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:

• Department for Work and Pensions
• Financial Conduct Authority (FCA)
• HM Revenue & Customs
  
• Pension Protection Fund
• Besttrustess PLC V Kaupthing Singer & Friedlander Limited (in administration)

Department for Work and Pensions

Automatic Enrolment

On 8 August 2013, the DWP published findings from its research into opt-out rates from automatic enrolment.

The qualitative research of the 50 biggest employers shows that on average just 9% of people have opted out. Previously, DWP research with workers across all business sizes found that 30% were likely to opt out.

The findings also suggest that young people are leading the way in the savings revolution, with more under 30s staying in a pension scheme than other age groups.

Overall participation in workplace pensions has increased among the employers surveyed from 61% to 83%.

Financial Conduct Authority (FCA)

Four new supervision directors appointed

The FCA has appointed four directors to lead key areas of its Supervision division:

• Karina McTeague as director of retail banking;
• Linda Woodall as director of mortgages & consumer lending;
• Nick Poyntz-Wright as director of long-term savings & pensions; and
• William Amos as director of wholesale banking & investment management.

HM Revenue & Customs

Pension Newsletter 58

On 12 August 2013, HMRC published Newsletter No. 58. It includes information on:

• Fixed Protection 2014 (FP2014) – The standard lifetime allowance (LTA) will reduce from £1.5 million to £1.25 million from tax year 2014/15. Individuals can choose to protect their LTA from 6 April 2014 at the 2013/14 level of £1.5 million by applying for FP14. However, the ability to accrue further benefits is very limited. Applications should be made online on or before 5 April 2014;
• Fixed Protection 2012 (FP2012) – For tax years from 2012/13 onwards, the LTA was reduced from £1.8 million to £1.5 million. As members of pension schemes might have already built up savings of more than £1.5 million (or had planned to do so,) FP12 was introduced. It allows individuals to crystallise benefits worth up to £1.8 million without incurring a LTA charge. However, the ability to accrue further benefits is very limited.
• Individual Protection 2014 (IP2014) – IP2014 will give individuals a personalised LTA based on the value of their pension savings at 5 April 2014 (up to £1.5 million). It will allow individuals to continue pension saving after 5 April 2014 whilst protecting tax relieved pension savings that have accrued up to that date, subject to an overall maximum of £1.5 million;
• changes made to pensions tax legislation by the Finance Act 2013 – for example, changes to the LTA, the annual allowance and bridging pensions; and
• an update on Qualifying Registered Overseas Pension Schemes (QROPSs) for scheme administrators of UK registered pension schemes.

New forms for QROPSs

HMRC has published new versions of QROPS forms:

• APSS 262 – Transferring UK tax-relieved pension assets; and
• APSS 263 – Member information.

The forms have been amended due to new Registered Pension Schemes (Provision of Information) (Amendment) Regulations 2013.

The new regulations for recognised transfers apply to transfer requests made by the member from 12 August 2013.

FP2014

HMRC has published updated guidance, a new tool and forms so that pension scheme members who qualify, can apply for FP2014.

Pension Protection Fund

Four firms appointed to new trustee advisory panel

Aiming to provide greater certainty for its members, the PPF has appointed four firms to its new Trustee Advisory Panel (TAP).

This panel is the latest development in a programme which is designed to push pension schemes through the PPF assessment and Financial Assistance Scheme (FAS) wind-up more efficiently. It follows the implementation of the Actuarial Panel and the Specialist Administration Services Panel which were set up during 2011/12 and is expected to be followed by the launch of an Assessment Process Legal Panel and an Auditors’ Panel, later on in the year.
TAP is expected to start work on 2 September 2013. All of its members will work with Insolvency Practitioners, incumbent scheme trustees, and panel members before, during and after the post assessment period as well as the FAS wind-up.

Schemes that entered the assessment or FAS wind-up period prior to 2 September 2013 will continue to be run by their appointed trustees.

Invoicing pages updated

The PPF expects to begin invoicing for the 2013/14 pension protection levy in September 2013. With this in mind it has updated the invoicing pages of its website.

The new information includes an updated guide on how the invoice is calculated, sample invoices and updated FAQs.

Besttrustess PLC V Kaupthing Singer & Friedlander Limited (in administration)

Click here to read a summary of this case.