Welcome to the February 2016 issue of Compass

17 February 2016

Welcome to the February 2016 issue of Compass.

This month sees the Government issuing a consultation response in which it identifies a need to enforce a reduction in charges applied by some transferring schemes when a member exits the scheme. It also highlights how it would like to see the transfer process improved so that it takes less time for the transfer of pension benefits between schemes.

As we near the end of contracting out on a defined benefit basis, trustees of schemes are running out of time to start the GMP reconciliation process as the deadline for applying to use the Scheme Reconciliation Service closes on 5 April 2016. As well as a review of the recent Countdown Bulletin, we also highlight an issue that may require the attention of trustees of open schemes currently providing GMP revaluation on a fixed rate basis.

The introduction of the tapered annual allowance for 2016/17 has raised the question of how high earners will receive the information that they need to establish if a tax charge will apply. Draft reporting requirements published by HMRC suggest pension savings statements should be issued to anyone with pensionable earnings above £110,000 but this suggestion isn’t without its difficulties.

In Ireland, the first tranche of DC Governance codes of practice has been introduced and in its five year plan the Pensions Authority has set out how it will increase its compliance activity and work to improve the support it provides to pension schemes. Perhaps of greater interest is that it will work with the Revenue to review the pension taxation system.

Elsewhere in Compass we cover:

  • Updates to the Incentive Exercises Code of Practice
  • Automatic Enrolment easements
  • Amendments to governance requirements for master trusts and multi-employer schemes
  • Case law – tax charges applied to a member loan from a SIPP
  • TPR updates on its innovation plan and a couple of statistical reports
  • DWP guidance published on pension benefits that include a guarantee 
  • HMRC Newsletters 75 and 76
  • NEST consultation

This month’s articles may be viewed from the list on the right side of this page.

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

Compass February Issue 2016

The February edition of our online monthly publication, Compass, is now available. Compass provides commentary and analysis of recent legislative and regulatory developments affecting pensions and employee benefits.

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