Miscellaneous matters

Treasury and PIA action on personal pension misselling
1998

• Pressure continues to be put on firms not taking adequate action in the misselling review. During 1998 the PIA has levied fines on a number of firms, including three fines of over £500,000.

Inland Revenue consultation paper on enhanced flexibility
2 February 1998

• Considers three options to increase flexibility including a new option whereby members would be permitted to take their pension between ages 50 and 75 whether or not they had actually retired.

DSS notice on occupational schemes with members in the UK and other EU states
25 March 1998

• The DSS has agreed with Eire that, where a scheme has members in both countries, all members will be treated as if employed and resident in the country where the scheme is set up. Similar arrangements are possible with other EU states.

Custom & Excise paper on VAT Groups
3 June 1998

• Whilst not expressly referring to pension schemes, the likely effect of these proposals is that pension schemes will no longer be able to join the employer's VAT group.

DSS consultation paper and draft bill on pensions on divorce
June 1998

• The draft bill provides for pension rights to be split on divorce, with each party taking their share as their own individual benefit. Pension splitting is due to come into force in April 2000, but many are recommending that it be delayed until 2001.

ABI Review of FSAVCs
19 October 1998

• Members of the ABI are to conduct a review of the selling of FSAVCs where individuals took out such funds since 1988 and missed out on employer contributions as a result or were already close to Inland Revenue limits.

DSS Consultation Paper on future pension provision
15 December 1998

• The Government published its long-awaited Green Paper on pensions. It proposes that a new minimum income guarantee will apply to existing pensioners whilst a new State second tier pension will be introduced. In addition, private pension arrangements are to be expanded through new stakeholder pensions. See page 22 for further details.