PENSIONS – PENSION REFORM 2014/15
Synopsis: Today’s papers have been reporting that George Osborne is delivering a further flexibility provision for pensions – the ability to withdraw money as you would from a bank account.
Date posted: Tuesday, October 14, 2014
Today’s newspapers have been filled with pension headlines on the ability to withdraw funds from pension arrangements, as you would with a bank account.
Apart from this being a potentially dangerous and misleading analogy to plant in the minds of the consumers, this is not ‘new’ news – it was actually announced in the draft Taxation of Pensions Bill in August 2014 and was titled ‘the uncrystallised fund pension lump sum’ (UFPLS).
See our Bulletin for full details.
The UFPLS (or FLUMPS as some industry commentators have referred to it) has presumably made current headlines because the Taxation of Pensions Bill is expected imminently. The Bill will contain the flexibility provisions which will include payment of UFPLS, flexi access drawdown and the introduction of the money purchase annual allowance.
We will issue a further Bulletin when the Bill has been published in which we will highlight any changes from the draft Bill published in August 2014 and look at the implications for planning.
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