InvestAcc - The Retirement Planning Experts

Scheme Pension classifed as defined benefits

Tue, 22 Nov 2011 15:43:24 GMT

In early November, the Pensions Act 2011 received Royal Assent and became law.

Shortly before enactment, some last minute amendments were made that altered the rules surrounding Scheme Pensions, making them classified as defined benefits, rather than money purchase. The changes appear to affect Scheme Pensions provided by SIPP and SSAS arrangements - increasing the costs and burden of running Scheme Pension through these vehicles.

In the last few weeks there have been various views on the seriousness of these changes expressed in the press. In view of the uncertainty, we have decided not to accept applications for Scheme Pension until further notice.