“Last Man Standing” deadline for PPF levies looms
29 May 2015 is the deadline for trustees to tell the Pension Protection Fund that they have received legal advice that their multi-employer scheme is a “last man standing” scheme (see Pensions Bulletin 2014/52).
A scheme is of this type if it is not “centralised” and its rules do not include a requirement or discretion for the trustees to segregate assets on cessation of participation of an employer.
The confirmation must be in the form of an “LMS certificate” which has recently been published. Trustees of relevant schemes may also receive reminder emails from the Pensions Regulator shortly.
Comment
Now is the time to act if trustees want the PPF to take into account their scheme’s last man standing status for the 2015/16 PPF levy, especially if they have not yet received legal advice. There is no need for trustees to wait for the Pensions Regulator’s reminder email before completing the certificate.
SNP asks for a £160 a week single tier state pension
In the last election manifesto of the players expected to have a say in the formation of the next Government, the Scottish National Party supports a single-tier state pension of £160 a week when it comes into being next April. The outgoing Government’s current plans are for the single-tier pension to be set just above the guarantee credit element of the State Pension Credit, which is £151.20 per week for 2015/16.
The SNP would also vote to continue the triple lock guarantee, opposes the abolition of the Savings Credit, seeks a review of plans to increase the state pension age beyond age 66, supports the roll-out of auto-enrolment and backs in principle the new DC pension flexibilities, but calls for adequate levels of advice and support.
ACA asks parties not to trade long-term pension planning for short term enticements and pet projects
The Association of Consulting Actuaries has called for the political parties to pause before committing to further pension tax changes, noting with concern that most of the parties’ manifestos “still see pension tax relief as a political cash-cow, funding pet initiatives to target key voter groups”. In echoes of its paper published in March, it asks for a “proper review of the [pension] tax structure” arguing that a stable, long-term strategy for retirement savings is needed.
It has also produced a useful summary of the political parties’ manifestos concentrating on their pensions and tax proposals. This is contained within its latest edition of Placard.
This Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.
