HMRC have published the June 2012 edition of the Pension Schemes Newsletter .
The contents of the latest Newsletter includes:
Fixed protection Automatic enrolment into a workplace pension scheme Contracting-out forms - APSS155, APSS155A, APSS155B and APSS101 Scottish income tax update
Registered Pension Schemes Manual (RPSM) QROPS Frequently Asked Questions (FAQs) Note to Independent Financial Advisors.
PENSIONS INDUSTRY BUSINESS UPDATE
11 June 2012
The latest edition of the Pensions Industry Business Update from HMRC is now available.
The Pensions Industry Business Update was previously known as the National Insurance Services to Pensions Industry Newsletter (NISPI).
The latest issue includes Information for DB schemes about the consequences of the abolition of contracting-out for DC schemes, changes as a result of the RPWB (Retirement Pensions/Widows Benefits ) process review and an update on the re-structure of scheme cessation.
Pensions Industry Business Update - May 2012
PENSIONS INCENTIVE EXERCISES - NEW CODE OF PRACTICE
20 June 2012
Employers and those advising on pensions incentive exercises, which offer members incentives to transfer their pension rights or accept changes to them, should now comply with a voluntary code of practice.
The code gives clear guidance for employers looking to manage defined benefit liabilities in this way, but forbids the use of cash incentives.
The code covers the following types of incentive exercises:
transfer exercises (where the member is offered an incentive to transfer defined benefit rights out of the scheme – such as an enhanced transfer value, or a transfer to an immediately vesting annuity or income drawdown arrangement); and modification exercises (where members may change the terms of their accrued defined benefit rights usually within the scheme – typically by offering enhanced pension income if the member surrenders all or part of their future pension increases).
The code also sets out seven principles:
1. No cash incentives should be offered that are contingent on the member accepting the offer. This includes incentives such as additional salary increases. Relatively small cash incentives designed to encourage members to engage with the exercise, and which are not conditional on the incentive offer being accepted, are permissible.
CIPP Policy News Journal
12/04/2013, Page 267 of 362
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