Personal pension scheme meaning

Legislation safeguards the pension entitlements of members of occupational pension schemes and other employment‑related benefit arrangements, including workplace personal pension schemes that receive employer contributions, while they are away from work on statutory family leave. Statutory family leave encompasses: maternity leave paternity leave adoption leave parental leave shared parental leave parental bereavement leave carer’s leave Maternity leave Occupational pension schemes are taken to include a maternity equality rule requiring periods when a member is on maternity leave to be treated in the same manner as periods when they are not on maternity leave. This maternity equality rule applies to both paid and unpaid ordinary maternity leave (OML), as well as to paid additional maternity leave (AML). As a result, under this rule, time spent on OML and paid AML in a defined benefit (DB) scheme is recognised as pensionable service...

The employer and its advisers ought to reflect on the following matters: Preparatory steps From the employer, gather: a copy of the departing employee’s latest employment contract and any other documents setting out contractual terms (note: these might sit within a staff handbook) particulars of the employee’s contractual benefits pertinent details about the employee’s pension entitlements information on any shares/share options held by the employee; review the Articles of Association, any relevant shareholder agreement, and share scheme documentation. See also Shares and share options below Status of negotiations Will discussions occur directly between the parties, or via their respective legal advisers? How robust is the employer’s bargaining position? How credible are the employee’s existing or potential claims? For any dismissal, is there a fair reason and has a fair procedure been followed? Is the employer in repudiatory breach? What is the employer initially...

THIS CHECKLIST APPLIES TO OCCUPATIONAL PENSION SCHEMES ON AND FROM 6 APRIL 2014 For guidance on the duty to issue basic scheme information before 6 April 2014, see Practice Note: Occupational pension schemes—disclosure requirements before 6 April 2014—Basic scheme information (ARCHIVED) and Checklist: Basic scheme information before 6 April 2014—checklist [Archived]. Basic scheme information requirement Under the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the 2013 Disclosure Regulations), trustees of occupational pension schemes must supply basic scheme information to: prospective members; and members who have not already been sent that information, within one month of the scheme receiving their jobholder information or, if no jobholder information has been received, within two months of their joining the scheme...

What are the most significant changes introduced by the Act that pension scheme trustees need to prepare for? The most notable reforms in the Act that trustees should be ready for are: Data subject complaints: complaints about the handling of personal data must be acknowledged within 30 days and answered without undue delay. ICO enforcement powers: the Information Commissioner’s Office (ICO) now has authority to compel interviews and require the production of documents to assess compliance. Data subject access requests (DSARs): the Act codifies the ICO’s existing guidance, meaning (i) trustees must apply a ‘reasonable and proportionate’ search standard when responding; and (ii) the ‘stop the clock’ rule pauses the one-month deadline for a response. Automated decision making (ADM): the Act allows reliance on the full set of lawful bases — including ‘legitimate interests’ — when non-special category personal data is used for significant automated decisions about an individual, provided suitable safeguards are in place. ...

Original news Mr T (CAS-64304-R5R1)—14 April 2025 Summary The Pensions Ombudsman dismissed a complaint concerning the distribution of death benefits from a pension scheme. It concluded the scheme administrator’s decision was reasonable, neither irrational nor perverse. The complainant was not named in a supposed will—which was invalid as it lacked witnesses—and was the sole beneficiary of the late member’s estate. Before deciding, the administrator carried out extensive enquiries. This outcome serves as a reminder that trustees and administrators of pension schemes should undertake appropriate enquiries when determining death benefit payments. What were the facts? Mr S was a member of the AJ Bell You Invest Self invested Personal Pension Plan (the Scheme). Following his death, he was survived by, among others, Mr T. Mr T had entered into a civil partnership with Mr S...

Original news Mr Y (CAS-57893-P0C6)—20 August 2025 / Ms R (CAS-58612-P1X1)—18 July 2025 Summary The Pensions Ombudsman dismissed a complaint concerning a loan note investment. The scheme’s independent trustee bore no responsibility for losses arising from this high-risk, speculative asset. The complainants had completed forms confirming the trustee was not giving investment advice and could not be held accountable for any investment loss. The arrangement ran on an execution-only basis. The trustee also undertook appropriate due diligence before proceeding. In light of these factors, no liability ultimately attached to the trustee for the loan note loss. The determination highlights the perils of placing funds into non-standard investments. Accordingly, the complaint failed. What were the facts? Ms R and Mr Y were members of the Westerby Pension Scheme (the Scheme). The Scheme was a self-directed, self-invested personal pension (SIPP) scheme. Westerby Trustee Services Limited (Westerby) was the Scheme’s independent trustee and administrator...

This Practice Note sets out the principal steps for properly bringing to an end a defined contribution (DC) occupational pension scheme—also described as a money purchase occupational pension arrangement or a trust-based defined contribution plan. Throughout this Practice Note, this type of arrangement is termed a ‘DC scheme’. The guidance applies across a range of DC schemes, including trusts that sit outside the authorised master trust framework and small self-administered pension schemes (SSASs), although the latter may, in certain cases, be excluded from particular statutory obligations or requirements. This Practice Note does not cover the winding-up of any: an ‘authorised master trust’ under the Pension Schemes Act 2017 (PSA 2017)—for further detailed information, please see Practice Note: The authorisation and supervisory regime for master trusts, contract-based DC arrangements (eg group personal pension arrangements)—for further details and guidance, see Practice Note: Winding up of personal pension schemes Statute makes distinct and specific provision for hybrid schemes (combining defined benefit (DB) and DC...

STOP PRESS On 11 May 2026, HMRC issued a new technical note, inheritance tax on pensions. It explains the inheritance tax (IHT) changes made by the Finance Act 2026 for deaths on or after 6 April 2027. The note outlines how notional pension property will be pinpointed, assessed and apportioned to beneficiaries, who must report and settle any IHT due, how withholding notices and the pensions direct payment scheme will work, and how the reforms dovetail with existing income tax rules on pension death benefits. The government is expected to bring forward supporting secondary legislation on information-sharing duties later this year. HMRC will provide guidance, supplementary materials and interactive tools for personal representatives by April 2027. This Practice Note is being revised to incorporate the technical note. For more detail, see LNB News 11/05/20026 40. This Practice Note explains how IHT rules apply to the build-up and payment of benefits from HMRC-registered occupational and personal pension schemes. Importantly, reforms are in train to draw unused pension funds and death...

Personal pensions, brought in during 1987, were hailed as creating fresh options for both employees and the self-employed. It soon became clear the proposition could equally be promoted to employers, and the group personal pension (GPP) swiftly emerged to meet that demand. In essence, a GPP is a collection of individual personal pension policies housed within a single personal pension scheme and run by the provider for the workforce of one employer, or a group of employers. GPPs are therefore ‘workplace personal pension schemes’. Consequently, rules apply to GPPs that do not apply to personal pensions used outside the workplace. For example, they are overseen by independent governance committees (IGCs) (see —principal legal features below) and limits apply to charges borne by members. For more detail on workplace requirements for GPPs, see Practice Note: Personal pensions—an introduction—Features specific to workplace personal pension schemes. Where the individual arrangements inside a GPP are self-invested personal pensions (SIPPs), the GPP may be presented as a group SIPP arrangement... principal legal features...

This Agreement is made on [ insert date ] Parties [ Insert Employer’s name ], whose registered office is at [ insert Employer’s address ], company registration number [ insert Employer’s company number ] (Employer); [ Insert Employee’s name ] of [ insert Employee’s address ] (you). The parties agree: Termination of employment 1.1 Your employment with the Employer [ will terminate OR terminated ] owing to [ insert reason for termination ] on [ insert date ] (Termination Date). 1.2 For the period up to and including the Termination Date, you [ will be OR have been ] paid your accrued basic salary (less deductions for income tax and primary class 1 (employee) National Insurance contributions ( PAYE Deductions )) and [ will have OR have ] received your contractual benefits [ , including a payment of £[ insert amount ] in respect of [ insert number ] days’ accrued but untaken holiday entitlement ] [...

These notes and specimen documents make up an automatic enrolment (AE) pack created to assist employers—including small and micro-employers—in meeting the duty to enrol employees into an AE scheme... (A) Notes about AE (i) the statutory obligation (ii) financial thresholds and limits (iii) the statutory and other key terms (B) Documents (i) letters (ii) notices (iii) the employment contract—sample pension clauses AE scheme providers generally issue the core letters and notices, though not always everything required in every relevant situation, and typically none where an employer fulfils the AE duty by using a qualifying pension scheme that is not an automatic enrolment pension scheme... (A) Notes about AE 1 The statutory obligation The primary legal provisions are found in Part 1 of the Pensions Act 2008 (PenA 2008) and the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010, SI 2010/772, as later...

This precedent is prepared on the footing that the drafter acts for the Seller. It is prepared on the basis that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions specialist is engaged at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 12 (inclusive), the following definitions set out below shall apply: Employee means any current or former employee, officer, or director of the Company [ or of any Group Company ] [ and any other individual involved in the management of the Company’s affairs ] ; Pension Scheme means any arrangement or practice providing for, or contributing towards, an annuity, pension, lump sum, gratuity, or similar benefit on retirement, long-term ill-health, or death, or pursuant to a pension sharing order, arising from the service or historic service of an Employee or any other person, or for the benefit of that individual’s dependants; and Pension Schemes shall be construed accordingly......