It is now almost six months since George Osborne’s budget announcement rocked the pensions industry and Steve Webb’s controversial comments that people should be able to use their pension savings to buy a Lamborghini (if they want to) grabbed the news headlines.
In order to meet its ambitious plans for April 2015, the Government has been driving forward legislative change at breakneck speed with different sectors of the pensions industry keeping pace alongside it. The latest draft legislation, the Taxation of Pensions Bill, will amend legislation in many of the areas that the Government consulted upon as part of its Freedom and choice in pensions consultation. Most of the changes will come into force in April 2015.
Where trustees have an element of DC in their pension plans ‘doing nothing’ is not a genuine option. Our communication highlights the key areas of change affecting pension plans in this Bill and includes some of the comments that we made in response to the Government’s consultation.