It’s a while since we last commented on VAT on pensions but we return with some good news which HMRC have quietly slipped out in updated content to the VAT Manual. Back in 2014, following the PPG case, HMRC proposed withdrawing their practice of allowing employers to recover VAT on charges on administration costs for … Continue Reading
For the last few weeks, U.S. tax reform deliberations put 401(k) retirement plans on a roller coaster ride. Rumors abounded, including, for example, whether legislators would impose new contribution caps, or eliminate pre-tax contributions altogether. Legislators often have targeted the tax-advantaged status of retirement savings plans as a revenue raiser to pay for federal programs … Continue Reading
With U.S. tax reform on the horizon, there are some reports that lawmakers are considering limiting annual pretax contribution limits to 401(k) plans to $2,400. The current tax code allows most workers to contribute up to $18,000 on a pretax basis to 401(k) plans. At this time, it is uncertain whether there will be any … Continue Reading
In May we took the plunge and blogged about the forthcoming money laundering regulations (which seemed to have gone largely unnoticed until that point). We highlighted some difficulties with the legislation and that it wasn’t entirely clear how they would apply to occupational pension plans. Well, the final form regulations have arrived. They came into force … Continue Reading
The UK Financial Conduct Authority (FCA) published its final Report on its asset management market study yesterday. Key findings include: Asset management – the report finds evidence of weak price competition and recommends a number of remedial strategies, including improved transparency and an extension of the senior managers’ regime. However, the FCA has rejected the idea of … Continue Reading
The UK High Court has approved an application for judicial review brought by the Palestine Solidarity Campaign Limited against the Secretary of State for Communities and Local Government in a case which contains some fascinating principles of constitutional law.… Continue Reading
It may be show time for the U.S. Department of Labor’s (DOL’s) Fiduciary Rule (the “Rule”), but don’t expect an elaborate production. Think frustrated, reluctant actors on a bare stage with no lights or scenery implementing the previous Administration’s regulatory approach to protecting retirees and retirement savings from conflicted investment advice. After a long and … Continue Reading
The U.S. Supreme Court has ruled in three cases that pension plans established by church affiliated organizations are “church plans” that are exempt from ERISA (the Employee Retirement Income Security Act of 1974). The cases are Advocate Health Care Network v. Stapleton, U.S., 6/5/17; Saint Peter’s Healthcare Sys. v. Kaplan, U.S., No. 16-86, 6/5/17; and … Continue Reading
So now we know, BA is not going to let things rest following its defeat in one of the biggest, most high profile and lengthy pensions cases in recent years. It is has been reported that it has sought and been granted leave to appeal. This was yet another case involving questions about indexation of … Continue Reading
Age discrimination is a notoriously difficult area to address in the context of pension plans (which, by their very nature, provide benefits by reference to the age of an individual). Two recent UK employment tribunal decisions have put age discrimination into the spotlight – with very different outcomes.… Continue Reading
The General Data Protection Regulation (GDPR) comes into force on 25 May 2018. Before that date, trustees of UK occupational pension plans will need to undertake some preparatory work, including: Creating records of all personal data processing activities (or confirming delegation to plan administrators and obtaining confirmation that they will do this) and ensuring administration … Continue Reading
Last week (4 May 2017), the European Commission published a legislative proposal to amend various provisions of the European Market Infrastructure Regulation (Regulation 648/2012) (EMIR). The proposal was adopted following a general report on EMIR published by the Commission in November 2016. Although the report indicated that “no fundamental change should be made to the … Continue Reading
The Upper Tribunal has rejected an application by the trustee of the British Coal Staff Superannuation Scheme for an expedited referral of its case to the Court of Justice of the European Union (“CJEU”). The Upper Tribunal decided that the unprecedented circumstances arising from the triggering of Article 50 did not alter its established test, … Continue Reading
New regulations, coming into force in June 2017, will introduce stricter EU anti-money laundering requirements into the UK and seem likely apply to pension plans. The potential criminal penalties for breach of the regulations are likely to bring this to the forefront of people’s minds. Will the new regulations apply to pension plan trustees? Probably! … Continue Reading
“All the better to eat you with, my dear.” And so our precautionary tale begins. Chapter 1 – Lost in the woods Once upon a time the Pensions Act 2004 (the Act) was introduced and it gave a variety of enforcement powers to the newly formed Pensions Regulator (TPR). For a time at least, employers … Continue Reading
A client asked me a pertinent question yesterday, along the lines of: “Do the pensions changes announced in the last Budget still stand given that they are not yet enshrined in legislation and Parliament is soon to be dissolved?” The short and unhelpful answer is: “It depends…” But what exactly does it depend upon? By … Continue Reading
Ever heard the phrase “omnia praesumuntur rite esse acta”? Me neither, until a Scottish court handed down its judgment in the case of Knight v Sedgwick Noble Lowndes. It has been known for some time that the Scottish courts generally take a pragmatic approach to the construction of pension plan documentation. For example, in a … Continue Reading
Do your pension plan rules marry-up with member expectations? Since the Millennium it is fair to say the world has changed a great deal for defined benefit pension plans. Not least of the changes trustees have had to contend with are those in respect of survivors’ benefits. The majority of defined benefit pension plans make … Continue Reading
The money purchase annual allowance (MPAA) affects individuals who have accessed their UK pension savings flexibly – it restricts further tax-free contributions they can make to defined contribution registered pension plans. A change of tactics The original MPAA introduced in 2015 was £10,000. Just two years later the Government’s response to its MPAA consultation, issued … Continue Reading
Let’s start with the small print… From April 2017 it will be possible for individuals to take regulated financial advice and to have up to £500 deducted from their defined contribution (DC) pension pot and paid over directly to a financial adviser. This is for regulated “retirement financial advice”, defined as “advice in respect of … Continue Reading
Trustees and pensions administrators should revise their transfer processes following an announcement in the UK Spring Budget designed to “tackle abuse of foreign pension schemes”. What’s the issue? In summary, where a member makes a formal request to transfer pension funds to an overseas pension plan the transfer will be an authorised payment provided that … Continue Reading
The pensions industry can breathe a sigh of relief after the Spring Budget passed by with very little change to concern it. The only mentions of pensions (and some of these were in the accompanying briefing papers rather than the speech itself) were: A 25% charge on transfers to overseas pension plans (QROPS) effective immediately … Continue Reading
The UK Government has issued its Green Paper on the future and sustainability of DB pensions, with consultation closing on 14 May 2017. Despite its 99 pages, the main conclusion is that the system isn’t broken: “Whilst recognising that the system may not be operating optimally in all areas, our main conclusion is that there … Continue Reading
What have Pierce Brosnan, Whoopi Goldberg, Donny Osmond, Kiefer Sutherland, Sarah Palin, Jim Carrey, Charlie Sheen and Priscilla Presley all got in common? They all became grandparents before the age of 50. They are not alone. Many new parents have parents who are still of working age. And as the goalposts for the state pension … Continue Reading
