7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

• The Police Pensions and Police (Injury Benefit) (Amendment) Regulations 2015
• Debate on the impact of SPA equalisation on women
• Equitable Life Payment Scheme – further payments
• HMRC issues latest “Countdown bulletin” on the abolition of DB contracting-out
• MAS consults on 2016/17 business plan

The Police Pensions and Police (Injury Benefit) (Amendment) Regulations 2015

The Police Pensions and Police (Injury Benefit) (Amendment) Regulations 2015 were laid before Parliament on 18 December 2015 and will come into force on 18 January 2016.

The legislation amends the Police Pensions Regulations 1987 and the Police (Injury Benefit) Regulations 2006 to allow widows or surviving civil partners in receipt of pensions or gratuities under those regulations to retain those pensions or gratuities in the event they marry, remarry, form a civil partnership or start to cohabit with someone else as husband or wife or as civil partners. The change only applies to widows or surviving civil partners who marry, remarry, form a civil partnership or start to cohabit after 1 April 2015 and who are in receipt of a special award under the Police (Injury Benefit) Regulations 2006 at that time. The change will be retrospective to 1 April 2015.

The Police (Injury Benefit) Regulations 2006 have also been amended to correct a minor drafting error that was included when they were made in 2006.

Debate on the impact of SPA equalisation on women

On 7 January 2016, MPs will take part in a debate in the Commons Chamber on a motion relating to the effect of the equalisation of SPA on women. This debate has been scheduled by the Backbench Business Committee following a bid from Scottish National Party MP Mhairi Black, following concerns about the communication of the changes in particular.

Equitable Life Payment Scheme – further payments

Equitable Life pensioners on low incomes have received an average payment of around £300 from the Government.

The Government set up the Equitable Life Payment Scheme in 2011 to make to make “fair and transparent” payments to policyholders who suffered financial losses as a result of Government maladministration which occurred in the regulation of Equitable Life. The scheme has so far paid out over £1bn to over 920,000 people, representing almost 90% of eligible policyholders, and 93% of the money due.

The recent payments deliver on the commitment made at the 2015 Summer Budget to double the payments to Equitable Life policyholders who receive Pension Credit, and who had only received a part payment under the Equitable Life Payment Scheme.

The scheme closed to new claims on 31 December 2015.

HMRC issues latest “Countdown bulletin” on the abolition of DB contracting-out

On 22 December 2015, HMRC published issue 12 of its contracting out Countdown Bulletin, which provides further guidance for pension scheme administrators ahead of the end of contracting-out on 5 April 2016. Amongst other things, this bulletin provides information on:

• the Scheme Reconciliation Service
• the GMP Service
• Pension Forums to be held in 2016
• late notification of Contribution Equivalent Premiums
• a DWP update, including information on the Contracted-out Pension Equivalent (COPE).

MAS consults on 2016/17 business plan

On 22 December 2015, MAS published for consultation its 2016/17 business plan, which includes its corporate strategy. The deadline for comments is 15 February 2016, with the final business plan due to be published in March 2016.

Amongst other things, the paper notes that MAS “will continue to be a leading participant, partnering with Government and industry, in the work to develop a ‘Pension Finder’ tool. This will make it easier for people to trace and get information about their pension savings.”

It also states that MAS has made the suggestion to HMT that “if money guidance and pension guidance were more closely linked, there would be scope to deliver a more coherent, integrated service that has a greater impact on people’s ability to manage the complexities of budgeting and savings, and the choices they face as they approach retirement”.