Pensions news: page 4
- October 2023
Rollback of remediable service to the legacy scheme takes effect
From 1 October 2023 pensionable service built up between 1 April 2015 and 31 March 2022 is treated as always having been in the legacy scheme, under the public service pensions remedy.
New tiered contribution rates proposed from 1 October 2023
The Scottish Public Pensions Agency has consulted on draft regulations that would replace the NHS Scotland pension scheme's single contribution table with two new tables from 1 October 2023.
- September 2023
Over half a million more pensioners could pay income tax after 8.5% state pension rise, experts warn
LCP estimates around 650,000 more people aged 65 and over would become income taxpayers if the state pension rises 8.5% in April 2024 while the personal allowance stays frozen at £12,570.
Automatic enrolment extension reforms receive Royal Assent
A Private Members Bill extending automatic enrolment to workers under 22 and removing the Lower Earnings Limit has received Royal Assent, the Pensions and Lifetime Savings Association has confirmed.
- August 2023
Cabinet Office confirms McCloud remedy regulations will proceed
The Cabinet Office has confirmed it will proceed with regulations implementing the second phase of the McCloud remedy for the Civil Service Pension Scheme, with the rules expected to take effect from 1 October 2023.
- July 2023
Tax information and impact note published on abolishing the pensions lifetime allowance
HMRC has published a tax information and impact note on abolishing the pensions lifetime allowance from April 2024, limiting tax-free cash to £268,275 and lump sums before marginal rate taxation to £1,073,100.
Government, FCA and TPR publish Value for Money consultation response
The government, the Financial Conduct Authority and the Pensions Regulator have published their response to a consultation on disclosing, assessing and comparing the value for money of workplace pension schemes.
- June 2023
Amending regulations replace staged connection timetable with single deadline of 31 October 2026
The Pensions Minister laid amending regulations in June 2023 replacing 23 staged connection deadlines for pensions dashboards with a single mandatory deadline of 31 October 2026.
State pension top-up deadline extended to April 2025
HMRC has confirmed that people will have until April 2025 to pay voluntary National Insurance contributions for historic gaps, extending a deadline that had already been moved once.
- May 2023
Consultation on proposed changes to member contributions opens
The Scottish Public Pensions Agency has opened a twelve-week consultation on proposed changes to member contribution rates in the NHS Pension Scheme (Scotland), running from 23 May to 15 August 2023.
DWP reveals £670m of state pension underpaid in 2022-23
The Department for Work and Pensions underpaid £670m of state pension in 2022-23, the highest underpayment rate on record, with official error the main cause.
Hargreaves Lansdown survey finds one in seven workers have stopped pension contributions
A May 2023 survey of 2,000 people for Hargreaves Lansdown found one in seven had stopped pension contributions and 8% had cut them back, with younger workers most likely to have done so.
Saltus survey finds one in five would cut pension contributions to cover mortgage costs
A May 2023 survey of 2,004 people by financial planning firm Saltus found one in five said they would have to cut pension contributions to cover rising mortgage costs.
- April 2023
Lifetime Allowance charge abolished and pension tax limits increased
From 6 April 2023 the lifetime allowance charge is removed and the pension commencement lump sum is capped at 25% of the current lifetime allowance, while four pension tax limits rise.
Full new State Pension rose to £203.85 a week
The full new State Pension rose to £203.85 a week from April 2023, with the annual figure reported as £10,636.60, as the triple lock uprating took effect.
Large pension schemes to connect to dashboards digital architecture from April 2023
The Government's draft Pensions Dashboards Regulations propose that the largest occupational pension schemes connect to the dashboards digital architecture between April 2023 and September 2024.
- March 2023
Government announces delay to State Pension Age increase
The government has delayed the increase in State Pension Age, prompting the International Longevity Centre to warn that the decision leaves future governments facing difficult choices on tax or spending.
Budget announces childcare expansion, pension tax changes and higher benefits conditionality
The March 2023 Budget expanded free childcare, abolished the lifetime limit on tax-free pension savings and raised benefits conditionality, requiring 800,000 more people to work.
Government freezes pension commencement lump sum limit at £268,275 and removes Lifetime Allowance charge
The Government has removed the Lifetime Allowance tax charge and frozen the pension commencement lump sum limit at £268,275 across all pension arrangements, effective from 6 April 2023.
FPC recommends minimum resilience levels for LDI funds
The Bank of England's Financial Policy Committee has recommended that The Pensions Regulator set minimum resilience levels for the LDI funds and mandates that pension scheme trustees can invest in.
Government shelves plans to bring state pension age to 68 sooner than planned
The government has shelved plans to bring the state pension age to 68 sooner than planned, confirming the rise to 67 will go ahead between 2026 and 2028.
Pensions Minister announces reset of the Pensions Dashboards Programme
The Pensions Minister announced in March 2023 that the Pensions Dashboards Programme would be reset, allowing more time to build the digital architecture and connect pension providers and schemes.
Spring Budget 2023 pension tax changes incorporated into relief forecasts
HMRC's December 2024 tax relief statistics confirm that official forecasts for pension tax relief now include the abolition of the Lifetime allowance and the Annual allowance increase announced at Spring Budget 2023.
Top-up deadline moved to 31 July 2023
HMRC has given people until 31 July 2023 to top up National Insurance credits, extending a deadline that had been due to fall on 5 April.
- February 2023
DWP launches consultation on small pension pots
The Department for Work and Pensions has opened a call for evidence on deferred small pension pots, running to 27 March 2023, setting out two possible approaches to consolidation.
- January 2023
Value for Money consultation on pension scheme metrics, standards and disclosures opens
The Department for Work and Pensions, the Financial Conduct Authority and The Pensions Regulator opened a consultation on 30 January 2023 on disclosing, assessing and comparing the value for money of workplace pension schemes.
- December 2022
Pensions Dashboards Regulations 2022 come into force
The Pensions Dashboards Regulations 2022 came into force on 12 December 2022, setting the rules for pension schemes to connect to the dashboards ecosystem and for services that show savers their pensions in one place.
- November 2022
Retirement Living Standards 2022 update published, showing the largest annual increases since the RLS began
The Retirement Living Standards for 2022 show the largest annual increases since the measures began in 2019, with all three budgets rising by more than the 9% rate of CPI in the year to April 2022.
- October 2022
Government response to pensions dashboards further consultation published
The government has published its response to the second consultation on the draft Pensions Dashboards Regulations 2022, covering the Dashboards Available Point and data-sharing between MaPS and TPR.
Five steps to better pensions: time for a new consensus published
Research published on 12 October 2022 finds more than half of UK savers will miss the retirement income targets set by the 2005 Pensions Commission unless the pensions system is reformed.