There is currently a great deal of emphasis on the consolidation of mastertrusts in the market. Perhaps there has not been enough on how this can be achieved in an orderly way, leading to a positive outcome for all.The Pension Schemes Act has begun the process of boosting mastertrust quality, with draft regulations for a stringent authorisation process awaited. The recent review of value assessments of small and medium-sized schemes, mandatory capital adequacy and a review of the charge cap will also help.
First published in Pension Funds Online, 13 April 2017
Colin Richardson discusses the importance of quality and getting value for money.
The terms "value for money" – monitored by IGCs for workplace pensions – and "good value" – assessed by trustees of occupational pensions – are not defined in legislation.
Lifetime Allowance: what is it good for? Absolutely nothing. Fans of Edwin Starr, Frankie Goes to Hollywood or Bruce Springsteen may remember the song “War: what is it good for?”.
We are only at the start of the Pensions Bill journey: published three weeks ago, there is much to be clarified, debated and fleshed out in the final Regulations. Expectations are for draft Regulations in late 2017 and enactment in 2018. That may seem some time away but preparations must be started soon.
Topics: PLSA annual conference
The introduction of Lifetime ISAs is a small and targeted version of a pensions ISA (Pisa). The Chancellor is leaning to Pisa without going there quite yet.
Lifetime ISA: This is good for those eligible, more tax efficient than pensions for the self-employed. Employees would lose out if used as an alternative to pensions if this means losing employer contributions.
The March 2016 budget is surpassing all before in pensions tax speculation. Some commentary has verged on the melodramatic! Context is required. This article sets out the context: it is intended to be policy-neutral.
The announcement of a review into the merging of National Insurance and Income Tax into NIIT was slipped in just before the summer holiday period to less headlines than its cousin: the review of up-front pensions tax relief. But whether deliberate or not, may it be very significant as a first step towards future means-testing of state pensions?
Let’s be clear, the State Pension is a Ponzi Scheme with fewer contributions supporting an ever increasing volume of pensions. The recent move to a flat-rate basic state pension for all was bold but the 50 year costings looked rather “hopeful” in a level projection of share of GDP.
Topics: Defined Contribution
Breaking the golden rule of consulting, (don’t talk to clients about sex, religion or politics unless they raise it: in which case your views are the same as theirs and you let them do the talking), I’m going to stray into the murky world of the party manifestos and the bashing of the pensions system.
Do you remember the Krypton Factor? 1980s television at its worst! The requirements upon all 89 Administering Authorities (AAs) of the Local Government Pension Scheme (LGPS) to EACH appoint a Pension Board by April 2015 has shades of that epic challenge!
Topics: Local Government Pension Schemes