The DWP do recognise that the industry needs a clear indication of who is going to be involved in the system in advance and will provide further information on who is included ahead of consultation on regulations later in the year.
Pension flexibility: new options from 6 April 2015
13 February 2015
HMRC has published guidance on the changes to defined contribution pensions savings access, including details on how the options are to be taxed.
From 6 April 2015, from age 55, individuals can access as much of their defined contributions pension savings as they wish. There will be three main options but any combination of these can be used. Lifetime annuity As you can now, you will be able to use some or all of your funds to buy an annuity which will be payable at least for the rest of your life. When you buy an annuity you can take a tax free lump sum of up to 25% of your pension pot at the same time. Flexi-access drawdown As you can now, you will be able to put funds into drawdown. From 6 April 2015 there will be no limits on how much or how little you can take from your drawdown fund each year. When you put funds into drawdown you can take a tax free lump sum of up to 25% of your pension pot at the same time. Lump sum payment From 6 April 2015 you can take money direct from your pension pot without having to buy an annuity or put the money into drawdown, and 25% of this sum will be tax free. This is called an ‘uncrystallised funds pension lump sum’ (UFPLS).
Visit GOV.UK for full details.
Qualifying Recognised Overseas Pension Schemes (QROPS) update
17 February 2015
HMRC has published an update to the QROPS list.
QROPS is a list of pension schemes that have notified HMRC that they meet the conditions to be a Qualifying Recognised Overseas Pension Scheme - and have asked to be publicly listed.
Better Workplace Pensions
18 February 2015
The Government has published its response to the consultation Better workplace pensions: Putting savers’ interests first.
The consultation was conducted between October and November 2014. It sought views on draft regulations to improve the governance of workplace occupational pension schemes providing money purchase benefits. And also views on proposals in relation to charges in occupational pension schemes that provide money purchase benefits used for automatic enrolment, as well as whether the drafting of the draft charges regulations achieve the policy intention.
CIPP Policy News Journal
08/04/2015, Page 422 of 521
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