Welcome to the February 2017 issue of Compass
The Government has published its eagerly-anticipated Green Paper on defined benefit (DB) pension schemes and is now canvassing views and seeking evidence on what are the best steps to take to ensure the security and sustainability of DB schemes. We look at the Government’s initial views and identify the areas that it is considering.
The month also saw the publication of the Government’s plans to introduce a Pensions Advice Allowance (PAA) which will allow members to withdraw £500 from their Defined Contribution pension pots to pay for professional financial advice without any tax penalties. The aim of the PAA is to provide greater opportunity for individuals to receive regulated advice for their retirement provision. We cover the key issues around its introduction.
We also look at automatic enrolment developments, particularly the launch of the 2017 review process. Over the last month we have seen a variety of announcements and research covering the future development of this flagship policy, a look at past trends and identification of current issues and design tweaks (such as new exceptions for tax protection cases).
Elsewhere in Compass we cover:
The Supreme Court’s judgement in the Brewster case that automatically excluding a surviving cohabiting partner from a survivor’s pension because they did not complete a nomination form was incompatible with the European Convention on Human Rights.
The Pimlico Plumbers case in the Court of Appeal about those who qualify as a worker even when they are not employees, which is relevant for automatic enrolment.
•The ACA's Smaller Firms Pension Survey shows the challenges ahead for automatic enrolment.
The Pensions Regulator publishes its annual presentation of scheme data for DC trust schemes.
The latest HMRC quarterly bulletin published on the amount of pension savings released using the pension freedoms.
Finally please note that important deadlines are looming on 5 April 2017 for both:
Applications for Individual Protection 2014; and
The use of the statutory modification power by trustees to amend their scheme rules so that fixed rate revaluation is only applied when a member leaves pensionable service.
If you have any questions regarding the topics covered, please email: firstname.lastname@example.org.
Compass February Issue 2017
The Government has published its eagerly-anticipated Green Paper on defined benefit (DB) pension schemes and is now canvassing views and seeking evidence on what are the best steps to take to ensure the security and sustainability of DB schemes. We look at the Government’s initial views and identify the areas that it is considering.Read more