Legislation

A large part of the industry has slammed the government's announcement preventing private sector schemes the power to override scheme rules enabling a shift from RPI to CPI indexation.

The government has calculated the move from RPI to CPI indexation for occupational schemes could reduce the value of pension rights by as much as £76.6bn over 15 years.

Steve Webb has said the government will not give private sector schemes the power to override scheme rules to shift from RPI to CPI indexation.

The government is expected to announce draft pensions tax legislation tomorrow as part of the 2011 Finance Bill.

UK - There is a "real danger" the auto-enrolment regime could be so broad it becomes an unenforceable law, Alan Pickering warns.

Individuals whose pension input period is tipped over from 5 April to 6 April next year could be caught unnecessarily by the reduction in annual allowance, a lawyer warns.

Individuals who exceed the annual allowance may be allowed to meet the tax charges from their pension benefits, a Treasury consultation paper says.

US - The US government is considering introducing new rules to ensure workers have a better understanding of target date retirement funds.

More than 10 million people will see their state second pension hit by the Consumer Price Index switch by the end of this parliament, the government says.

Transfers from contracted out defined benefit schemes to non-contracted out schemes will be permitted after contracting-out on a defined contribution basis is abolished.