events occurring following that restructure, the impact of the fire at Daw Mill and the rationale for the regulator’s subsequent decisions.
Stephen Soper said: “Sadly, the initial opportunity to survive and rebuild its fortunes - gained through the initial restructuring of UK Coal - was taken away by a catastrophic fire in the group’s main Daw Mill mine in early 2013. Our role in this new situation was to work with the parties concerned to reach the best available outcome for pension scheme members and the PPF. With greatly increased business challenges and risks, the regulator’s view was that balancing the needs of the company and the scheme was no longer possible." The regulator notes that subsequent to the completion of the 2013 restructuring, UK Coal has been obliged to participate in a further restructuring, which is expected to result in a managed closure of the business. In July 2014 the PPF took on the assets and liabilities of the UKCOL Sections of the Industry Wide Coal Staff Superannuation Scheme and the Industry Wide Mineworkers’ Pension Scheme, and will provide compensation for their 7,000 members.
New pensions research
17 November 2014
The annual Employee Benefits/ Close Brothers pensions research with employers for 2014 shows the impact of recent pension reforms on staff.
Key findings in the research report indicate
A welcome for the abolition of compulsory use of annuities A loud call for guidance and advice about employee decisions An increase in employer costs since auto enrolment reported by 66% of respondents.
Labour proposes review of pension freedoms
18 November 2014
The government will have to review the pension flexibilities introduced in the Taxation of Pensions Bill within six months if an amendment tabled by Labour is passed and obliges the government to carry out a review.
Many thanks to Professional Pensions for their report on the amendment to the Bill which was proposed by Labour MP Cathy Jamieson.
She said that the review would include analysis of the impact the changes had on the use of salary sacrifice arrangements. This is over a concern that employees could exploit the potential tax advantages of salary sacrifice with the tax-free benefits of pension saving and later take their pot as cash. In a public bill committee debate, Jamieson raised a concern that the government had failed to fully consider the tax effects of the changes. She said: "Has there been enough focus on the taxation implications and has that been considered enough in the discussion about putting the guidance guarantee in place?"
The review would also look at how the freedoms have affected revenues at the Treasury, as well as the effect on the purchase of annuities.
CIPP Policy News Journal
08/04/2015, Page 406 of 521
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