Flexible benefits definition

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Pension freedoms—an introduction

STOP PRESS: On 28 March 2024, the Pensions Regulator (TPR)’s new General Code of Practice came into force, through the Pensions Act 2004 (General Code of Practice) (Appointed Day, Amendment and Revocations) Order 2024, SI 2024/431. The General Code merges and updates ten of TPR’s existing codes of practice into a single code made of ‘51 shorter, topic-based modules’. TPR say this new format will make it easier for governing bodies to find TPR’s expectations and certify whether they meet them. The ten codes of practice affected are those relating to reporting breaches of the law, early leavers, late payment of contributions, trustee knowledge and understanding, MNTs/MNDs, internal controls, dispute resolution—reasonable periods, DC governance and public sector governance.Among other things, the General Code of Practice includes a module on trustee remuneration and sets out TPR's expectations on administration and maintaining an effective system of governance (ESOG), as required by the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018, SI 2018/1103 (which implement IORP II). Scheme governing bodies will be expected to...

Qualifying Recognised Overseas Pension Schemes (QROPS)

Qualifying Recognised Overseas Pension Schemes (QROPS) Why use a QROPS? In practice, many Qualifying Recognised Overseas Pension Schemes (QROPSs) are personal pension schemes or retirement annuities that are marketed for non-UK residents. The main characteristic of a QROPS is that it is the only type of overseas arrangement into which a ‘recognised transfer’ can be made from a UK registered pension scheme. This limitation is embedded in the Finance Act 2004 (FA 2004) which defines, at s 169, a ‘recognised transfer’ as a transfer of sums or assets under a registered pension scheme to another registered pension scheme or a QROPS. For further information, see Practice Note: International pension transfers. The transfer and consolidation of pension benefits is a key motivation for using a QROPS over any other type of overseas pension schemes. Historically, QROPSs have been popular with UK expatriates because they are similar to a UK registered pension scheme, but without many of the investment constraints, regulatory requirements, currency risks and, until 6 April 2017, tax charges,...

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Precedent Defined Benefit (DB) Transfer Form

Precedent Defined Benefit (DB) Transfer Form [ ] PENSION SCHEME REQUEST FOR TRANSFER OF BENEFITS Name:_______________________________________ Date of Birth: __________________________________ Membership Number:___________________________ National Insurance Number: _____________________ Company Name: ______________________________ Address:______________________________________ Date of Joining the Scheme: _______________________ Date of Leaving: ________________________________ To the Trustees of the [ ] Pension Scheme (the ‘Scheme’). I hold benefits in the Scheme and I wish to apply to transfer the value of those benefits from the Scheme as set out below. This includes any benefits which would be payable from the Scheme to my dependants or beneficiaries in the event of my death. I confirm that I have received a statement of entitlement in respect of my benefits in the Scheme which shows the cash equivalent transfer value (CETV) of my benefits as at my guarantee date. I wish to transfer my benefits to the following Receiving Arrangement(s): Name of Receiving Arrangement:___________________________________ Address of Receiving Arrangement:___________________________________ HMRC Registration Number:_______________________________________ DECLARATIONS Decision to transfer out • The decision I have made to...

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What is the single financial guidance body?

Financial Services analysis: What is the single guidance financial body and how will it be implemented? William Sutton, Partner at Reed Smith, explores these questions, the logistics of such an introduction and the possible effects on pension scheme members.