The amount which a member of an occupational pension scheme may require to be applied as a transfer payment to another permitted pension scheme or to a buy-out policy (as per section 94 of the Pension Schemes Act 1993).
FORTHCOMING DEVELOPMENT: On 8 November 2021, the Pension Scams Industry Group (PSIG) announced its intention to update its Code on Combatting Pension Scams to reflect the publication of the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, SI 2021/1237, which came into force on 30 November 2021. The updated version will set out in detail the practical steps those involved in transfers ought to take. This updated version was expected by the end of 2021, but this has been delayed. Note that the current version of the Code was revised and updated to Version 2.2 on 1 April 2021.STOP PRESS: Concerns had been raised about the application of the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, SI 2021/1237 to transfers which involve overseas investments or small-scale incentives. For instance, PensionBee has stated that the regulations ‘appear to have been misused in a variety of inventive ways’, resulting in members being prevented from transferring to their provider of choice.To address this, on 5 July 2022 the Department for Work and Pensions (DWP) and the Pensions Regulator (TPR) have issued a joint statement stating that:• the DWP and TPR continue to review how the regulations work in practice and trustees/scheme administrators are encouraged to share any relevant feedback•
THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL AND PERSONAL PENSION SCHEMESThe Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the 2013 Disclosure Regulations), which came into force on 6 April 2014, lie at the heart of the disclosure regime applicable to occupational and personal pension schemes. However, other disclosure requirements may be found in a piecemeal fashion in other parts of pensions legislation.This Practice Note focuses on the disclosure requirements that exist outside of the 2013 Disclosure Regulations.For information specific to the 2013 Disclosure Regulations, see Practice Note: Disclosure requirements applicable to occupational and personal pension schemes from 6 April 2014.In this Practice Note, references to 'trustees' include the managers of a contract-based scheme.Flexibly accessing pension benefitsWhile the 2013 Disclosure Regulations contain disclosure requirements that are designed to give members with money purchase or cash balance benefits (known as flexible benefits) information about what they can do with their flexible benefits and the available pensions guidance, other information requirements apply under the Registered Pension Schemes (Provision of Information) Regulations 2006, SI 2006/567 from 6 April 2015 to ensure that if an individual accesses their benefits flexibly, the scheme is made aware of this and both the member and HMRC receive the correct tax information. These disclosure requirements apply not only to scheme administrators of
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Bulk Transfer Agreement This Deed of Merger is made on the [insert day] day of [insert date] 2019 Parties 1 [TRUSTEE OF TRANSFERRING SCHEME] (Company No. [ ]) whose registered office is at [address] (the ‘Transferring Trustee’); 2 [PRINCIPAL EMPLOYER OF TRANSFERRING SCHEME] (Company No. [ ]) whose registered office is at [address] (‘Transferring Scheme Employer’); 3 [TRUSTEE OF RECEIVING SCHEME] (Company No. [ ]) whose registered office is at [address] (the ‘Receiving Trustee’); and 4 [PRINCIPAL EMPLOYER OF RECEIVING SCHEME] (Company No. [ ]) whose registered office is at [address] (‘Receiving Scheme Employer’). BACKGROUND (A) The Transferring Trustee is the trustee of the [Name of Transferring Scheme] (the ‘Transferring Scheme’). (B) The Receiving Trustee is the trustee of the [Name of Receiving Scheme] (the ‘Receiving Scheme’). (C) The Receiving Scheme Employer is the Principal Employer of the Receiving Scheme and the Transferring Scheme Employer is the Principal Employer of the Transferring Scheme. (D) Both the Receiving Scheme and the Transferring Scheme are registered pension schemes for the purposes of the Finance Act 2004. (E) [The Receiving Scheme and the Transferring Scheme have both formerly been contracted-out for the purposes of Part III of the Pension Schemes Act 1993. OR The Transferring Scheme was formerly contracted-out for the purposes of Part III of the Pension Schemes Act 1993, whereas the Receiving Scheme has never been contracted out for the purposes of that Act.] (F) [At
Standard order 1.1—financial directions order—longer version In the Family Court Sitting at [Court name] No: [Case number] [ The Matrimonial Causes Act 1973 OR The Civil Partnership Act 2004 OR The Child Support Act 1991 OR Schedule 1 to the Children Act 1989 OR The Inheritance (Provision for Family and Dependants) Act 1975 OR The Matrimonial and Family Proceedings Act 1984 and Schedule 7 to the Civil Partnership Act 2004 OR The Trusts of Land and Appointment of Trustees Act 1996 OR The Married Women’s Property Act 1882 and ss 67, 68 and 74 of the Civil Partnership Act 2004 ] OR The [Marriage OR Civil Partnership OR Relationship OR Family] of [applicant name] and [respondent name] After hearing [name the advocate(s) who appeared] After consideration of the documents lodged by the parties [After reading the statements and hearing the witnesses specified in para [para number] of the Recitals below] Order made by [name of judge] on [date] sitting in [open court OR private OR at a [first directions appointment OR financial dispute resolution appointment OR case management hearing OR WARNING: IF YOU DO NOT COMPLY WITH THIS ORDER, YOU MAY BE HELD TO BE IN CONTEMPT OF COURT AND YOU MAY BE SENT TO PRISON, BE FINED, OR HAVE YOUR ASSETS SEIZED. [ The parties 1 The applicant is [applicant name] The [first] respondent is [respondent name] [The intervener is [intervener’s names] Further respondent[s]: [further respondents’ names]] [Specify if any party acts by a litigation friend] Definitions 2 Children of the
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Can a pension sharing order be expressed by reference to a lump sum rather than a percentage? A pension sharing order must be expressed as a percentage of the pension arrangement’s cash equivalent (CE) value—it is not possible to fix an amount and the CE figure that is eventually shared will invariably be different on implementation (calculated on valuation day) than the figure that was obtained for disclosure purposes (calculated on the valuation date). This follows the provision in section 21A(1) of the Matrimonial Causes Act 1973, which provides: ‘…a pension sharing order is an order which— (a) provides that one party's— (i) shareable rights under a
Where a residuary beneficiary wishes chattels to be appropriated to them in respect of their share of the estate, do all other residuary beneficiaries have to agree to this when the Will is silent on appropriation? Summary If the Will is silent on appropriation, the statutory power of appropriation will apply, enabling chattels to be appropriated to the residuary beneficiary in respect of their share of the estate. The consent of the other beneficiaries is not required. However, the personal representatives (PRs) should be mindful of their duty to act in a way that is just and reasonable when deciding on the appropriation of the deceased’s assets, having regard to the respective rights of all persons interested in the deceased’s estate. If such appropriation is made to a residuary beneficiary and satisfies only part of their ultimate entitlement, account will be taken of the appropriated property at its cash value at the date of appropriation per Re Richardson. Appropriation In the absence of express provision in the Will, the statutory power of appropriation under section 41 of the Administration of Estates Act 1925 (AEA 1925) will apply. See Practice Note: Personal representatives and trustees—power of appropriation. AEA 1925, s 41 provides that PRs may appropriate any part of the deceased’s real or personal estate, including choses in action, in its actual condition or state of investment at the time of appropriation,
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Pensions analysis: In Giddens, the court examined the impact of (in particular) section 32 of the Limitation Act 1980 (LA 1980) on claims relating to fraudulent investment advice commenced outside the primary limitation period; the court applied the test laid down in FII Group Litigation v Revenue and Customs Comrs (formerly Inland Revenue Comrs)  UKSC 47 and held that time ran from the point when the claimant first knew, or could with reasonable diligence have discovered enough about the fraud to justify embarking on the preliminaries to the issue of proceedings, such as submitting a claim to the proposed defendant, taking advice and collecting evidence. In adopting this test the court recognised that it may mean that time starts running earlier than under the so-called ‘statement of claim’ test which had been generally applied in earlier cases to assess a claimant’s position under section 32 (in relation to when they first discovered or should by the exercise of reasonable diligence have ‘discovered’ the fraud) by reference to their knowledge of matters which would enable them to plead a claim. Written by John Virgo, barrister at Guildhall Chambers, London and Bristol.
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Before a solution can be found to the pensions problem in any individual case, the practitioner must have investigated the pension rights which each of the parties has following disclosure. It must be borne in mind that there may be pension rights from a former employment or self-employment which have not been transferred into the pensioner’s pension. An attempt must then be made to assess the value of the losses involved.
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