A new age for accessing DC retirement savings moves a step closer

Size: px
Start display at page:

Download "A new age for accessing DC retirement savings moves a step closer"

Transcription

1 Page 1 of 7 News Alert 2014/07 23 July 2014 A new age for accessing DC retirement savings moves a step closer At a glance On 21 July 2014 the Government announced its main decisions following the March Budget consultation on introducing Freedom and choice in accessing defined contribution (DC) retirement savings. More choice and flexibility must be good news for pension savers and will encourage more savings. Details that might be important are still awaited, but trustees, scheme managers and sponsoring employers of any type of pension scheme need to start planning now for the new possibilities and responsibilities of wide ranging implications that will open up in just eight months time. Key Actions Pension managers DC trust based review your scheme s retirement options with a view to introducing greater flexibility in April 2015 or decide to give access solely by transfer. DC contract based check what your provider will offer. DB be ready for a likely increase in transfer requests close to retirement as some members wish to move to DC schemes to take advantage of the new flexibilities. All cases communicate with members now about the coming changes, and review all communications Trustees and Employers DC review any lifestyle investment strategies (particularly any default option that assumes members are aiming to buy an annuity at a fixed retirement age). The new flexibilities could sweep away the previous rationale for these. DB consider new possibilities for member options and one-off bulk exercises that will help manage risk in the scheme, such as small sum cash-out to retirees and current pensioners aged 55 or more.

2 Page 2 of 7 These are just a few of some possible actions to respond to what is a substantial change in the pension landscape. The Detail From next April those with defined contribution 1 (DC) retirement savings will be able to access them with much greater flexibility than at present. They will still be able to take part as a tax-free lump sum; and in addition to taking the balance as a lifetime annuity, will have the choice (if their scheme permits) to access it through much more flexible drawdown rules, including, crucially, taking the entire balance in one go in either case, being subject to income tax on this balance at their marginal rate(s). From next April DC schemes will be able to deliver retirement income in a much more flexible manner In this News Alert we summarise the government s latest decisions, including its allimportant conclusion that there should be no ban on private sector defined benefit (DB) to DC transfers (so DB members can also access the flexibility). We also set out some initial thoughts on what they mean for DC and DB schemes, their members and their sponsoring employers. The government will take forward two separate pieces of legislation in the autumn in order to deliver these reforms the Pension Schemes Bill and the Pensions Tax Bill. Until we see the proposed legislation, particularly in the Tax Bill (for which a technical consultation is promised shortly ), a lot of the important detail remains uncertain. Designing the new tax framework The government needs to adjust the pension tax framework in order to deliver the flexibility it seeks. The key changes are discussed below. Providing access to flexibility for DC benefits The government intends to introduce a permissive statutory override that will enable all schemes to change their rules to permit these new flexibilities to be used for DC benefits where the rules otherwise prevent this. However, this override is not mandatory and so trustees and managers can choose whether, and the extent to which, to introduce the new flexibilities. Two measures will be implemented whose purpose is to provide those with DC benefits access to the new flexibilities Given that adjusting schemes is not mandatory the government will extend the right of members of DC schemes to transfer their benefits to another DC scheme right up to their normal retirement age. Currently, DC members do not have a right to transfer once they are within one year of their retirement date. (There is no news as to whether this 1 For this purpose defined contribution means both money purchase and cash balance savings. A hybrid arrangement may also be defined contribution but this will depend on its nature at the time benefits are taken. Those with AVCs will also be able to access them flexibly, subject to their pension scheme rules.

3 Page 3 of 7 extension will also apply to DC benefits within DB schemes, or indeed all rights within DB schemes.) Enabling insurers to innovate The government believes that many of the pension taxation rules in relation to lifetime annuities need to be adjusted to encourage innovation, thus allowing insurers to develop new retirement income products that meet the needs of modern society. Therefore the government intends to make changes that will enable lifetime annuities to: decrease (so that, for example, annuity payments can reduce when an individual becomes eligible for the State Pension); The tax rules surrounding lifetime annuities will be opened up to encourage insurers to deliver more flexible retirement income solutions have lump sums taken from them (such as to meet care needs), if so specified in the contract at the point of purchase; contain a guarantee period greater than ten years, so that more of an individual s fund can be returned to their dependants on their death; and allow the balance of any guarantee to be paid as a lump sum where it is under 30,000. Limiting the scope for abuse of pension contribution tax relief The government is concerned that this new DC retirement income flexibility could lead to abuse by those over 55 diverting part of their salary into DC retirement savings, only to immediately withdraw it thus avoiding national insurance contributions and picking up 25% of the diverted salary free of income tax. To prevent this, the government is introducing a new and conditional 10,000 DC pseudo annual allowance. Some of the detail of this is unclear, but it seems that once an individual cashes out more than their tax-free lump sum from any DC retirement savings pot that is worth more than 10,000 (including the lump sum) they will only be able to gain tax relief on further contributions to DC retirement savings vehicles up to 10,000 pa in aggregate. The DC flexibilities enable those aged 55 and above to engage in abusive practices the government intends to limit their scope through introducing a conditional 10,000 DC pseudo annual allowance It seems that the current 40,000 annual allowance remains in place across all schemes, so anyone triggering the 10,000 pseudo annual allowance continues also to be tested against the 40,000 annual allowance (with separate tax charges potentially arising). We hope that this new allowance will be kept as simple as possible to understand and to manage for example, no complex carry forward. The new allowance lessens, but does not eliminate, the scope for manipulation of the tax rules. However, the government warns that it will be closely monitoring behaviour under the new system.

4 Page 4 of 7 Normal Minimum Pension Age to increase but not quite yet The government is pursuing its plans to increase Normal Minimum Pension Age (NMPA), the earliest age at which retirement savings can be accessed, from 55 to 57 in Thereafter it will rise in line with State Pension Age so that it is always ten years below. This will apply to both private sector and public service schemes, other than the Fire-fighters, Police and Armed Forces schemes. The age at which retirement benefits can be taken will be tied to State Pension Age but there is to be no legislation in this Parliament The government is considering whether there should be protections for those who have built up savings with a right to take benefits from an earlier pension age. Given this, the government does not intend to legislate on NMPA in this Parliament. Reducing the tax rate on unutilised funds on death The government reaffirms its view that the current tax rate of 55% for funds within drawdown products on death or un-crystallised pension funds on death after age 75 is too high, given the new flexibilities from April But due to the complexity of this area the government is still considering its options and will make a further announcement in the Autumn Statement % is too much to charge on unutilised funds on death, but the Government has yet to decide on the new rate Impact of DC flexibility on means-tested welfare and social care benefits Introducing DC flexibility has important implications for certain means-tested benefits. The government intends that capital held in drawdown type products will continue to be excluded from the capital means tests, but treated as generating a notional income for the purpose of the income means tests. To that end it will examine the notional income rules for consistency between drawdown products and annuities, with any changes being made before the new rules are published in October. The government intends to address welfare entitlement inconsistencies arising from replacing potential income with capital held within drawdown products Capital held within retirement products that have yet to crystallise should continue to be ignored from both the capital and income tests. As capital actually drawn down will count in the capital tests, the government cautions that those who choose to draw down their DC pot quickly will need to consider how it could affect their entitlement to welfare and social care support. These matters will be one aspect covered under the guidance guarantee. Providing DC members with access to free and impartial guidance The government s key safeguard for the successful delivery of DC retirement income flexibility is a properly functioning new guidance guarantee service available at retirement to all individuals with DC savings. Some more detail of this policy has emerged but there is still a lot of work to be done to get this running by April More detail is given on the guidance guarantee, but much more work needs to be done The guidance will be provided by independent organisations including the Pensions Advisory Service and the Money Advice Service, as well as possibly

5 Page 5 of 7 other consumer-facing organisations this is to avoid actual or potential conflicts of interest in order to ensure complete impartiality; The guidance will be delivered through a strong, recognisable brand across all providers of the service in order to distinguish it from sources of information or other services; The government intends that measures should be implemented to enable individuals to have drawn together information about all their pension wealth ahead of accessing the service; The proposed face-to-face guidance is now one of a number of communication methods, such as online or telephone support; All DC schemes will be required to signpost their members towards the service (through amending the disclosure requirements for DC occupational schemes); Standards for the guidance will be set by the FCA and its operation will fall under a new FCA standards regime; and The on-going costs will be funded by a new FCA-collected levy on regulated financial services firms (the initial preparatory costs of 20m are being met by the Treasury) it therefore seems that occupational schemes will not have to contribute directly. The government states that every individual with defined contribution pension savings will be able to access this guidance. Therefore, on the face of it a member of a DB pension scheme with DC AVCs will be eligible. Enabling DB scheme member to access the DC flexibilities One of the Government s key concerns in delivering DC retirement income flexibility was that this could introduce instability within DB pension schemes and through this on to financial markets. Significantly it has been persuaded that this is unlikely to be the case. No ban on private sector DB to DC transfers, but the member must take advice and trustees will receive new guidance The government has listened to the overwhelming majority of responses it received and has decided not to implement a ban on transfers from private sector DB schemes to DC schemes. The status quo also remains for transfers of DB pensions in payment a transfer to a DC scheme is an unauthorised payment with penal tax charges. The government refers to this as a ban but we think this is not the case, although the government could take further action to make it so. In order to access the new flexibilities private sector DB members will be able to transfer to a DC scheme if they wish But not if their DB pension is already in payment

6 Page 6 of 7 There will be a new requirement on trustees of DB schemes to check that a member has taken advice from a professional financial adviser who is independent from the DB scheme and authorised by the FCA before allowing the transfer out of the scheme. In most cases the member will pay for this advice but if the transfer is from a DB to DC section within the same scheme, or as a result of an employer led incentive exercise then the employer must pay. The requirement to take advice will not apply where the transfer value is less than 30,000. Members will have to take advice where they initiate a DB to DC transfer This is in effect putting on a statutory footing the current practice in relation to DB transfers to personal pensions. But through extending it to occupational schemes a side-effect could be to make it more difficult for the individual to transfer to pension liberation vehicles. New guidance to DB trustees will be produced reminding them of their existing powers to maintain the sustainability of their schemes when faced with requests for transfers such as reducing transfer values and delaying payment. Trustees will be reminded of their existing powers Could DB schemes introduce retirement income flexibility directly? As the government has not banned private sector DB to DC transfers it will be possible to cash-out DB benefits via transferring them to a DC vehicle. Several respondents suggested that DB schemes should be able to cut out the middle man and permit DB schemes to also directly cash-out benefits. The government appears to accept this argument has some merits and will consult further on this issue, although no timescale is given, and we believe it is unlikely to be before the General Election in The tantalising prospect of greater flexibility within DB schemes remains Whether or not the government is minded to proceed on this point, its other decisions have already opened the door for a range of DB de-risking ideas for trustees and employers. Ban on transfers from unfunded public service DB to DC The government had concerns that the introduction of the new DC flexibilities could cause a rush of transfers from unfunded public service DB schemes into DC schemes, thus causing a strain on the Exchequer s finances. To prevent this, the government announced at the March Budget that it would ban transfers from all public service schemes to DC schemes. However, in a change of position, the government has now decided the ban will apply only to unfunded public service schemes. The legislation to do this is now in place in the Pension Schemes Bill so the ban will implemented at an unknown future date after this Bill has passed into law. Members of unfunded public sector DB schemes will be prevented from transferring to DC schemes

7 Page 7 of 7 DB Small funds age restrictions reduced The government has confirmed that the trivial commutation and small lump sum options will continue to apply to DB schemes, but allowed from age 55 on 6 April 2015, rather than the current age 60. A welcome decision simplifying retirement processing and meaning that those aged 55 to 60 can be included in sweep-up exercises to use the higher limits ( 10,000 and 30,000) introduced at the Budget. Overall comment The next eight months will be interesting times for all pension schemes whether occupational, contract-based, or indeed in the public sector (which will have their own issues). The reforms change the fundamental outcomes of saving in any DC arrangement and will have knock-on consequences for DB schemes as well. This News Alert should not be relied upon for detailed advice or taken as an authoritative statement of the law. If you would like any assistance or further information on the contents of this News Alert, please contact David Everett or the partner who normally advises you at LCP on +44 (0) or by enquiries@lcp.uk.com w LCP is a firm of financial, actuarial and business consultants, specialising in the areas of pensions, investment, insurance and business analytics. Lane Clark & Peacock LLP Lane Clark & Peacock LLP Lane Clark & Peacock Lane Clark & Peacock Lane Clark & Peacock London, UK Winchester, UK Belgium CVBA Ireland Limited Netherlands B.V. Tel: +44 (0) Tel: +44 (0) Brussels, Belgium Dublin, Ireland Utrecht, Netherlands enquiries@lcp.uk.com enquiries@lcp.uk.com Tel: +32 (0) Tel: +353 (0) Tel: +31 (0) info@lcpbe.com enquiries@lcpireland.com info@lcpnl.com Lane Clark & Peacock UAE Abu Dhabi, UAE Tel: +971 (0) info@lcpgcc.com All rights to this document are reserved to Lane Clark & Peacock LLP ( LCP ). This document may be reproduced in whole or in part, provided prominent acknowledgement of the source is given. Lane Clark & Peacock LLP is a limited liability partnership registered in England and Wales with registered number OC LCP is a registered trademark in the UK (Regd. TM No ) and in the EU (Regd. TM No ). All partners are members of Lane Clark & Peacock LLP. A list of members names is available for inspection at 95 Wigmore Street, London, W1U 1DQ, the firm s principal place of business and registered office. The firm is regulated by the Institute and Faculty of Actuaries in respect of a range of investment business activities. The firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are licensed by the Institute and Faculty of Actuaries. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. Lane Clark & Peacock UAE operates under legal name Lane Clark & Peacock Belgium Abu Dhabi, Foreign Branch of Belgium. Lane Clark & Peacock LLP.

Budget 2014: radical changes to pensions (and not just DC)

Budget 2014: radical changes to pensions (and not just DC) Page 1 of 7 News Alert 2014/01 20 March 2014 Budget 2014: radical changes to pensions (and not just DC) At a glance On 19 March, the Chancellor announced a number of shock changes to pensions from April

More information

Pension Protection Fund sets out its 2015/16 levy proposals

Pension Protection Fund sets out its 2015/16 levy proposals Page 1 of 5 News Alert 2014/08 7 October 2014 Pension Protection Fund sets out its 2015/16 levy proposals At a glance The Pension Protection Fund (PPF) has formally set out its intentions for the 2015/16

More information

Our view on recent regulatory and legal developments for trustees of small self administered pension schemes.

Our view on recent regulatory and legal developments for trustees of small self administered pension schemes. LCP SSAS UPDATE NOVEMBER 2013 Our view on recent regulatory and legal developments for trustees of small self administered pension schemes. IN THIS UPDATE: We highlight the effect of changes to the Annual

More information

The Chancellor s surprise pension announcements mean all employers must act now.

The Chancellor s surprise pension announcements mean all employers must act now. LCP CORPORATE PENSIONS UPDATE APRIL 2014 Including special Budget comment The Chancellor s surprise pension announcements mean all employers must act now. IN THIS ISSUE A special extended edition of the

More information

What retirement options do DB schemes provide to members and how are they communicated? LCP DB member communication survey August 2017

What retirement options do DB schemes provide to members and how are they communicated? LCP DB member communication survey August 2017 What retirement options do DB schemes provide to members and how are they communicated? LCP DB member communication survey August 2017 1 LCP DB communication survey August 2017 Introduction Most members

More information

Trustees and sponsors, especially those currently carrying out or approaching a valuation

Trustees and sponsors, especially those currently carrying out or approaching a valuation Page 1 of 5 News Alert 2018/02 11 April 2018 The Pensions Regulator s annual funding statement 2018 At a glance The Pensions Regulator has issued its 2018 annual funding statement which sets out the Regulator

More information

Freedom and Choice in Pensions - Decisions

Freedom and Choice in Pensions - Decisions 2014/25 22 July 2014 Freedom and Choice in Pensions - Decisions Introduction In the Budget of 19 March 2014, the Chancellor announced that tax law would be amended to give members with defined contribution

More information

Pensions Bulletin 2014/44. Government moves to next stage in implementing better workplace pensions. Page 1 of October 2014

Pensions Bulletin 2014/44. Government moves to next stage in implementing better workplace pensions. Page 1 of October 2014 Page 1 of 10 io Pensions Bulletin 2014/44 23 October 2014 Government moves to next stage in implementing better workplace pensions The Department for Work and Pensions (DWP) has published another command

More information

Following a record breaking year, 2015 gets off to a steady start.

Following a record breaking year, 2015 gets off to a steady start. LCP PENSIONS DE-RISKING QUARTERLY UPDATE Q2 2015 Following a record breaking year, 2015 gets off to a steady start. IN THIS ISSUE Welcome to LCP s review of the latest developments in the buy-in, buy-out

More information

New rules for pension transfer advice - how generous are transfer values?

New rules for pension transfer advice - how generous are transfer values? New rules for pension transfer advice - how generous are transfer values? LCP survey of DB Transfer Value Comparators October 2018 In this survey + + What is the Transfer Value Comparator (TVC)? + + How

More information

Pensions at the crossroads what direction will you take?

Pensions at the crossroads what direction will you take? LCP ANNUAL PENSIONS CONFERENCE TUESDAY 16 SEPTEMBER 2014 LONDON HILTON ON PARK LANE, LONDON, UK Pensions at the crossroads what direction will you take? Pensions at the crossroads what direction will you

More information

THURSDAY 5 FEBRUARY 2015 THE MAY FAIR HOTEL, London, W1J 8LT, UK. A new horizon for DC.

THURSDAY 5 FEBRUARY 2015 THE MAY FAIR HOTEL, London, W1J 8LT, UK. A new horizon for DC. LCP DEFINED CONTRIBUTION Conference THURSDAY 5 FEBRUARY 2015 THE MAY FAIR HOTEL, London, W1J 8LT, UK A new horizon for DC. LCP Defined Contribution Conference 2015 Find out more at www.lcp.uk.com/events

More information

PLANNING FOR PENSIONS AUTO-ENROLMENT AUGUST 2010 Employers will be required from October 2012 onwards to enrol the vast majority of their employees

PLANNING FOR PENSIONS AUTO-ENROLMENT AUGUST 2010 Employers will be required from October 2012 onwards to enrol the vast majority of their employees PLANNING FOR PENSIONS AUTO-ENROLMENT AUGUST 2010 Employers will be required from October 2012 onwards to enrol the vast majority of their employees into a pension scheme of sufficient quality and to contribute

More information

How are DC schemes adapting to freedom and choice? LCP DC Scheme Survey 2018 December 2018

How are DC schemes adapting to freedom and choice? LCP DC Scheme Survey 2018 December 2018 How are DC schemes adapting to freedom and choice? LCP DC Scheme Survey 2018 December 2018 Introduction Erica Beltrami Partner We are now three years into Freedom and Choice and we have seen many DC savers

More information

Get the best performance from your pensions accounting. Pensions accounting guide November 2017

Get the best performance from your pensions accounting. Pensions accounting guide November 2017 Get the best performance from your pensions accounting Pensions accounting guide November 2017 Taking a proactive approach to your pensions accounting can improve your financial reporting benchmarks. Your

More information

Summer Budget 2015 the changes to the Lifetime and Annual Allowance, some of them immediate

Summer 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 information

WEDNESDAY 6 NOVEMBER Delivering value to DC members.

WEDNESDAY 6 NOVEMBER Delivering value to DC members. LCP DEFINED CONTRIBUTION Conference WEDNESDAY 6 NOVEMBER 2013 LCP, 95 Wigmore Street, London W1U 1DQ, UK Delivering value to DC members. LCP Defined Contribution Conference 2013 Find out more at www.lcp.uk.com/events

More information

High Court forces resolution of the GMP inequality issue At a glance

High Court forces resolution of the GMP inequality issue At a glance Page 1 of 5 News Alert 2018/07 29 October 2018 High Court forces resolution of the GMP inequality issue At a glance On 26 October, in a ruling of momentous significance for all DB pension schemes contracted

More information

Are you aware of the latest market developments and regulations?

Are you aware of the latest market developments and regulations? LCP EXPLAINS: Keeping on top of your LDI portfolio 1 TEST YOURSELF Are you prepared for cash calls? APRIL 2017 LCP EXPLAINS Keeping on top of your LDI portfolio Are you aware of the latest market developments

More information

PENSIONER BUY-IN MARKET MARCH 2011 The 2011 buy-in market - opportunities to reduce risk for UK pension plans of all sizes.

PENSIONER BUY-IN MARKET MARCH 2011 The 2011 buy-in market - opportunities to reduce risk for UK pension plans of all sizes. PENSIONER BUY-IN MARKET MARCH 2011 The 2011 buy-in market - opportunities to reduce risk for UK pension plans of all sizes. 2 LCP Pensioner buy-in market Find out more at www.lcp.uk.com LCP designed the

More information

LCP GUIDE TO THE NEW EUROPEAN PENSIONS DIRECTIVE DECEMBER 2016

LCP GUIDE TO THE NEW EUROPEAN PENSIONS DIRECTIVE DECEMBER 2016 LCP GUIDE TO THE NEW EUROPEAN PENSIONS DIRECTIVE DECEMBER 2016 The IORP II Directive has finally arrived and is intended to improve the way pension schemes are governed, encourage responsible investment

More information

Get a head start with us this summer

Get a head start with us this summer Get a head start with us this summer Summer Internship opportunities at LCP Pensions Actuarial Investment Insurance Business Analytics and Financial Modelling Your future starts here. Studying at university

More information

Investment funds are lacking independent governance. LCP fund governance survey report May 2017

Investment funds are lacking independent governance. LCP fund governance survey report May 2017 Investment funds are lacking independent governance LCP fund governance survey report May 2017 1 LCP fund governance survey May 2017 Introduction - why fund governance matters When deciding which companies

More information

What next for UK auctions of renewable Contracts for Difference?

What next for UK auctions of renewable Contracts for Difference? What next for UK auctions of renewable Contracts for Difference? In February we saw the results of the first competitive auction for Contracts for Difference (CfDs), the primary support mechanism for incentivising

More information

As a trustee, it is vital you are up to date and fully understand how legislative and regulatory issues impact your scheme.

As a trustee, it is vital you are up to date and fully understand how legislative and regulatory issues impact your scheme. As a trustee, it is vital you are up to date and fully understand how legislative and regulatory issues impact your scheme. LCP Trustee Training Courses 2018 GILBERT STREET 2 To Register www.lcp.uk.com/events

More information

Behind the scenes: Are investment managers delivering on their responsible investment claims? LCP Responsible Investment Survey March 2018

Behind the scenes: Are investment managers delivering on their responsible investment claims? LCP Responsible Investment Survey March 2018 Behind the scenes: Are investment managers delivering on their responsible investment claims? LCP Responsible Investment Survey March 208 LCP Responsible Investment Survey March 208 Introduction How we

More information

In Depth. Pot luck? Budget proposes significant changes to the taxation of retirement savings. April 2014

In 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 information

TUESDAY 6 SEPTEMBER 2011 THE INTERCONTINENTAL HOTEL, LONDON, UK LCP Annual Pensions Conference 2011: A pensions strategy for a new generation.

TUESDAY 6 SEPTEMBER 2011 THE INTERCONTINENTAL HOTEL, LONDON, UK LCP Annual Pensions Conference 2011: A pensions strategy for a new generation. TUESDAY 6 SEPTEMBER 2011 THE INTERCONTINENTAL HOTEL, LONDON, UK LCP Annual Pensions Conference 2011: A pensions strategy for a new generation. LCP Annual Pensions Conference 2011 Find out more at www.lcp.uk.com/events

More information

WEDNESDAY 19 SEPTEMBER 2012 THE INTERCONTINENTAL HOTEL, LONDON, UK. A down-to-earth approach to pensions strategy.

WEDNESDAY 19 SEPTEMBER 2012 THE INTERCONTINENTAL HOTEL, LONDON, UK. A down-to-earth approach to pensions strategy. LCP Annual Pensions Conference WEDNESDAY 19 SEPTEMBER 2012 THE INTERCONTINENTAL HOTEL, LONDON, UK A down-to-earth approach to pensions strategy. LCP Annual Pensions Conference 2012 Find out more at www.lcp.uk.com/events

More information

Taking stock: a pensions strategy for 2016 and beyond.

Taking stock: a pensions strategy for 2016 and beyond. LCP ANNUAL PENSIONS CONFERENCE THURSDAY 19 SEPTEMBER 2013 THE INTERCONTINENTAL HOTEL, LONDON, UK Taking stock: a pensions strategy for 2016 and beyond. LCP Annual Pensions Conference 2013 Find out more

More information

BCE3 (the benefit crystallisation associated with proportionately large pension increases);

BCE3 (the benefit crystallisation associated with proportionately large pension increases); 29th November 2007 Issue No: 49 Pensions Bulletin HMRC easement on forthcoming legislative changes HM Revenue & Customs (HMRC) have made a welcome announcement in advance of proposed legislative changes

More information

Simplifying risks. LCP GLOBAL PENSIONS FORUM 2015 THURSDAY 21 MAY 2015 THE MAY FAIR HOTEL, LONDON, W1J 8LT, UK

Simplifying risks. LCP GLOBAL PENSIONS FORUM 2015 THURSDAY 21 MAY 2015 THE MAY FAIR HOTEL, LONDON, W1J 8LT, UK LCP GLOBAL PENSIONS FORUM 2015 THURSDAY 21 MAY 2015 THE MAY FAIR HOTEL, LONDON, W1J 8LT, UK Simplifying risks. RÜSS, DR. ZIMMERMANN UND PARTNER (GbR) BERATENDE AKTUARE LCP Global Pensions Forum 2015 Find

More information

UK EVENTS SCHEDULE SEPTEMBER - DECEMBER Events that address and explain hot topics, key issues and the latest industry developments.

UK EVENTS SCHEDULE SEPTEMBER - DECEMBER Events that address and explain hot topics, key issues and the latest industry developments. UK EVENTS SCHEDULE SEPTEMBER - DECEMBER 2010 Events that address and explain hot topics, key issues and the latest industry developments. LCP UK events schedule September - December 2010 Register online

More information

New Pensions Freedom. Giving people more confidence to save into a pension

New Pensions Freedom. Giving people more confidence to save into a pension FINANCIAL GUIDE A GUIDE TO New Pensions Freedom Giving people more confidence to save into a pension WELCOME Giving people more confidence to save into a pension Welcome to our Guide to New Pensions Freedom.

More information

EXPLANATORY CIRCULAR

EXPLANATORY CIRCULAR EXPLANATORY CIRCULAR RELATING TO A PROPOSED TRANSFER OF GENERAL INSURANCE BUSINESS by FIDELIS UNDERWRITING LIMITED (FUL) to FIDELIS RISK IRELAND DAC (FRID) UNDER PART VII OF THE FINANCIAL SERVICES AND

More information

Review of the first GB capacity auction

Review of the first GB capacity auction Review of the first GB capacity auction ELECTRICITY MARKET REFORMS On the 19th December National Grid and the Department of Energy and Climate Change (DECC) announced the results of the first Capacity

More information

Report on actuarial valuation as at 31 December Church Workers Pension Fund

Report on actuarial valuation as at 31 December Church Workers Pension Fund Report on actuarial valuation as at 31 December 2016 Church Workers Pension Fund 3377205 Page 1 of 32 Church Workers Pension Fund Report on actuarial valuation as at 31 December 2016 As instructed, we

More information

determine if these sources of funding could be used to increase assistance for affected scheme members; and

determine if these sources of funding could be used to increase assistance for affected scheme members; and 29th March 2007 Issue No: 14 Pensions Bulletin Financial Assistance Scheme Review of assets Following the Budget announcement last week of an expansion to the Financial Assistance Scheme (see Pensions

More information

Transfer values Government consults on draft regulations

Transfer values Government consults on draft regulations 12th July 2007 Issue No: 29 Pensions Bulletin Transfer values Government consults on draft regulations Further to the consultation last summer (see Pensions Bulletin 2006/33) and the government s statement

More information

LCP FTSE 250 EXECUTIVE PENSIONS SURVEY 2012 Companies turn to a new, flexible form of executive pension compensation.

LCP FTSE 250 EXECUTIVE PENSIONS SURVEY 2012 Companies turn to a new, flexible form of executive pension compensation. LCP FTSE 250 EXECUTIVE PENSIONS SURVEY 2012 Companies turn to a new, flexible form of executive pension compensation. 2 This document may be reproduced in whole or in part, provided prominent acknowledgement

More information

Abolition of the transfer lump sum death benefit closing down a mechanism whereby ASP could be used for inter-generational capital transfers.

Abolition of the transfer lump sum death benefit closing down a mechanism whereby ASP could be used for inter-generational capital transfers. 7th December 2006 Issue No: 49 Pensions Bulletin Pre-Budget Report Pensions aspects On 6th December 2006, Gordon Brown delivered his tenth Pre-Budget Report. It contains many changes to the pension tax

More information

LCP DC FEES SURVEY 2012 By providing more transparency on fees, our survey can help management, members and trustees improve DC fund growth,

LCP DC FEES SURVEY 2012 By providing more transparency on fees, our survey can help management, members and trustees improve DC fund growth, LCP DC FEES SURVEY 12 By providing more transparency on fees, our survey can help management, members and trustees improve DC fund growth, resulting in larger pensions for members. 2 This first edition

More information

TUESDAY 28 SEPTEMBER 2010 THE INTERCONTINENTAL HOTEL, LONDON, UK. LCP Annual Pensions Conference 2010: delivering pensions in a new era of austerity.

TUESDAY 28 SEPTEMBER 2010 THE INTERCONTINENTAL HOTEL, LONDON, UK. LCP Annual Pensions Conference 2010: delivering pensions in a new era of austerity. TUESDAY 28 SEPTEMBER 2010 THE INTERCONTINENTAL HOTEL, LONDON, UK LCP Annual Pensions Conference 2010: delivering pensions in a new era of austerity. 2 LCP Annual Pensions Conference 2010 Find out more

More information

Spring 2015 reforms: the new DC flexibilities

Spring 2015 reforms: the new DC flexibilities Spring 2015 reforms: the new DC flexibilities THE REFORMS AT A GLANCE y Under current rules, members usually face serious tax penalties if they do not spend at least 75% of their DC pots on an annuity

More information

How to make retirement benefits work for your company.

How to make retirement benefits work for your company. LCP GLOBAL PENSIONS FORUM THURSDAY 15 MAY 2014 THE MAY FAIR HOTEL, LONDON, UK How to make retirement benefits work for your company. RÜSS, DR. ZIMMERMANN UND PARTNER (GbR) BERATENDE AKTUARE LCP Global

More information

FTSE 250 Executive Pensions Survey

FTSE 250 Executive Pensions Survey Emergency Budget Special July 2010 FTSE 250 Executive Pensions Survey Executive pensions will be reshaped to prepare for April 2011 Key findings 33,000 The new pension tax payable every year before retirement

More information

Review of the second GB capacity auction

Review of the second GB capacity auction Review of the second GB capacity auction ELECTRICITY MARKET REFORMS On the 11th December 2015 National Grid and the Department of Energy and Climate Change (DECC) published the results of the second T-4

More information

Pensions Flexibility Taxation Proposals

Pensions 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 information

End of the waiting game

End 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 information

Actuarial profession issues warning on commutation factors

Actuarial profession issues warning on commutation factors 22nd February 2007 Issue No: 8 Pensions Bulletin Actuarial profession issues warning on commutation factors Amidst concern that, as a result of falling long-dated nominal and real interest rates and higher

More information

Pensions update for universities

Pensions 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 information

Is there any way that I can bring the increase in the maximum forward so that my client can benefit from it immediately?

Is there any way that I can bring the increase in the maximum forward so that my client can benefit from it immediately? In this issue... Income drawdown changes from 27 March 2014 Flexible drawdown changes Trivial commutation changes Small lump sums Pension changes coming into effect from 6 April 2015 The Budget may have

More information

Pension flexibilities and defined benefit schemes

Pension flexibilities and defined benefit schemes RESEARCH Pension flexibilities and defined benefit schemes 2015 research 1 2 Pension flexibilities and defined benefit schemes Introduction On 6 April 2015 the government introduced a range of legislative

More information

Legislative Update. August Legislation (http://www.legislation.gov.uk) Finance Act Pensions Act 2014

Legislative 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 information

Pensions freedom drawing from your pension

Pensions freedom drawing from your pension KEY GUIDE Pensions freedom drawing from your pension Radical reform The changes announced in the 2014 Budget were described by some retirement planning experts as a pensions revolution. The radical proposals

More information

Accounting for pensions New interpretation on balance sheets limits published

Accounting for pensions New interpretation on balance sheets limits published 5th July 2007 Issue No: 28 Pensions Bulletin Pensions Regulator Scheme funding guidance The Pensions Regulator (tpr) has published additional scheme funding guidance in the form of Q & A s based on actual

More information

Further Detail on the Pensions Advice Allowance

Further Detail on the Pensions Advice Allowance UK Volume 2017 Issue 23 18 April 2017 Further Detail on the Pensions Advice Allowance The government has introduced a pensions advice allowance, from 6 April 2017, for members of defined contribution pension

More information

Restricting 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. 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 information

The effects of Brexit on the UK power market Part One

The effects of Brexit on the UK power market Part One The effects of Brexit on the UK power market Part One In part one of a two part Brexit briefing, we look at the potential impact of the UK s vote to leave the EU on the UK electricity market. We have developed

More information

Suspension of the GB capacity market: What s happened, what does it mean and what could happen now? 2 January 2019

Suspension of the GB capacity market: What s happened, what does it mean and what could happen now? 2 January 2019 Suspension of the GB capacity market: What s happened, what does it mean and what could happen now? 2 January 2019 Introduction Following the decision by the General Court of the EU in relation to the

More information

Pension Flexibility & Taxation

Pension Flexibility & Taxation TAx HELP Pension Flexibility & Taxation rv r ice providing free help and advice to older people with tax problems. problems. tax with people older to advice and help free providing service serv charity

More information

LCP IRELAND PENSIONS ACCOUNTING BRIEFING 2015

LCP IRELAND PENSIONS ACCOUNTING BRIEFING 2015 LCP IRELAND PENSIONS ACCOUNTING BRIEFING 2015 In an environment of historically low bond yields, defined benefit pension schemes continue to have a significant impact on company balance sheets. This report

More information

LGPS (England and Wales) scheme administrator guide Freedom and Choice AVCs

LGPS (England and Wales) scheme administrator guide Freedom and Choice AVCs LGPS (England and Wales) scheme administrator guide Freedom and Choice AVCs Contents Background Pension flexibilities and AVCs AVC options at retirement Transferring AVCs Disclosure Requirements Flowcharts

More information

(for example, there is some suggestion that the Regulator's "Trustee Toolkit" could form a suitable professional qualification).

(for example, there is some suggestion that the Regulator's Trustee Toolkit could form a suitable professional qualification). 1. IORP II 1 UK: Pensions Update October 2014 1. IORP II In September, amendments to the proposed reforms to IORP II were published in the First Presidency compromise text as the proposal moves through

More information

PENSION SCHEMES BILL EXPLANATORY NOTES

PENSION SCHEMES BILL EXPLANATORY NOTES PENSION SCHEMES BILL EXPLANATORY NOTES INTRODUCTION 1. These explanatory notes relate to the Pension Schemes Bill as brought from the House of Commons on 26th November 2014. They have been prepared by

More information

CONTENTS. CLASS 2 NICs WILL BE PAYABLE VIA SELF-ASSESSMENT

CONTENTS. CLASS 2 NICs WILL BE PAYABLE VIA SELF-ASSESSMENT CONTENTS CLASS 2 NICs WILL BE PAYABLE VIA SELF- ASSESSMENT THE NEW 0% STARTING RATE OF INCOME TAX A PRACTICAL REMINDER THE GOVERNMENT RAISES THE BAR ON DB ADVICE CONSULTATION ON AN INCREASED MINIMUM PERIOD

More information

Transfer values Government lays regulations for new trustee-driven regime

Transfer values Government lays regulations for new trustee-driven regime 17th April 2008 Issue No: 17 Pensions Bulletin Transfer values Government lays regulations for new trustee-driven regime Regulations have been laid before Parliament that bring into force the new individual

More information

DGFs / Multi Asset Strategies Still a Solution? Oliver Kelly LCP Ireland. IAPF Annual Investment Conference 2017

DGFs / Multi Asset Strategies Still a Solution? Oliver Kelly LCP Ireland. IAPF Annual Investment Conference 2017 DGFs / Multi Asset Strategies Still a Solution? Oliver Kelly LCP Ireland Newtonian mechanics Special and General relativity Quantum mechanics Solutions evolve I would rather have questions that can't be

More information

Freedom and Choice AVCs

Freedom and Choice AVCs Freedom and Choice AVCs Contents Background Pension flexibilities and AVCs LGPS (Amendment) Regulations 2018 AVC categories AVC options at retirement Transferring AVCs AVCs and aggregation Disclosure Requirements

More information

The actuarial profession has also published a briefing note on the subject.

The actuarial profession has also published a briefing note on the subject. Pensions Bulletin Number 2006/12 23rd March 2006 TRANSFER VALUES GOVERNMENT TO LEGISLATE The Government has announced that it will consult shortly on the way that transfer values are calculated. This follows

More information

Pension News. Chairman s Introduction. Scheme Funding - DB Section / Issue 12. Principal Employer - Outokumpu Stainless Ltd

Pension News. Chairman s Introduction. Scheme Funding - DB Section / Issue 12. Principal Employer - Outokumpu Stainless Ltd Pension News 2014 / Issue 12 Issued to all active members, pensioners and deferred pensioners of the AvestaPolarit Pension Scheme Principal Employer - Outokumpu Stainless Ltd Chairman s Introduction Welcome

More information

Restricting pensions tax relief for high income individuals

Restricting pensions tax relief for high income individuals 4th March 2010 Issue No: 9 Pensions Bulletin Restricting pensions tax relief for high income individuals Consultation has now closed on the Government s proposals on implementing its controversial plans

More information

pensionswatch A SUMMARY REPORT AND ACCOUNTS FOR THE MEMBERS OF ARMSTRONG PENSION SCHEME ("THE SCHEME")

pensionswatch A SUMMARY REPORT AND ACCOUNTS FOR THE MEMBERS OF ARMSTRONG PENSION SCHEME (THE SCHEME) LCP 2017 pensionswatch A SUMMARY REPORT AND ACCOUNTS FOR THE MEMBERS OF ARMSTRONG PENSION SCHEME ("THE SCHEME") DECEMBER 2017 Welcome Welcome to the latest edition of the Armstrong Pension Scheme newsletter.

More information

Priority on wind-up Appeal Court rules on Barber windows

Priority on wind-up Appeal Court rules on Barber windows 2nd August 2007 Issue No: 32 Pensions Bulletin Priority on wind-up Appeal Court rules on Barber windows In a case that is of potential great significance for under funded schemes that commenced winding

More information

Selex Pension Scheme. Additional Voluntary Contributions (AVC) Guide. August 2016 edition

Selex Pension Scheme. Additional Voluntary Contributions (AVC) Guide. August 2016 edition Selex Pension Scheme Additional Voluntary Contributions (AVC) Guide August 2016 edition Additional Voluntary Contributions (AVC) Guide 1 August 2016 Contents Introduction... 3 What are AVCs?... 4 Contents

More information

Your Guide to Pension Freedom

Your Guide to Pension Freedom Your Guide to Pension Freedom Since April 2015 individuals have had freedom to access their pensions. The changes marked a radical departure from the previous system, by giving greater choices and trusting

More information

Advising on Pension Transfers CP17/16

Advising on Pension Transfers CP17/16 Association of Consulting Actuaries Limited Second Floor (203) - 40 Gracechurch Street - London - EC3V 0BT Tel: +44 (0)20 3102 6761 Email: acahelp@aca.org.uk Web: www.aca.org.uk 20 September 2017 Emily

More information

Pension Flexibility: Transitional issues associated with the pension changes that came into force on 27 March 2014

Pension Flexibility: Transitional issues associated with the pension changes that came into force on 27 March 2014 Pension Flexibility: Transitional issues associated with the pension changes that came into force on 27 March 2014 Draft Guidance Note 17 July 2014 1 Index Summary...3 1. Individual who has not yet received

More information

INTERNATIONAL RETIREMENT SOLUTIONS. Helping you plan for a comfortable retirement overseas

INTERNATIONAL RETIREMENT SOLUTIONS. Helping you plan for a comfortable retirement overseas INTERNATIONAL RETIREMENT SOLUTIONS Helping you plan for a comfortable retirement overseas Choosing the most appropriate way to invest or manage your money can help you enjoy the retirement you ve always

More information

Q&A for LGPS Pension Funds Version issue date 10 July 2015

Q&A for LGPS Pension Funds Version issue date 10 July 2015 Q&A for LGPS Pension Funds Version 1.1 - issue date 10 July 2015 Transfers from the LGPS to Defined Contribution Schemes from 6 April 2015 Introduction The 2014 Budget announced reforms to workplace pensions

More information

LGPS Freedom and choice in pensions What it means for you

LGPS Freedom and choice in pensions What it means for you LGPS 2015 Freedom and choice in pensions What it means for you Welcome to the latest issue of FutureView. In this newsletter we cover a number of important changes being introduced to the way that people

More information

Pension Transfers: A technical guide

Pension Transfers: A technical guide For Financial Adviser use only Pension Transfers: A technical guide March 2013 This guide looks at pension transfers from the perspectives of both HMRC and the FSA. HMRC provides guidance on the rules

More information

My pension My choices The Metal Box Pension Scheme (the Scheme) DC Section

My pension My choices The Metal Box Pension Scheme (the Scheme) DC Section My pension My choices The Metal Box Pension Scheme (the Scheme) DC Section There are now many different ways that you can access your pension savings. Some options are available under the Scheme and others

More information

Pensions News. In this edition. December 2017

Pensions News. In this edition. December 2017 December 2017 Pensions News In this edition Welcome 2 What s in the news? 3 Message from the Trustee Directors 5 Protecting your data 6 The Plan s accounts 7 The financial review 8 Useful websites 9 Keeping

More information

A Guide to the Local Government Pension Scheme for Councillors in Scotland

A 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 information

TUESDAY 6 SEPTEMBER 2011 THE INTERCONTINENTAL HOTEL, LONDON, UK. LCP Annual Pensions Conference 2011: A pensions strategy for a new generation.

TUESDAY 6 SEPTEMBER 2011 THE INTERCONTINENTAL HOTEL, LONDON, UK. LCP Annual Pensions Conference 2011: A pensions strategy for a new generation. TUESDAY 6 SEPTEMBER 2011 THE INTERCONTINENTAL HOTEL, LONDON, UK LCP Annual Pensions Conference 2011: A pensions strategy for a new generation. 2 Agenda In recent years, the baby boomer generation has started

More information

Join us online! Get started. inside this issue: reasons to register. More than 34,000 RPS members have registered online for myrps have you?

Join us online! Get started. inside this issue: reasons to register. More than 34,000 RPS members have registered online for myrps have you? February 2017 issue 68 Join us online! More than 4,000 RPS members have registered online for myrps have you? MyRPS is a secure area of your railways pensions website, where you can find your own personal

More information

? How are my benefits calculated?

? How are my benefits calculated? Briefing note Drawing benefits from a SSAS Our go-to guide contains everything you need to know about drawing benefits from a typical money purchase SSAS set up on Barnett Waddingham s standard rules.

More information

current i s s u e s i n pensions

current i s s u e s i n pensions health wealth career current i s s u e s i n pensions trustee edition february 2016 health wealth career 1 in this edition first streamlined longevity hedge executed in the uk 3 eu referendum 4 contracted-out

More information

Q&A for LGPS Members Freedom and Choice - Transfers from the LGPS to Defined Contribution Schemes

Q&A for LGPS Members Freedom and Choice - Transfers from the LGPS to Defined Contribution Schemes Q&A for LGPS Members Freedom and Choice - Transfers from the LGPS to Defined Contribution Schemes From 6 April 2015, the Government introduced greater flexibility ( Freedom and Choice ) in the way individuals,

More information

PENSIONS ACT 2004 RESTRICTIONS ON LUMP SUM DEATH BENEFITS

PENSIONS ACT 2004 RESTRICTIONS ON LUMP SUM DEATH BENEFITS Pensions Bulletin Number 2006/27 6th July 2006 PENSIONS ACT 2004 RESTRICTIONS ON LUMP SUM DEATH BENEFITS The Pensions Regulator has confirmed that occupational pension schemes may no longer be able to

More information

My pension My choices

My pension My choices My pension My choices The Metal Box Pension Scheme (the Scheme) DB Section, and the Metal Box AVC Plan (the AVC Plan) There are now different ways that you can access your pension savings as an alternative

More information

C4.09 PENSION TRANSFERS

C4.09 PENSION TRANSFERS C4.09 PENSION TRANSFERS SYLLABUS Right to a transfer Calculation of transfer values Transfer value analysis systems Discretionary increases Basis of assumptions Added years Access to transferred benefits

More information

What can you do today, to make a brighter tomorrow?

What can you do today, to make a brighter tomorrow? National Grid UK Pension Scheme What can you do today, to make a brighter tomorrow? A guide to AVCs As a member of the National Grid UK Pension Scheme you can increase your income in retirement by paying

More information

Telefónica UK Pension Plan. Statement of Investment Principles

Telefónica UK Pension Plan. Statement of Investment Principles Telefónica UK Pension Plan Statement of Investment Principles Introduction Under the Pensions Act 1995 (as updated by the Pensions Act 2004), the Telefónica UK Pension Trustee ( the Trustee ) is required

More information

LCP IRELAND PENSIONS ACCOUNTING BRIEFING 2014

LCP IRELAND PENSIONS ACCOUNTING BRIEFING 2014 LCP IRELAND PENSIONS ACCOUNTING BRIEFING 2014 Despite an improvement in scheme deficits over 2013, Defined Benefit pension schemes continue to have a significant impact on company balance sheets. This

More information

Self-Invested Pensions Seminars

Self-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 information

Your Guide to Understanding the Old Mutual Wealth Pension Transfer

Your Guide to Understanding the Old Mutual Wealth Pension Transfer Your Guide to Understanding the Old Mutual Wealth Pension Transfer Analysis (TVAS) Report The sections of the report covered in this guide are those relating to: The client The Pension Protection Fund

More information

Your fund guide. For members of Pace DC (including Additional Voluntary Contributions) Co-operative Bank Section August 2018

Your fund guide. For members of Pace DC (including Additional Voluntary Contributions) Co-operative Bank Section August 2018 Your fund guide For members of Pace DC (including Additional Voluntary Contributions) Co-operative Bank Section August 2018 Welcome to your fund guide for members of Pace DC. Please read this guide together

More information

Key features. Self Invested Personal Pension

Key features. Self Invested Personal Pension Self Invested Personal Pension Key features The Financial Conduct Authority is the independent financial services regulator. It requires us, AJ Bell Management Limited, to give you this important information

More information