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...

A pension transfer A pension transfer takes place when an individual’s rights under one pension scheme are moved to another. The ceding scheme passes the relevant assets to the receiving scheme, which then assumes responsibility for providing the benefits for the person concerned. Members of all UK registered pension schemes that are personal pension schemes have an overriding statutory entitlement to transfer the cash equivalent of their benefits to another pension arrangement, subject to meeting certain prescribed conditions. Many personal pension schemes also allow transfers out in wider situations than those giving rise to the statutory right, for example: partial transfers transfers of benefits that are in drawdown transfers of particular assets in non-cash form In practice, it is crucial that transfers paid from personal pension schemes constitute a recognised transfer for HMRC purposes and do not inadvertently forfeit any tax-related protections or statuses the member may hold. Personal pension schemes can also receive transfers from other pension...

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)...