Ironically, when the Annual Allowance was first introduced in 2006 it was under the banner of "Pension Simplification
Although the industry awaits the results of the consultation period I cannot help but to think back to the run up to April 2006 and the introduction of pension simplification
badged as "A" Day.
Since the introduction of Pension Simplification
in April 2006, many pension holders registered for Enhanced Protection and/or Primary Protection under the transitional arrangements.
This announcement from the Treasury is intended to simplify the rules brought in by the previous government but, in my experience, pension simplification
is never as 'simple' as it is made out to be.
Started as "pension simplification
" about eight years ago, the new law does consolidate a variety of pension administration issues and fixes a few budding funding and legal problems, but fails in setting a positive future policy.
This was when the new Pension Simplification
regime came in.
And certain elements of pension simplification
which come into force on April 6 next year - A-Day - will create even more generous tax breaks for some savers.
Financial services company Standard Life has implemented the Metafaq eCustomer service solution from customer service software provider Transversal to provide Independent Financial Advisers (IFAs) with online answers to questions on the Pension Simplification
Initiative, along with questions on the Defined Contributions Pensions regime and Inheritance Tax from the UK Government.
Legal said Government initiatives on pension simplification
were expected to lift demand in 2006, but added that saving levels for retirement were still likely to remain 'insufficient
MORE than half (55%) of small firms in the UK are unaware of the government's Pension Simplification
In a survey of small and medium-size businesses, only 9% listed pension simplification
and reform as one of the three most important issues facing them today.
For the most part, the legislation includes pension simplification
provisions that reduce some of the unnecessary complexity in our pension laws.