PENSION INDUSTRY BUSINESS UPDATE ISSUE 5
11 April 2013
National Insurance Services to Pensions Industry have published an update for March 2013.
The update includes information about:
NISPI Website Scheme Cessation Current Issues Change of contracting-out status Forms CA9174 & CA9175 Shared workspace memebershop2013 GMP increase and section 148 orders Single-tier pensions Change of GMP revaluation rate on buy-out National Insurance and Pay As You Earn Service (NPS) Processing Dates 2013-14 COCIS update
PENSION LIBERATION – THE ISSUES AND THE TAX IMPLICATIONS
23 April 2013
HMRC has provided some information about the subject of Pension Liberation which aims to explain what Pension Liberation is and what the significant tax implications are, amongst other things, the guidance highlights that there are no legal loopholes for liberating your pension. Pension Liberation - the cost of accessing or unlocking your pension early, looks to explain fully how it works and most importantly highlight the risks that you are taking by deciding to take some or all of your pension early. As Pension savings are intended to provide for retirement, there are strict rules as to when money can be taken out of a pension scheme before you turn 55 and should you decide to transfer and take some or all of your pension savings early there will be a substantial tax charge to pay. Unscrupulous firms are using misleading information to promote personal loans or cash incentives in an attempt to entice savers to access their pension pots early. Very often they say there is a legal loophole so you don't pay tax. There is no legal loophole.
LATE PAYMENTS STATISTICS INCREASE COULD SIGNAL BIGGER PROBLEMS
23 April 2013
An increase to the number of later payments to pension schemes could be indicative of bigger problems for employers.
Pinsent Masons have reported that there was a 35% increase in the number of late payments to pension schemes flagged by the Pensions Regulator in 2012. Trustees of pension schemes are legally required to inform the regulator when contributions from employers are received late, particularly if they remain unpaid after 90 days and are of "material significance".
"Time and again we have seen in insolvency proceedings that when companies are in distress pension payments are deferred or not paid at all in an attempt to free up cash,"
CIPP Policy News Journal
16/04/2014, Page 418 of 519
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