The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
However, where an employer pays fees to an external provider for one-to-one sessions to provide advice to employees, as a general principle, a tax charge will arise on the cost of the advice as this represents an employment- related benefit.
With effect from 6 April 2017 a new Income Tax exemption will be available to cover the first £500 worth of relevant pensions advice provided to an employee.
The published update explains HMRC’s approach to pensions advice up to 5 April 2016 i.e. Employment Income Manual EIM21802 and for tax years 2017 onwards Employment Income Manual EIM21803.
The Employment Income Manual will be updated once the Finance Bill 2017 receives Royal Assent.
If you have any comments, or queries, on this draft guidance please contact the Employment Income Policy team .
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State Pension Age should increase and employers should have elder care policies in place 24 March 2017
Two reports for the Government to consider have been published which turn our attention once again to the subject of the State Pension Age, life expectancy and financial sustainability of long term periods of retirement.
Independent review of the State Pension age
The report from John Cridland looked at the key issues that drive State Pension age changes including, but not limited to: life expectancy the challenges faced by those who rely most on the State Pension the long-term financial sustainability of the system. In his report, which will be considered before any decision is made on changes to the State Pension age timetable after 2028, Mr Cridland makes a number of recommendations which include: State Pension age should rise to 68 between 2037 and 2039 State Pension age should not increase more than 1 year in any 10 year period, assuming that there are no exceptional changes to the data used that all employers should have elder care policies in place which set out a basic care offer that people should be able to access a mid-life career MOT and review which should be facilitated by employers and by the government using online support and through the National Careers Service.
For full details of John Cridland’s report please read Independent review of the State Pension age .
Periodic review of the rules about State Pension
The Government Actuary’s Department (GAD) was asked to consider 2 alternative scenarios for the State Pension age, reflecting an adult in receipt of the State Pension for either 32% or 33.3% of their projected adult life in retirement. To do this it used figures drawn from life expectancy projections from the Office for National Statistics.
Meanwhile, the Government Actuary’s Department report concluded in their report Periodic review of rules about State Pension age that:
under a 32% scenario the State Pension age could rise to 69 between 2040 and 2042 under a 33.3% scenario the State Pension age could reach 69 between 2053 and 2055.
No new changes to State Pension age will come into effect before 2028 and the government is committed to maintaining a State Pension that is fair for all generations and helps to provide for the cost of living in retirement. Part of this commitment to fairness includes providing 10 years’ notice of any changes to the State Pensions age.
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