Professional Pensions is holding a live webinar today at 11am to look at what changes to pension input periods will mean for pension schemes. Register and find out how more here.
The free webinar will be chaired by PP editor Helen Morrissey and hear from expert panellists including Capita Employee Benefits head of marketing and research Robin Hames; Aon Hewitt principal consultant Liam Mayne; Barnett Waddingham head of pensions research Tyron Potts and Sackers partner Claire van Rees.
It will be held on Wednesday 29th July at 11am.
Register for the webinar now:
Webinar: What Pension Input Period changes mean for schemes
The webinar will look at the pension input changes proposed by the government in this year's Budget - changes which will align pension input periods with the tax year.
HM Treasury has already published draft transitional rules to align pension input periods with the tax year by April 2016 and to protect any savings already made before the Budget from retrospective tax charges.
On the face of it, this may seem like a good thing for pension schemes, as the interplay between pension input periods and annual allowances has long been a source of frustration for many.
But, while you might expect PIPs to run concurrently with tax years, in many cases they do not. In addition there is no requirement for PIPs to run for 12 months. This can lead to people unintentionally breaching their annual allowance.
The new rules may well lead to simpler arrangements in the future, but the transitional rules are fiendishly complicated - and could add complexity and cost to many pension schemes.
Under the draft rules, all PIPs that were open on 8 July 2015 ended on 8 July 2015.
The next PIP for such arrangements will run from 9 July 2015 to 5 April 2016. This means that all existing arrangements on 8 July 2015 could have two or three PIPs for the 2015-16 tax year depending on the start date of the open PIP.
Effectively, the 2015/2016 tax year has been split into two mini tax years -the pre-alignment tax year which runs from 6 April 2015 to 8 July 2015 and the post-alignment tax year running from 9 July 2015 to 5 April 2016.
This Professional Pensions webinar looks in detail at what these changes will mean for pension schemes, the challenges they will pose and how these can be overcome.
