Florin Pensions Blog

The aggregate deficit for the UK’s 6,316 private sector final salary schemes (also known as defined benefit schemes) rose to £236.6 billion at the end of March 2013

In proposals outlined in the Budget on 20 March 2013, the UK Government announced that it will be looking at whether pension schemes (like Self Invested Personal Pensions) should be allowed to invest in residential property made from converted commercial property.  

Last year, 31% of UK companies had closed their final salary schemes.

For anyone following the UK pensions’ industry over the last several decades, one thing has remained certain – change - and 2012 did not disappoint. The Chancellor made several important announcements in his Autumn Statement affecting UK pensions.

Historically women have received a lower level of income from their pension plans than men

The much anticipated UK-US Agreement to implement FATCA (part of the US Hiring Incentives to Restore Employment Act of 2010) was signed on 12 September 2012.

From 6 April 2012 the UK Government has ended contracting out of the State Second Pension

From 6 April 2012 the UK Government is reducing the Lifetime Allowance from £1.8MM to £1.5MM. The Lifetime Allowance was introduced by the UK Government in April 2006 and was a limit against which an individual’s pension was measured. In April 2006 the allowance was £1.5MM and this increased to £1.8MM by 2011. It is unclear whether there will be increases again in the future, although felt unlikely by many commentators in the next five years.