Policy News Journal - 2011-2012

IFAonline have written a useful article outlining the main changes of the draft legislation. · The reporting period to HMRC on events will be extended to 10 years of non- residency after the member transfers into QROPS (previously this was five years.) · Payments by QROPS to be reported to HMRC within 60 days (this used to be a year.) · No more than 30% of a QROPS to be taken as a lump sum. · Reporting duties to continue for any scheme that ceases to be a QROPS · Jurisdictions must apply the same tax exemption on pensions to residents and non- residents Follow this link to read the full article 20 July 2011 The government will start formal consultations on increasing public service pension contributions in 2012-13 by the end of this month. They have made clear that lower earners should be protected from the impact of any contribution increases and have proposed that there should be no increase in member contributions for those earning under £15,000 and no more than a 1.5 percentage point increase in total (before tax relief) by 2014-15 for those earning up to £21,000. Follow this link to read the full press release from the Treasury 10 August 2011 Councils have been given just six weeks to come up with a package of reforms to cut £900m from taxpayer contributions to the Local Government Pension Scheme. Professional Pensions reports: In a letter seen by PP, Department for Communities and Local Government minister Eric Pickles asks LGPS officials to deliver proposals to save the equivalent of 3.3 percentage points in employee contributions by 9 September this year. The Treasury wants the LGPS to make £900m savings by 2015 in addition to the £2.8bn saved from reforms to the other public sector schemes as part of Lord Hutton’s recommendations. A 12 week statutory LGPS consultation will launch at the start of October, just three weeks after the DCLG deadline. LGPS GIVEN SIX WEEK DEADLINE FOR REFORMS Public Sector Pensions TREASURY STATEMENT ON PUBLIC SECTOR PENSIONS

CIPP Policy News Journal

09/10/2012, Page 181 of 234

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