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.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.
This week's top stories included coverage of the much-anticipated defined benefit (DB) white paper and the sector's reaction.