Luton Borough Council was prosecuted by the HSE late last year following an incident at a high school in which an assistant headteacher was attacked by a pupil and left with life-changing injuries.
HMRC have now published details of how savers can apply for protections so that they will be able to continue to benefit from a lifetime allowance of £1.25million so long as they cease to accrue pension benefits. With the reduction less than a month away, individuals who may be affected should carefully consider whether they need to apply for protections. As employees will need to stop accruing further benefits in order to keep one of the protections, employers may also want to consider alternative forms of remuneration for these employees.
There are 2 forms of protection available to individuals to enable them to keep a lifetime allowance of £1.25 million. These are known as Individual Protection 2016 and Fixed Protection 2016. There is no particular deadline for applying for these protections but applications before 6 April 2016 will not be processed and will be discarded. HMRC will be introducing an online system for registering for the protections and which is expected to be available from July 2016. Individuals will need to apply to HMRC for a reference number before they take any pension benefits.
If individuals propose to take benefits before the online system is available, they will need to apply to HMRC in writing for a temporary reference number and then make a full online application in July 2016. HMRC has helpfully provided some template wording for interim applications here.
In order to apply for Individual Protection 2016, it will be necessary for individuals to provide HMRC with details of value of their accrued benefits on 5 April 2016. This will need to be broken down. Individuals will therefore need to liaise with their pension scheme(s) in order to get details of their benefits so that they can apply for Individual Protection 2016. In practice this means it won’t be possible to apply for protection until after 6 April.
Similarly for Fixed Protection, it will be necessary to make a declaration that as at 5 April 2016, they did not have any other form of protection. Fixed Protection requires that individuals will need to ensure that no further contributions are made after 5 April 2016 in a money purchase arrangement, and that there is no further benefit accrual in a defined benefit arrangement. This is likely to mean that the individual will need to opt out of further benefit accrual before 6 April 2016.
These changes mean that employees with a pension pot of £1 million or more face either opting out of their pension schemes or paying tax at up to 55% on pension savings above the allowance. This has led employers to reconsider the benefits that they provide and some employers are providing compensation by way of increased remuneration in lieu of pension benefits for those affected.
For more information
If you would like to discuss how the lifetime allowance might impact on the benefits that you offer to your staff, please contact Doug Mullen.
This ebriefing looks at the proposal to set out 'public procurement principles' in the proposed procurement legislation.
Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
Local authorities should be wary of reserving contracts for local suppliers, as recommended by Procurement Policy Note (PPN) 11/20. Other contracting authorities may want to maximise their use of this
Most housing practitioners have perhaps been waiting for this news since the latest lockdown was announced by the Prime Minister on 4 January 2021.
Climate change and biodiversity is an area where significantly faster changes are needed on a global and local basis.
Chris Lloyd Smith, Adrian Leonard and Lisa Whitehouse discuss the planning opportunities available to owners of businesses and how to prepare for unforeseen events.
In their 3rd podcast of the series, Chris Lloyd-Smith and Maria Ramon discuss a number of problems with and difficulties that can arise in mediation and the mechanisms they use to overcome them.
Our previous round-up began by sharing the news that two vaccines had shown very promising test results. Here we are, not even a month later, and the first vaccines have already been administered!
The Covid-19 crisis has demonstrated that there is great resilience and innovation in the housing sector across Greater Manchester, it has also brought shortfalls and other priorities sharply into foc
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.