Week ending 1 November 2019
In the latest Pension Schemes Newsletter HMRC has said that it is aiming to publish high level guidance on tax issues arising from GMP equalisation in December 2019. This will cover:
- lifetime allowance (LTA)
- LTA protection regimes including enhanced, fixed, primary and individual protection
- annual allowance.
However, in terms of serious ill-health lump sums, small pots and trivial commutation, HMRC is only promising a progress update in December.
Crucially, HMRC has indicated that December’s tax guidance will not cover those schemes who wish to tackle GMP equalisation by conversion.
The Continuous Mortality Investigation (CMI) has published its latest quarterly mortality figures for England and Wales which show that cumulative standardised mortality in 2019 is lower than in any of the last ten years. This reflects experience over the first 9 months of 2019, with just the critical final quarter to come.
With Parliament being dissolved next week, the Pension Schemes Bill is now dead in the water. Due to its cross-party support, the Bill is likely to return but its content will depend on who forms the next Government.
In the news this week, the second Lloyds judgement says that historic transfer payments need to reflect GMP equalisation, the Pension Schemes Bill moves back to the Lords, TPR gets tough on AE compliance, the FCA surveys DB transfer advisers again and another buy-in is completed.
This quarter’s Arena has a summary of our recent Pensions Perspective, “Endgame planning comes of age”, which looked at how long-term funding and investment plans are evolving and why companies are increasingly taking the lead in designing an endgame strategy. It also shows all the usual financial and investment analysis for the quarter ending 30 September 2020.
Journey plans or glide paths may have been around for a long time but they’re at the heart of the Regulator’s proposed new funding code. In this Pensions Perspective, Leonard Bowman looks at how long-term funding and investment plans are evolving and explains why companies are increasingly taking the lead in designing an endgame strategy for their schemes.
This quarter’s Arena has a summary of our recent Pensions Perspective, “Emerging from lockdown”, which looked at how best to tackle the most common pension issues which companies are currently facing. It also shows all the usual financial and investment analysis for the quarter ending 30 June 2020.
As we keep hearing, we are living in unprecedented times. However, as we turn our attention to the future, what does the “new normal” mean for defined benefit pension schemes? In this Pensions Perspective, Leonard Bowman considers the most common pension issues that companies are facing and how best to ensure that the company approaches these on the front foot.
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