Pension law changes expected in 1999

United Kingdom

During 1999 the following are expected:

  • Introduction of the single European currency on 1 January 1999 in the majority of EU Member States precipitates administrative and investment changes in UK pension schemes.
  • Pensions Ombudsman continues to seek to widen his jurisdiction and extend his powers.
  • Decision from the European Court of Justice on the points referred to it by the House of Lords in the part-timers test case, Preston v Wolverhampton.
  • Loss of higher rate tax relief on contributions.
  • OPRA becomes less tolerant of 'repeat' breaches of the Pensions Act 1995 and Regulations, imposing stiffer penalties where no or insufficient remedial action was taken by employers or schemes.
  • Inland Revenue fines those pension schemes selected to complete tax returns which miss the deadline of 31 January 1999.
  • Trustees encouraged to exercise voting rights.
  • Trustees review investment policies in the light of case law attacking sub-underwriting and share buy-backs as trading.
  • DSS amends draft Pension Sharing on Divorce Bill following completion of the consultation process.
  • Fines imposed on a diminishing group of insurance companies for failing to meet the phase 1 misselling review deadline, and the industry moves into phase 2.