“However, there is little question that in a non-associated multi-employer scheme a departing employer must cover its liabilities to the scheme. So we will need to look carefully at the details of the proposed changes to ensure that the right balance of member protection and employer flexibility is achieved. The strength of the ongoing relationship between employers and the scheme is essential to ensuring this.”
The consultation will run until Thursday 18 May 2017.
See ‘ The draft Occupational Pension Schemes (Employer Debt) (Amendment) Regulations 2017 ’ for full details.
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Recognised overseas pension schemes notification list 28 April 2017
The list of Recognised Overseas Pensions Schemes (ROPS) notifications has been updated.
The list is of schemes that have told HMRC they meet the conditions to be a ROPS and have asked to be included on the list. Three schemes have been added to the list.
An updated list of ROPS notifications is published on the first and 15th day of each month. If this date falls on a weekend or UK public holiday the list will be published on the next working day. Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected. The requirements to be a ROPS changed from 6 April 2017. You’ll need to check that the scheme you’re transferring to on or after that date meets the new requirements. HMRC can’t guarantee these are ROPS or that any transfers to them will be free of UK tax. It’s your responsibility to find out if you have to pay tax on any transfer of pension savings. HMRC will usually pursue any UK tax charges (and interest for late payment) arising from transfers to overseas entities that don’t meet the ROPS requirements even when they appear on this list. This includes where the ROPS requirements have changed and where taxpayers are overseas. HMRC will also charge penalties in appropriate cases.
Find out about the changes for ROPS requirements .
Tax relief is given on pensions to encourage saving to provide benefits in later life. Accessing benefits (directly or indirectly) before age 55 will result in a liability to UK tax charges in all but the most exceptional circumstances. You should seek suitable professional advice including from a regulated financial adviser.
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Independent review of the State Pension age 2 May 2017
‘Smoothing the Transition’ is the final report on the review into factors affecting the future State Pension age timetable.
John Cridland CBE was appointed in March 2016 to carry out an independent review into factors affecting the future State Pension age timetable, as set out in the Pensions Act 2014 .
Geographical extent – The Pensions Act 2014 covers England, Scotland and Wales only. The Pensions Act (Northern Ireland) 2015 covers Northern Ireland.
To follow is a summary of the recommendations made in the report:
Timetable
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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