UK/US - The US Senate is set to hold a public hearing on an international treaty that will harmonise tax relief between British and American pension funds.
The document – which is being consulted on this week – is intended to allow employees transferred between the US and UK to remain in their home country pension arrangement without suffering adverse tax consequences.
But ratification of the UK/US tax treaty was expected before the end of 2002 and a number of concerns have been raised by pension funds over the delay.
Hammond Suddards Edge solicitor Frances Phillips-Taft said that once the treaty has been ratified by both parties it will come into effect in the US on the following January 1 after ratification and in the UK on April 6 following ratification.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.