Archive for the ‘Pensions’ Category
Pensions in 2012–A Summary
Well 2012 has got off to a great start here at 44 Financial. We’re working with a number of individual clients on their retirement options as well as three different new corporate tenders. What a fantastic start to the Olympic year!
Conscious as ever that there is so much going on in the pensions world we always try to look out for great articles and documents that will help our clients and blog subscribers to keep up to date. Sometimes its just enough to know what’s going on at a general level so you can decide how much you need to delve into the detail.
To that end we are grateful to those legal types at SNR Denton for their Pensions 2012 article. You can click through to the article here.
As a list to know what you should be keeping an eye on it’s great. There’s brief sections on Auto-enrolment, the abolition of contracting out, gender pricing of annuities.
We hope that you find this useful. As ever if you would like to look at the implications of any of this for your own arrangements please contact us. You can click here to complete our enquiry form.
We’d love to hear from you.
Steve Clark
Back to School–Your Pensions Homework
It’s very difficult to keep up to speed with all of the issues that will arise on planet pensions in 2012.
To help your revision Eversheds have produced a really helpful Speedbrief that covers all of the main issues that lie ahead for us in 2012. You can click through to it here.
There’s no exam at the end of this homework. However, we hope you’ll find this summary useful.
Steve Clark
U-Turn on Planet Pensions
What a week its already been on planet pensions And it’s still only Tuesday!
Yesterday in our blog post on the new pension rules we first got some idea that the government was going to delay the introduction for some employers. 
By the afternoon the Pensions Minister Steve Webb had confirmed the rumours. Smaller employers are, after all, going to be given a bit of breathing space.
Now this is the same Steve Webb that told a conference almost a month ago to the day that there was no intention of postponing the introduction of the changes. It probably goes to show how little we can read into what politicians say!
So where does this leave us. It all depends on size and whether you are a small or large employer. Size is subjective and we all know that one man’s large is another woman’s small.
As it stands here is what we know from the announcement from the Department for Work & Pensions.
If you employ less than 50 employees
You’ll also get some breathing space. We know that you’ll be given until after May 2015
to comply. This is after the end of this Parliament. We’ll have to wait and see what happens at the next election. However, the government has stated that all firms will have to comply at some point.
If you employ between 50 and 2,999 employees
You’ll get some breathing space. Your staging date will change but we don’t know by how much yet. The DWP will issue more guidance in January 2012.
If you employ more than 3,000 employees
You are unaffected by yesterday’s U-Turn. Your staging date is still the same. The very largest employers have to start complying from October 2012.
What does it all mean for me?
Our research indicates that the majority of companies with less than 50 employees don’t even know yet about these new pension rules.
There’s evidence that more employers in the 50 to 3,000 know about the changes but only a small proportion have started any serious planning.
Clearly, if you are one of these employers you’ll benefit from the delay. What you shouldn’t do is simply stick your head in the sand hoping the whole thing will go away. It won’t.
The delay will allow you to start looking at the cost of compliance and what impact it’ll have on your business income. You’ll also have a chance to look at what you already have in place. It’ll give you time to work out what you have to do.
All is not lost!
Don’t worry if you haven’t had a look at the new rules and how it’ll affect you.
We’re talking to a growing number of employers who are taking this opportunity to look at whether they are employing the right adviser to see them through this minefield.
If you’d like to arrange an initial meeting to find out more about our active benefits service please email us here.
Govt U-Turn on new pension rules?
There has been some murmuring recently about whether the government will change it’s mind and cut small business some slack in relation to the new pension rules coming next year.
Very recently the Pensions Minister Steve Webb rebutted this idea when he spoke in the Commons. However, on Friday an article appeared on the Daily Telegraph web site that seems to say the opposite. You can click through to the article here.
I’m not sure that this is as definitive as it sounds and we’ll probably have to wait and see if George Osborne says anything tomorrow.
It doesn’t really make sense only to exempt smaller employers as that will create a very uneven playing field if larger employers still have to comply. After all why take a job with a big employer where you have to pay 4% of your pay into a pension when you can work for a smaller employer and avoid it.
It’s all a bit of a mish-mash. Let’s hope we get some clarity soon as there are some employers who are still sticking their heads in the sand and pinning their hopes on some form of delay.
Watch this space!
Steve Clark
Final Salary Pension Schemes–Some good news?
The Pension Protection Fund is due to bring in a new levy system next year . It’s expected to result in a £50m reduction in levy bills over the next year.
The new system is intended to provide greater stability but will also place a greater emphasis on the funding level and investment risk of the pension scheme.
One of the unfortunate down sides of the new system is that pension schemes with very strong employers which are not especially well funded could see an increase in their levy.
Steve Clark