Changing scheme benefits – the all new section 67


From 6 April 2006, employers and trustees contemplating changes to occupational pension schemes will have to contend with a significantly revamped section 67 of the Pensions Act 1995. The source of the new sections 67 through to 67I is the Pensions Act 2004 (PA 2004). The intention is to give schemes greater flexibility to introduce changes, with the trade off being that for some there will be even more hoops through which to jump to safeguard members’ rights. Draft regulations which will supplement the provisions under PA 2004 are currently in the pipeline. However, on 8 July 2005, TPR published a draft code of practice for consultation – “Modification of subsisting rights”. Here we outline the new look section 67 and TPR’s current thinking.

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