Since 2005, an insolvency event may cause a scheme to be assessed for and ultimately enter the Pension Protection Fund. Prior to that date, it may have become eligible for assistance under the Financial Assistance Scheme. Insolvency may cause a full or partial wind-up of the scheme. An insolvency event applies to a wider range […]
The Finance Act 2004, sought to simplify the taxation of pensions and provide increased choice and flexibility. On 6th April 2006, the existing taxation regimes, eight in total, were replaced by a single set of rules applicable to all registered schemes, including defined benefit and contribution schemes, personal pension schemes, and occupational pension schemes. The […]
Pension regulation. Until the 1990s, the degree of pension regulation was relatively light. There were very few restrictions on who could be a trustee. The Pension’s Act 1995 placed restrictions on who could or could not be a pension trustee and provided rights to members to nominate at least one-third of trustees.As of 2004, trustees […]
The Pension Protection Fund seeks to protect members of private sector defined benefit schemes that have become insolvent within sufficient funds. It applies to UK-based defined benefit schemes that would become insolvent or are not sufficiently funded. The fund may provide benefits in accordance with the pension compensation provisions. It provides 100 percent compensation for […]
The pension scheme trustee is to apply the scheme assets in accordance with the relevant trust and legislation for the benefit of scheme members and other beneficiaries. In addition to common law duties of care and equitable obligations, there are civil penalties of up to €5,000 for individuals and €50,000 for companies, as well as […]
Most private sector pensions are funded. Assets need to be accumulated in advance to meet the ultimate liability to pay pensions. Some public sector schemes are unfunded, and they are paid for by taxation on an ongoing basis. Prior to the pensions legislation in the mid-1990s, there were very few funding obligations. The contractual and […]
Pension contracting out was a feature of UK Pensions Legislation from 1978 to 2012. After 2012, it is only permissible in relation to a defined pension plan benefit basis. Persons who contracted out their salary-related scheme will become entitled to a guaranteed minimum pension for service between 1978 and 1997 and to the OSR rights […]
Historically, employees had no entitlement to membership of a pension scheme or to any particular pension benefit. The employer might, in its discretion, provide a pension scheme but retain substantial discretion as to the level or types of benefits to be provided. Employment contracts could promise the benefit of a pension but are generally in […]
In the context of the transfer of undertaking under collective redundancy legislation or large-scale redundancy, certain consultations are required by general employment legislation. The consultation regulations require employers to consult with members in prescriptive terms regarding most major changes to the scheme; the employer must give specified written notice to all affected members and representatives […]
The UK Pensions and Divorce Act 1995. Family law courts have no jurisdiction over pension schemes. Although pension rights were taken into account, then courts had direct jurisdiction to make orders against pension scheme trustees and members. The 1995 legislation allowed for orders to be made to split pension rights on divorce. Under the 1995 […]