The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Termination and Transfer notices Statement CA1629 GMP calculations Scheme Reconciliation Service (SRS) Scheme Cessation Update from Customer Relations Team What’s happening later in the year Department for Work and Pensions (DWP) update
Back to Contents
Baroness Ros Altmann resigns as Pensions Minister 18 July 2016
Baroness Ros Altmann has stepped down as Pensions Minister and has been replaced by MP Penny Mordaunt, the government has confirmed.
In her resignation letter to Prime Minister Theresa May, Altmann stated that: “Unfortunately over the past year, short- term political considerations, exacerbated by the EU referendum, have inhibited good policymaking. As the country heads into uncharted waters, I would urge you and your new team to enable my successor to address some of the major policy reforms that are needed to improve pensions for the future.” Baroness Altmann also said that it is “vital” to continue to roll out auto-enrolment and that the government should look to develop a “one nation” pension. This would include a “long overdue reform” of pensions tax relief, which would have flat-rate tax relief more generous than the current basic-rate tax relief, and withdrawals taxed in later life as a behavioural incentive not to spend retirement savings too soon. She called for more help for women forced to work longer by the government’s decision to raise the pension age saying “I am not convinced the government adequately addressed the hardship facing women who have had their state pension age increased at a relatively short notice.” Penny Mordaunt has been the Member of Parliament for Portsmouth North since winning the seat at the 2010 general election. The CIPP looks forward to working with Ms Mordaunt over the coming months and years to address the many challenges faced by the pensions industry.
Back to Contents
Guaranteed Minimum Pension checker 19 July 2016
The Guaranteed Minimum Pension (GMP) checker has now been added to HMRC’s service availability and issues web page.
The new State Pension has replaced the existing basic and Additional State Pension and ended contracting-out for defined benefit pension schemes.
HMRC won’t track contracted-out rights or issue statements to pension schemes.
If you provided a defined benefit contracted-out scheme you’ll need to: comply with the legislation make sure that members’ entitlements resulting from contracted-out employment are protected provide a GMP to your members for contracted-out service between 6 April 1978 and 5 April 1997 (a GMP is payable at age 60 for a women and 65 for a man)
You can use the GMP checker to get a calculation for your members.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 508 of 588
Made with FlippingBook - Online magazine maker