Recognised overseas pension schemes notification list 19 June 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. 37 schemes have been added to the list and 2 have been amended.
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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Public sector staff pay twice as much into pension pots 21 June 2017
Workers in the public sector are saving twice as much into their pensions than those in the private sector, with the gap widening over the past four years.
Figures from the Department for Work and Pensions show that public sector workers saved an average £8,418 into workplace pensions in 2016, an increase of 8 per cent from £7,811 in 2012.
By contrast, those in the private sector saved £4,098 in 2016, 38 per cent less than they did in 2012 when average contributions were £6,627.
According to a report from the Financial Times , pension experts said the gap was exacerbated by the introduction of automatic enrolment. Alistair McQueen, head of saving & retirement with Aviva pensions provider said:
“Millions of workers have been brought into saving through this policy but the minimum contributions of 2 per cent (combined employee and employer) have led to many employers levelling down their contributions from previously higher levels.
What has happened is that private sector employer contributions have been diluted by automatic enrolment whereas they have not been for 5m workers in the public sector.
Around 16m private sector workers could be headed for disappointment in retirement if they do not increase their savings rates to around 12.5 per cent,” said Mr McQueen.
According to separate ONS data, average pension contribution rates in the private sector fell from 9.6 per cent in 2012, when auto-enrolment was launched, to 3.9 per cent in 2015.
Minimum automatic enrolment contributions from both employees and employers are scheduled to rise to 5 per cent in 2018 and 8 per cent by 2019, with no current plans to increase from there. Last year the government launched a review of automatic enrolment but it did not cover contribution rates.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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