We have previously reported on the proposed radical shake up of DC pension schemes announced in the Budget earlier this year which is now being translated into legislation (most particularly the Taxation of Pensions Bill - see also our articles on the proposed changes and this Bill in the previous editions of Pensions Pieces). Given the complexity of the proposed legislation, HM Treasury has issued a briefing note (updated 10 December) which gives, in simple terms, an overview of the Bill and explains what it is intending to do.
The Bill itself has been amended substantially since its introduction and an updated draft was published on 4 December (having now passed through the House of Commons). Adoption of the new flexibilities is still optional, but the Bill contains a 'permissive statutory override' which, generally speaking, allows schemes to adopt the new measures even if any provisions of the scheme prohibit them from doing so. As the provisions are complex and implementation is likely to be costly, employers should keep an ongoing dialogue with their scheme trustees to monitor what actions schemes may wish to adopt in relation to the new measures and how these will be communicated to employees.