Deferred pension meaning

When does a section 75 debt arise? An s 75 liability crystallises in respect of an occupational pension scheme that is underfunded on a buy-out basis and: an employment-cessation event happens for a relevant participating employer within a multi-employer scheme an insolvency event occurs in relation to a participating employer of the scheme, or the scheme formally goes into winding up In a multi-employer scheme, an employer’s s 75 debt is its allocated share of the scheme deficit, appropriately assessed on a buy-out basis. As an alternative to immediately paying the s 75 debt in full, an employer may enter into a deferred debt arrangement, an apportionment arrangement, or a withdrawal arrangement. Section 75 does not apply at all to money purchase schemes, unregistered pension schemes, unfunded public sector schemes, and a scheme with only one member. ...

This Checklist offers an overview of the information an annual benefit statement must contain under regs 16, 16A and 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the Disclosure Regs 2013). It applies irrespective of whether the pension arrangement in question is a defined benefit scheme, a cash balance arrangement or any other money purchase set‑up. Benefit statements for benefits other than money purchase benefits Active, deferred and pension credit members who are entitled to benefits other than money purchase benefits (for example, final salary or career average benefits) may ask the trustees or managers of the scheme for a benefit statement once in every 12‑month period. The trustees must provide the statement as soon as practicable and, in any event, within two months of their request. The precise content of the annual benefit statement varies according to the member’s status, and the accompanying table identifies the information requirements for benefit statements for each relevant type of member...

Original news Mr R (CAS-63400-N0T9) – 21 October 2024. Summary The Deputy Pensions Ombudsman dismissed a grievance concerning a transfer into a pension liberation arrangement. It was considered inappropriate to assess the decision through the lens of hindsight. The 2013 ‘Scorpion’ guidance post-dated the transfer by two years and therefore did not apply anyway. The Scheme undertook suitable, robust and proportionate due diligence consistent with industry practice at the time. This outcome confirms the Pensions Ombudsman does not make retrospective judgements in such circumstances. What were the facts? Mr R held deferred status as a member in the Armed Forces Pension Scheme (the ‘Scheme’)...

Original news Mrs H (CAS-65551-M8D0)—22 August 2024 Summary The Pensions Ombudsman has dismissed a complaint regarding a discretionary pension established by statute. The scheme’s provisions were outdated and offered no benefit to deferred members. To be entitled to a pension, an individual had to leave the Salvation Army’s service and make a claim—something the complainant had not done. The preservation legislation did not apply because no employer-provided resources existed (Salvation Army workers are viewed not as employees but as officers of religion). The Ombudsman’s decision serves as a reminder that the rules of a pension scheme determine a person’s eligibility for benefits. What were the facts? Mrs H was a commissioned officer for the Salvation Army (SA)...

In this issue Budget and Finance Bills Individuals and income tax Anti-avoidance Taxes management and litigation Employment taxes Key developments Environmental taxes Daily and weekly news alerts Dates for your diary New and updated content Trackers Useful information Budget and Finance Bills Scottish Parliament approves the Scottish Budget The Scottish Parliament has passed the 2024–25 Scottish Budget Bill, confirming changes to Scottish income tax, with fresh 45% and 48% rates for higher earners. See: LNB News 28/02/2024 20. Spring Budget As flagged in Tax weekly highlights—22 February 2024, the Chancellor, Jeremy Hunt, will present the Spring Budget on Wednesday, 6 March 2024. As usual, we will produce overnight analysis of the tax measures, ready on the morning of Thursday, 7 March. Our recent fiscal event coverage is available under the subtopic: 2023–24—Fiscal events including Budget. Individuals and income tax New Regulations reform Making Tax Digital for Income...

This practice note applies to defined benefit occupational pension schemes The importance of identifying a scheme’s statutory employer(s) A fundamental element of the law governing occupational pension schemes, particularly defined benefit (DB) schemes, is that the main burden of supporting the scheme lies with its sponsoring employers, as a matter of law alone indeed. An employer might have exited the scheme previously without settling all liabilities owed to it; in such circumstances they may still be a ‘statutory employer’ even though they no longer participate. They may therefore continue to bear obligations in relation to the scheme. Under the registered pension scheme regime, various specific obligations fall upon those who qualify as ‘statutory employers’, a notion carried over from the earlier tax-exempt approval regime in force before A-day (for further information on the pre A-day regime, see The pre A-day pensions tax regime [Archived]). These duties will typically extend beyond those that a participating employer assumes under the scheme’s trust deed and rules. For...

ESPS (ESPS) is a trust-based arrangement created by an Electricity Council resolution on 20 January 1983 as an industry-wide pension for employees of the nationalised electricity sector. It remained a single scheme at privatisation on 31 March 1990, after which it was divided into separate sections or ‘Groups’. The rules are not publicly accessible. For further information on statutory protections for ESPS members following privatisation, see Practice Note: —Protected Persons. Each principal electricity company participating in the ESPS forms its own Group; there are currently 23 Groups. Some Groups have a single participating employer, while others have several. Each Group is actuarially independent, with its assets and liabilities assessed on a standalone basis... Although a common scheme-wide benefit structure applied at the point of privatisation, since then each Group has been able to offer different benefits to its members. The ESPS rules comprise a central set of clauses and provisions governing matters that apply across the scheme, with Group-specific rules appended as Schedules. This Practice Note outlines the...

Statutory framework At present, four principal pension schemes operate in England and Wales for members of the armed forces. These are: Armed Forces Pension Scheme 1975 (AFPS 1975) — formerly open only to the regular forces; closed to new members from 6 April 2006 and stopped future accrual from 1 April 2022 Armed Forces Pension Scheme 2005 (AFPS 2005) — likewise for the regular forces only; also closed to future accrual from 1 April 2022 Reserve Forces Pension Scheme 2005 (RFPS 2005) — open to full time reservists; again closed to future accrual from 1 April 2022 Armed Forces Pension Scheme 2015 (AFPS 2015) — open to the regular forces and all reservists; effective from 1 April 2015 There are also several other schemes, run by the same manager, that provide pension or other occupational benefits to armed forces personnel. This Practice Note focuses on AFPS 2015. The AFPS 2015 was established under section...

1 Background 1.1 This policy covers the [ trustees (‘the Trustees’) OR directors of [ insert company name ] (‘the Trustees’), acting in its role as corporate trustee ] of the [ insert name of pension scheme ] (‘the Scheme’). 1.2 Each Trustee has an obligation to act even‑handedly and to advance the aims of the Scheme, while considering the interests of the Scheme’s beneficiaries as a whole. Beneficiaries comprise [ active members, ] pensioners, deferred members, and those asserting rights through them, such as dependants. 1.3 The Trustees may, where appropriate, consider the interests of [ insert name of sponsoring employer ] (the ‘Employer’) as sponsor of the Scheme, so long as this does not cut across their fiduciary obligations to beneficiaries. Legal advice should be obtained if it is necessary to determine whether a distinct fiduciary duty is also owed to the Employer. 1.4 The Trustees acknowledge that, at times, their personal interests or other responsibilities may conflict with—or could reasonably be...

To: the [ active AND/OR deferred AND/OR pensioner ] members [ (the “Members”) ] of the [ insert name of pension scheme ] [ (the “Scheme”) ] From: The trustees of the Scheme Date: [ Insert date sent to members ] The Pensions Act 2004 (the “2004 Act”) and the Pensions Regulator’s General Code of Practice (the “General Code of Practice”) require occupational pension schemes to have arrangements ensuring that at least one third of trustees are nominated by members, unless the Scheme is exempt under legislation. Background Consistent with the 2004 Act and the General Code of Practice, the trustee [ s ] of the Scheme (the “Trustees”) invite nominations from those eligible to nominate for [ insert number of member-nominated trustees sought ] new member-nominated trustee roles. The current position The Scheme is currently constituted by [ insert total number of trustees ] trustees, comprising [ insert number of MNTs ] trustees nominated by the Members (the...

To: the [ Active AND/OR Deferred AND/OR Pensioner ] Members (“[ the Members ]”) of the [ insert name pension scheme ] [ “the Scheme” ] From: The Scheme’s Trustees Date: [ Insert date sent to members ] Background In accordance with the Pensions Act 2004 (PeA 2004) and the Pension Regulator’s General Code of Practice (“the General Code of Practice”), occupational pension schemes must have arrangements ensuring that at least one third of trustees are nominated by members, unless the Scheme is exempt under legislation. The General Code of Practice states that the MNT arrangement should include a mechanism for periodic review to confirm whether it remains suitable for the Scheme, with such reviews to occur every three to five years. The General Code of Practice also indicates that the arrangement should be reassessed whenever there is a material change to the Scheme’s circumstances and/or its membership...