Member Consultation
University of Aberdeen Superannuation and Life Assurance Scheme Member Consultation Your guide to the proposed changes to your future pension benefits June 2018 Contents Page 1 Introduction 2 2 UASLAS
More informationPensions update for universities
Spring 2015 Pensions update for universities Welcome to the latest issue of our pensions update for universities. Pensions remain at the forefront of discussions, with changes to the USS, LGPS and TPS
More informationIntroduction. General rules. Lifetime allowance. Transitional protection
Pensions tax rules Introduction Since 6 April 2006 (known as A day ) all pension schemes have been governed by a single set of tax rules that were intended to simplify the legislation. However, since the
More informationYour scheme guide. futurefocus D. Please note the following important information.
Your scheme guide Please note the following important information. Ill health benefits The information on ill health benefits in this guide is out of date. Please refer to the Bank s Group Income Protection
More informationTax-efficient investments for business owners. An Octopus guide for professional advisers
Tax-efficient investments for business owners An Octopus guide for professional advisers Important information For professional advisers only and not to be relied upon by retail investors. The value of
More informationNHS Pensions - Scheme Pays Election guidance notes
NHS Pensions - Scheme Pays Election guidance notes These notes are to help you when considering whether to make a Scheme Pays election for the 1995/2008 NHS Pension Scheme and/or 2015 NHS Pension Scheme
More informationBT PENSION SCHEME ADDITIONAL VOLUNTARY CONTRIBUTIONS (AVC) GUIDE
BT PENSION SCHEME ADDITIONAL VOLUNTARY CONTRIBUTIONS (AVC) GUIDE Important Information This document provides an overview of the Additional Voluntary Contribution (AVC) options available to active members
More informationTHE EDF ENERGY PENSION SCHEME. A guide for new joiners
THE EDF ENERGY PENSION SCHEME A guide for new joiners January 2016 CONTENTS Welcome 3 CARE Section 4 At a glance How it works Membership and contributions Building retirement benefits today Building retirement
More informationChanges to USS an update
Changes to USS an update From 1 April 2016, the benefits provided by Universities Superannuation Scheme are changing, as are the contribution levels payable by employers and members. Since 2011 the scheme
More informationAppendices. Appendix 1 - Annual allowance Appendix 2 - Lifetime allowance Appendix 3 - Q&A
Appendices Appendix 1 - Annual allowance Appendix 2 - Lifetime allowance Appendix 3 - Q&A Appendix 1 Annual Allowance 1 1.1. Key elements to determine your annual allowance threshold income versus adjusted
More informationRestricting pensions tax relief Government policy decisions on the reduced annual and lifetime allowances. slaughter and may.
Restricting pensions tax relief Government policy decisions on the reduced annual and lifetime allowances slaughter and may October 2010 Contents A. Summary of key Government decisions 01 B. How accurate
More informationFinancial Planning Report
{{TOC}} Financial Planning Report Prepared for: ABC Company Prepared by: Mr PPOL REMOTE DEMO Independent Financial Adviser PPOL 25/11/2014 SUITABILITY REPORT Introduction and Basis of Advice I am authorised
More information