The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Once a person has accessed pension savings flexibly, if they wish to make any further contributions to a defined contribution (DC) pension, tax-relieved contributions are restricted to a special money purchase annual allowance (MPAA). The government believes that an allowance of £4,000 is fair and reasonable and should allow people who need to access their pension savings to rebuild them if they subsequently have opportunity to do so. Importantly, however, it limits the extent to which pension savings can be recycled to take advantage of tax relief, which is not within the spirit of the pension tax system. The government does not consider that earners aged 55+ should be able to enjoy double pension tax relief i.e. relief on recycled pension savings.
This consultation seeks views on whether respondents agree that this level of MPAA would neither impact on the roll out of automatic enrolment nor disproportionately affect particular groups.
The consultation ‘Reducing the money purchase annual allowance’ closes at 15 February 2017 11:45pm.
Ways to respond
Email to: MPAAResponses@hmtreasury.gsi.gov.uk
Write to:
Pension and Savings Team HM Treasury 1 Horse Guards Road London SW1A 2HQ
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Free comparison site for payroll software 2 December 2016
Pensionsync has launched a pension provider comparison website designed to help UK employers make informed decisions when selecting a workplace pension.
The website will also allow employers to compare payroll software to assist when administering workplace pensions.
It is the first free industry comparison site that brings together public domain information from major pension providers with considered opinion from experts and third parties.
Payroll.pensions.market has been designed to deliver essential information in in a straightforward, easy-to-understand format, free of charge.
Will Lovegrove, CEO of pension sync said:
“What pensions.market reveals is that there is a very healthy workplace pension provider market competing for business from the 1m small employers yet to stage. The providers in this market have different propositions, charges and services to offer. There was a time when many in the industry believed there would be a “capacity crunch” of pension provision to SMEs. In fact, the opposite is now true. There is good capacity and good choice in the market. However, employers have very few sources of trusted and free information to turn to when picking a workplace pension provider, and this information isn’t in one place or easily understood. In their haste to avoid being fined by the regulator, we believe many SME employers are not reviewing the market in any depth before making a choice.
Whilst this website stops short of offering formal financial advice, we do believe that our simple market comparison tool will help make employers more aware that they have a choice and the implications of that choice.
We have also chosen to compare payroll software products, giving superior scores to those payroll products that are investing, at their own cost, in building pension data automation connections to multiple pension providers. It is these payroll software companies that understand that their customers need better tools to lower the burden of automatic enrolment.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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