Lump sums

Can’t pay? Have to pay – correcting underpaid lump sums

Helen Powell

It’s not uncommon for a pension scheme to discover that a mistake has led to a pension being put into payment at less than the correct amount. There are helpful regulations to deal with payment of pension arrears, and plenty of industry experience of dealing with this kind of problem. What trustees can’t easily do, Read More

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

Shaul Steinberg

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 More

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The puzzle of pension scheme death benefits

Francesca Parnell

Nothing is certain but death and taxes…I always thought this was quite a good proverb before I became a pensions lawyer. But after helping various trustee clients through lump sum death benefits and children’s and dependants’ pensions, I now know that not much is less certain than the distribution of death benefits. Lump sums are Read More

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Protected rights problem: risk to short service refunds from pension schemes

Sonya Fraser

I’ve been considering the impact of the abolition of protected rights since last summer and yet new issues keep coming out of the woodwork!  The latest is the possibility that paying short service refund lump sums from a pension scheme where the member has ex-protected rights could be an unauthorised payment unless the scheme rules Read More

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Cashing out small pensions, the lifetime allowance and the law of unintended consequences

Helen Powell

Quite a few of our clients have already cut scheme administration costs by cashing out low value benefits, including pensions in payment which in some cases cost more to pay out each year than the annual pension is actually worth.  Other clients are still thinking about it – but change is in the wind and Read More

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