UK - Government legislation will take away small self-administered schemes' flexibility, a leading pension provider claims.
Clerical Medical says schedule 28 of the Finance Bill will protect benefits for members of small final salary schemes. But it will have a negative effect on SASSs.
The clause states that “in the case of a pension scheme with fewer than 50 members a pension is payable by an insurance company selected by the scheme administrator”.
Clerical Medical manager of industry affairs Stewart Mason said this effectively took away the flexibility which currently allowed SASSs to pay member pensions from scheme assets.
The Inland Revenue was unavailable for comment.
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