new freedoms they have got, I think many people will want to talk further to someone who can help and that seems to me to be an adviser." He added: "I see this as an opportunity. I think providers will innovate on products and there will be much more appetite from people to understand the issues and come to people who can give them personal tailored advice which, as financial advisers, you can do." The minister also confirmed the government was looking at issues surrounding the recycling of tax relief when Budget freedoms are implemented - which would allow people over the age of 55 to invest in a pension and then immediately withdraw it as cash, taking advantage of the 25% tax-free lump sum to make a profit. Webb said: "We have already identified there is an issue with people recycling tax relief and are looking at how we address it now - ideally without changing the fundamentals of the tax relief model."
Revised code of practice on defined benefit funding
16 June 2014
The Pensions Regulator has published a draft code of practice on defined benefit (DB) funding.
The Pensions Regulator says that their new draft code of practice on defined benefit (DB) funding will help trustees and sponsoring employers agree funding plans that provide security for retirement savings, whilst enabling employers to invest in sustainable growth. The draft code is part of a significant change in their approach to DB schemes. It recognises that a strong ongoing employer alongside an appropriate funding plan provides the best support for a well-governed scheme.
More employers seeking pension advice for senior staff
17 June 2014
The ever changing world of pensions and the massive increase in flexibility around access to pensions from next year mean more and more employers are seeking ways of providing guidance to their staff. There is already a demand for this type of service for their senior staff. Commenting on the increase in demand, Bhargaw Buddhdev, Actuary and Expert on Executive Pensions issues at Barnett Waddingham says: "Face to face pension advice meetings can be expensive and therefore are not offered by employers to their entire workforce. However, increasingly, employers are opting to help their senior staff so that they can concentrate on their day jobs and not worry about pension issues. "Many employers already pay for private medical cover for their senior staff so they do not have to join queues at NHS hospitals for medical treatment. Extending this principle, more and more employers are appointing consultants like myself to provide "face to face" meetings for senior staff who are affected by the reduction in the Annual Allowance and the Lifetime Allowance. The consultant's role can be anything from educating the individual on how the changes will affect them, to providing detailed individual guidance on how to choose their retirement options to minimise the effect of tax changes on their personal circumstances.
"Just like private medical benefits, such "face to face" meetings are taxable benefits for
CIPP Policy News Journal
08/04/2015, Page 378 of 521
Made with FlippingBook - Online magazine maker