UK - The National Association of Pension Funds (NAPF) has published a guide to reforms in the tax regime for pensions.
This year’s Finance Act put in place the “most radical overhaul of the tax treatment of UK pensions for eighty years”, the NAPF said in a release.
“The changes, to take place in April, 2006, effectively replace the entire current tax regime for pensions with a completely new set of rules,” the statement said.
Under the new system, the eight different existing tax regimes will be replaced by a single regime for all tax-relieved pensions savings, and schemes will have to abide by statutory rules, rather than discretionary practice.
NAPF chief Christine Farnish (pictured) commented: “The new guide is intended to be a practical aid rather than a detailed technical document. I hope it will prove essential reading for finance, HR and pensions professionals who need to start preparing for the changes.”
NAPF said the guide, aimed at employers, trustees, scheme managers, HR managers and others involved in pension provision, sets out clearly what they need to know and do and when the changes must be made.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.