Of interest to all occupational schemes providing benefits which may be considered DB following the new definition of money purchase benefits is the Department for Work & Pensions (DWP’s) newly published detailed guidance paper.
The changes to the definition of money purchase benefits in occupational schemes under Section 29 of the Pensions Act 2014 came into force on 24 July 2014 (with retrospective effect to 1 January 1997).
The guidance is primarily for trustees of occupational schemes and its aim is to help them identify benefits which might be affected by the recent changes in the law, and to understand what the changes mean in practice.
The guidance explains what each of the new regulations means and it is intended to assist trustees in their understanding of the key details of the legislation by complementing the explanatory memorandum to the regulations.
View the explanatory memorandum.
View the DWP guidance.