Qualifying recognised overseas pension scheme meaning

No legal duty on pension trustees to carry out due diligence beyond compliance with statutory transfer regime, and member did not need to be an ‘earner’ to acquire ‘transfer credits’ as assumed in Hughes (Mrs T, CAS-78486-R9D8 & Mr R, CAS-74246-K7Q0) Original news Mrs T (CAS-78486-R9D8)—30 September 2025 / Mr R (CAS-74246-K7Q0)—11 September 2025 Summary The Deputy Pensions Ombudsman has dismissed two complaints concerning a transfer into a pension liberation arrangement. Regulatory guidance imposed no extra obligation beyond following the statutory transfer framework, and compliance with that regime was sufficient. Each complainant was entitled to a cash equivalent. The statutory reference to ‘transfer credits’ concerns the character of the benefits transferred, not the member’s current earnings or earner status. Taken together, these determinations underline how challenging it is to fix trustees with liability for statutory transfers. What were the facts? Mr R was a deferred member of the Merlin Pension Scheme (the Merlin Scheme), while Mrs T belonged to the HBOS Final Salary Pension Scheme...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Automatic enrolment Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2017 Under section 13 of the Pensions Act 2008 (PenA 2008), an individual’s qualifying earnings are those exceeding the amount in subsection (1)(a) and not surpassing the amount in subsection (1)(b). The earnings trigger for automatic enrolment and re-enrolment is the pay level at which employers must automatically place eligible jobholders into a qualifying workplace pension scheme. For money purchase arrangements, the qualifying earnings band identifies the slice of pay on which employers and workers must make at least the minimum contributions. Each tax year, the Secretary of State must review: the automatic enrolment earnings trigger the automatic re-enrolment earnings trigger the qualifying earnings band If the Secretary of State considers that any figures should be altered, they are amended by statutory instrument. Provisions under PenA 2008, sections 14 and 15A, permit, among other matters, increases to the amounts set out in section 13(1)(a) and (b)...

A-day 'A-day' is the widely used term for the broad pension tax 'simplification' reforms that began on 6 April 2006. The changes covered: how much pension contribution was allowed, the kinds of schemes an individual could invest in, the sums that could be taken (and when), and the choices available for any remaining fund. A-day also introduced the annual allowance and the (now abolished) lifetime allowance. See: Annual allowance and Lifetime allowance. AFPS AFPS: Armed forces pension scheme; see Practice Note: Public sector pensions and family proceedings. Accrual rate The speed at which pension benefits build as pensionable service is completed in a final salary scheme, eg 1/60 for each year of pensionable service. Accrued benefits The benefits earned in respect of service up to a specified date. Added years Extra pension provided by adding further years of pensionable service in a salary-related scheme. Such additional years are secured via transfer payments or through additional voluntary contributions/augmentation...