Employers often ask “can I promote my pension scheme?” Their concern is that they might be giving financial advice when they are not authorised to do so by the FSA (or whichever body takes over this role – insert potential acronym of choice) – or that an employee might have the shirt off their back if the advice turns out to be wrong. However there is less to fear than you might think, both for occupational pension schemes, and, thanks to some recent changes in financial promotion rules, for group personal pensions and stakeholder plans.
Archive for June, 2010
Mervyn posted on the clash of public policies exposed by the IMG case back in February. Last week the appeal was heard in the Court of Appeal. Since the High Court’s decision last year, I have had a number of queries from clients who are concerned about the seemingly broad interpretation given in the High Court decision to section 91 of the Pensions Act 1995, which prevents members from giving up their pension entitlements.
For better, for worse; in sickness but not in health?
Payment of a scheme pension to a pensioner can bear a certain resemblance to a marriage. That’s to say, there’s a formal relationship between the pension scheme and the member intended to last for the rest of the member’s life, and generally death alone can sever the commitment. Like a marriage, when a member becomes incapacitated, calculating pension payments can get more tricky. There are convoluted rules to reducing and reinstating ill-health early retirement pensions which trustees need to know about – what are they? (more…)