Budget 2014 – can your scheme pay out the new lump sums?

Shaul Steinberg 4 April 2014

The 2014 Budget included an announcement that the limits on trivial commutation and other small lump sums would increase from 27 March. Several of our trustee clients have queried whether they can go ahead and make payments to members on the new basis. There are a couple of points to watch out for: Read the rest of this entry »

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Equalisation: a judicial change of approach?

Jason Shaw 14 February 2014

The knotty question of whether a pension scheme has been properly equalised or not is an issue that the industry has been grappling with for over 20 years – and it’s still causing headaches.  The story will be familiar to most of us: “The trustees thought we’d equalised retirement ages, the company thought we had, members were told we were equalising to age 65, the scheme’s been administered on that basis for years and no members have ever suggested otherwise – so why are the lawyers now saying we haven’t equalised properly?”.

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DC retirement processes – what should trustees be doing?

Caroline Overton 16 January 2014

 One of the first stories to hit the pensions press this year has been the debate about switchable annuities. Insurers have reacted strongly against Steve Webb’s plans for pensioners to be able to change their provider to access a better deal elsewhere. His thinking is that members may not always be getting the best deal at retirement. Whilst there may be no agreement on the proposal, there is a general consensus that members could be better engaged and supported in the lead up to retirement – the decumulation process. As is well known, trustees have a duty to administer a scheme in members’ interests. So they must make sure that they regularly review their processes for supporting members in securing a retirement income. This is now backed by the Regulator’s Code of Practice which all DC schemes have to comply with (DC arrangements in trust-based pension schemes: the new regulatory framework). Read the rest of this entry »

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Pension scheme trusteeship and responsibility for the past – look before you leap

Jonathan Goodwin 25 November 2013

What does a new pension scheme trustee need to know about things that happened before he became a trustee?  And could he be liable for previous trustees’ acts or omissions?  My cautionary tale delves into the risks.

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Pensions liberation: Are trustees stuck between a rock and a hard place?

Emma Bichard 30 October 2013

Are pension scheme trustees stuck between a rock and a hard place? It would seem so, as following the Pensions Regulator’s warnings trustees must decide whether to comply with their duty to facilitate a valid transfer request or delay suspicious requests risking regulatory action. But how easy is it for trustees to be sure pension liberation fraud is taking place? Not very is the answer we have received from trustees and administrators who have reported numerous difficulties in investigating receiving schemes. That means that trustees rarely feel they have sufficient evidence to delay a request, especially when faced with the risk of regulatory action.

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