Winding-up lump sum meaning

POWER CLAUSE / RULE HELD BY REQUIRES AGREEMENT OR CONSULTATION WITH SUBJECT TO Authority to amend; to wind the scheme up or delay winding-up; to cease future benefit accrual; to shut to new joiners; to readmit employees to membership of the scheme Discretion to set the employer contribution rate; to lower or suspend contributions; to apportion statutory debts Ability to enhance or vary benefits; to permit early retirement pensions and set actuarial reductions; to allow incapacity pensions, decide whether a member meets the incapacity definition, and reduce or pause such pensions; to grant pensions for serious ill-health; to apply actuarial uplifts for late retirement; to fix the rate at which pension is exchanged for a lump sum; to commute trivial pensions; to provide a bridging pension; to award discretionary increases to pensions; to make unauthorised payments Capacity to admit new employers or end their participation; to replace the principal employer; to transfer members’ benefits into or out of the scheme Authority to return...

According to the FCA's figures, 41,500 individuals accessed their pensions for lump-sum withdrawals in the last financial year, up 14.6% from 36,200 a year earlier, the watchdog said. At the same time, the FCA noted a 13.6% slide in annuity sales, falling to 59,100 over the last financial year from 68,500 the year before, according to the regulator. The regulator also reported that transfers from defined benefit to defined contribution schemes decreased, dropping to 18,073 in the financial year ending March 2023 from 26,619 in the preceding year...

Proposals to levy tax on unspent pension pots and death-related pay-outs from April 2027 are set to create a wide range of very significant and complex difficulties, the Society of Pension Professionals (SPP) has warned. The trade body said these may include sizeable and prolonged delays to paying benefits, bringing needless financial hardship for some beneficiaries. Chancellor Rachel Reeves unveiled the measures in October 2024 as part of her first Budget. It further noted that what falls within the scope of the plans remains very unclear at present and warned that the timetable is 'unrealistic and impractical'. Pension savings up to £1,073,100 have, until now, been outside inheritance tax. However, the new regime states that recipients of lump-sum pension assets worth over £325,000 from a deceased person’s estate will...

The ACA’s press release of 22 January 2025 In response to HMRC’s consultation, which has just closed, the release warned that pension schemes may face penalties for missing deadlines set under the new tax rules, as required. Until now, retirement savings of up to £1,073,100 have been outside inheritance tax altogether. However, measures outlined in the Autumn Budget 2024 mean that those who take lump‑sum pension assets exceeding £325,000 from a deceased person’s estate will incur 40% tax accordingly under these changes...

THIS PRACTICE NOTE APPLIES TO MONEY PURCHASE ARRANGEMENTS FROM 6 APRIL 2015 From 6 April 2015, new pension flexibilities expanded the retirement choices for DC members and others with ‘flexible benefits’ (in essence, money purchase and/or cash balance entitlements). As part of those reforms, drawdown became more broadly accessible. For background on the changes implemented on 6 April 2015, see Practice Note: Pension freedoms—an introduction [Archived]. This Practice Note concentrates on the legal framework for drawdown arrangements set up on and after 6 April 2015. It also addresses how pre-April 2015 drawdown is treated from that date. For the rules governing drawdown before 6 April 2015, see Practice Note: Drawdown between 6 April 2011 and 5 April 2015 [Archived]. What is drawdown? The label ‘drawdown pension’ (often called ‘flexible income’) replaced ‘unsecured pension’ and ‘alternatively secured pension’ used up to 5 April 2011. Drawdown pension describes the method of paying benefits that allows members to set their own yearly income from a pension arrangement...

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...

THIS PRACTICE NOTE RELATES TO REGISTERED PENSION SCHEMES By means of Schedule 4 to the Finance Act 2016 (FA 2016), the government brought in an allowance protection regime designed to sit alongside the cut in the lifetime allowance from £1.25m to £1m on 6 April 2016. Termed fixed protection 2016 (FP 2016), it mirrors earlier fixed protection regimes respectively launched on 6 April 2012 (fixed protection 2012, or simply ‘fixed protection’) and 6 April 2014 (fixed protection 2014). This Practice Note focuses on FP 2016, which is the subject of this Practice Note. The original purpose of FP 2016 was to give transitional protection to people who, before 6 April 2014, had already accumulated pension savings above £1m, or who expected to do so on the basis that the lifetime allowance would be maintained at no less than £1.25m. Although the lifetime allowance was removed with effect from 6 April 2024, FP 2016 still delivers limited transitional safeguards regarding an individual’s rights to (i) the lump sum allowance, (ii)...

In the Employment Tribunals Case number: [ Insert case number ] Between: [ Insert name of claimant ] (Claimant) and [ Insert name of respondent ] (Respondent) Claimant's schedule of loss 1. Details Net basic pay per week (after deductions): £[ Insert amount ] Respondent’s yearly pension contributions/annual pension entitlement: [ [ Insert amount, e.g. £x ] OR [ Insert details of pension scheme, e.g. 1/80 final salary scheme with related lump sum ] ] Yearly value of bonus/other employment perks: £[ Insert amount ] Notice period under the contract: [ Insert period, e.g. x weeks or x months ] Claimant’s date of birth: [ Insert date ] Date employment ended: [ [ Insert date ] ] Age at termination: [ [ Insert age ] ] 2. ...