What you need to know

The pensions industry can be complex, with changes in legislation and regulation that regularly affect pensions schemes in the UK, it can be a lot to take on board.

To help you get to grips with it all, we have summarised the main developments:

State pension provision

The current system
The current system of state pension consists of:

  • The basic State Pension
  • The State Second Pension

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Implementation of the single-tier pension
A single tier state pension will replace the current two-component system of the basic State Pension and the State Second Pension from 6 April 2016... Read more
The end of contracting-out
To reflect the end of the State Second Pension for those reaching State Pension age on or after 6 April 2016, contracting-out will end at that time.

Changes to the State Pension age
The State Pension age is scheduled to increase to age 67…Read more

Workplace pension provision

Types of workplace pension
There are two MAIN types of workplace pension provision…Read more
Budget 2014 changes
The 2014 Budget introduced major changes to allow individuals with defined contribution funds greater choice on how to take their benefits…Read more
Automatic enrolment
Changes to legislation were made in 2008 which require every employer to automatically enrol employees into a workplace pension scheme if they meet certain criteria…Read more
The end of contracting-out
To reflect the increase in National Insurance contributions associated with the end of contracting-out, employers will have powers to amend future service benefits and/or member contribution rates within private sector occupational pension schemes…Read more
Changes to the Annual Allowance, the Lifetime Allowance and Individual Protection
One of the key advantages of saving in a pension scheme is that contributions paid are provided with tax relief. However, from a member’s perspective, limits apply on the level of contributions and benefits payable before tax charges are payable.  Read more
Changes to the Pensions Regulator’s Codes of Practice
The Pensions Regulator has issued various codes of practice to give practical guidelines on how to comply with the legal requirements of pension regulation as well as regulatory guidance…Read more
Survivor benefits for same sex couples
The introduction of the Marriages (Same Sex Couples) Act 2013, which allows same-sex couples to marry, means that pension schemes are now required to provide the survivor of a same sex marriage with the same benefits as would be payable to an opposite sex spouse…Read more
Pension liberation
Pension liberation or pension scams typically involve a company claiming it is able to release cash from a pension scheme as a loan or lump sum earlier than the law permits…Read more
Cessation of refunds from defined contribution schemes
The Pensions Act 2014 introduced a reduction in the period under which a refund of member contributions can be provided…Read more
Transfer of small pension pots
The Pensions Act 2014 sets out a legislative framework so that regulations can be introduced for consolidation of small money purchase pension pots…Read more
Change to definition of money purchase benefits
The Pensions Act 2011 made revisions to the definition of money purchase benefits and regulations/orders have been introduced during 2014 to bring the changes into effect…Read more

Defined contribution charge cap
The Pensions Act 2014 includes powers to allow the government to restrict the administration charges that can be applied to a defined contribution scheme member…Read more
Changes to Pension Protection Fund compensation for those with long service
The Pension Protection Fund is set up to provide compensation to members of eligible defined benefit pension schemes in the event that the employer suffers a qualifying insolvency event…Read more
Changes to Pension Protection Fund levy calculations
The Pension Protection Fund is making changes to its levy calculations from 2015/16 as part of its change of insolvency risk score provider from D&B to Experian…Read more
Defined Ambition and Collective Defined Contribution schemes
The Pensions Schemes Bill 2014, when finalised and enacted, will introduce shared risk schemes and collective schemes into UK legislation…Read more
Guaranteed Minimum Pension equalisation
In 2012, the Department for Work and Pensions published a consultation relating to the equalisation of benefits to reflect Guaranteed Minimum Pensions…Read more

Revisions to the IORP Directive

A draft of a revised Directive for “institutions for occupational retirement provision” (the IORP Directive) was published by the European Commission on 27 March 2014…Read more

Getting Started