UK - Tax simplification proposals on early retirement are attracting considerable interest from scheme members, delegates were told.
BP pension scheme technical adviser Louise Phipps said she had already had a large number of queries from active members planning to retire early and deferred members who left with the expectation of early receipt of their pension.
Phipps said she had been telling members it was still too early to comment but BP was considering what to do for actives – either take the “cliff edge” early retirement at 50 approach or an incline of the increase to 55.
She said: “The company will find it hard to defend giving people less flexibility than the law allows and I should imagine that the cliff edge will be the most attractive proposition. But this could give us a major problem in 2009 with a queue of 50 to 54-year-olds wanting to go to beat the deadline.”
She added: “The provision for flexible retirement is going to give us an administrative headache but is likely to be attractive to both employer and employee in certain circumstances.
“I can see this developing as a tool to aid retention at higher ages and downshifting to meet work and personal needs.”
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.