December 2015 Compass

21 December 2015

Welcome to the Christmas 2015 edition of Compass.

On the run up to the festive period, it has been a busy time for those working in the pension industry. While the Autumn Statement did not contain too many surprises, the Finance Bill 2016 followed shortly afterwards, which provides the draft legislation for a number of reforms already announced. It will implement the reduction to the Lifetime Allowance for tax privileged pension savings and it will introduce two further types of Lifetime Allowance protection. Further information about this and other ancillary issues were outlined in the Pension Schemes Newsletter 74.

The Pensions Regulator has been tidying up its DC Code of Practice to reflect a number of changes that have happened as a result of the Government’s drive to improve DC governance since it was first introduced in 2013.

The Government has also recently published its response to the call for evidence on the secondary annuity market that will come into operation in 2017. This sets out further information on how the Government intends to take forward its proposals to allow individuals to be able to cash in their annuities.

One area where there was no change was in relation to the Scottish rate of income tax. The Scottish Parliament published its Budget on 16 December 2015, which announced that there would be no change to income tax for Scottish residents following new powers devolved to Scotland.

Elsewhere in Compass we look at:

  • A consultation on proposed changes to introduce mandatory retirement risk disclosures and notifications to ex-spouses where members have earmarking (or pension attachment) orders and members are retiring with flexible benefits. This consultation is accompanied by a call for evidence on the subject of the valuation of Guaranteed Annuity Rates.
  • A recent case from the Pension Protection Fund Ombudsman.
  • A round up of other developments.

If you have any questions regarding the topics covered, please email: cebtechnicalteam@capita.co.uk

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