Sacker & Partners partner Zoe Lynch said the figures made "uncomfortable reading". "The news that one in three workers may opt-out of pension saving despite being automatically enrolled is depressing reading for anyone. This will leave many in poverty in retirement and taxpayers having to continue to fund pension benefits for those without their own provision. "Pension provision is an issue with which the country is already grappling. It has already led to disputes with unions relating to plans to revise public sector provision as part of a wider austerity programme. To think that circumstances will be no better - perhaps worse - for our children makes for uncomfortable reading." She added: "The ‘why' is important. If it boils down to affordability that is one thing - who can afford to make pension contributions when they can't heat their house? But if fundamental lack of trust is to blame, the pensions industry must make strides to better understand and to engage with the public. The possibility of a low take up could drive up charges, which are already a potentially damaging subject for the industry. If they get worse this could reduce take up even further." The CIPP has an online Specialist Interest Group (SIG) for all information relating to Pensions Reform. To register for the SIG, email info@cipp.org.uk with your membership number. 13 March 2012 HMRC have published revised guidance and forms to be used for transfers on or after 6 April 2012. Transfers of pension savings can be made free of UK tax where it does not exceed the lifetime allowance. The intention is that someone who leaves the UK and takes their pension savings with them will be in broadly the same position as someone who remains in the UK with their pension savings. It is not intended to provide a way to pay amounts that are not allowed under UK rules. Nor is it intended to provide more tax relief than would have been available in the UK. New rules from 6 April 2012 The rules on transferring pension funds from a UK registered pension scheme to an overseas pension scheme are changing from 6 April 2012. There are new conditions that a pension scheme must meet to be a Qualifying Recognised Overseas Pension Scheme (QROPS). There are also new information and reporting requirements and shorter reporting time limits. These changes will affect: an individual transferring their pension savings TRANSFERS TO OVERSEAS PENSION SCHEMES (QROPS)
a UK registered pension scheme making a transfer to a QROPS a QROPS that receives or has received a transfer from a UK scheme Follow this link for further information from HMRC
QROPS COUNTDOWN TO Q DAY
21 March 2012 Any members dealing with QROPS may be interested in a summary of the main changes coming into force on 6 April 2012, aka Q-Day.
CIPP Policy News Journal
09/10/2012, Page 180 of 234
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