Welcome to the September 2017 issue of Compass

29 September 2017

As the football season restarts following a crazy transfer market, Children go ‘Back to school’ and those without children go on holiday, we know we are entering the season of mists and mellow fruitfulness. But putting poetry aside for a moment the world of pensions legislation and regulation continues to develop. This is a short digest of some of the developments through September.

Our first article looks at the Pension Regulator’s (‘TPR’) latest initiative to both pressure and assist trustees in complying with regulatory standards. Later on in this edition we have several short articles about some of the recent direct enforcement action taken by TPR.

The second article looks at the second Finance Bill for this year. This is designed to reintroduce those provisions that were dropped from the first Finance Bill to allow it easy and quick passage through Parliament before the snap general election.  The most controversial of these is the reduction of the money purchase annual allowance from £10,000 to £4,000 with effect from 6 April 2017.

We also look at the issues surrounding the scheme pays mechanisms for the annual allowance charge using mandatory scheme pays and voluntary scheme pays. This interacts with the introduction of the tapered annual allowance in 2016/17 and many high earners will be facing a significant new tax charge this year, but the method for paying this through the scheme is not simple. 

Elsewhere in Compass we cover:

  • Draft regulations concerning bridging pensions payable in respect of scheme members transferred to the Pension Protection Fund, and
  • A round up of other pensions news.

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

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