In what has been an eventful year already for pensions, the Queen's Speech on 4 June highlighted further forthcoming pensions legislation which will:
- introduce new defined ambition pension arrangements to encourage 'greater risk sharing between parties and allow savers to have greater certainty about their retirement savings', which effectively offers a new type of pension scheme, half way between defined benefit and defined contribution;
- provide for the "guidance guarantee", that is the "free and impartial guidance" on the range of options available to them at retirement that is to be offered to individuals free of charge referred to in the March 2014 budget ('the Budget'); and
- will facilitate the pensions flexibility announced in the Budget – i.e. where individuals age 55 or over can access their defined contribution pension savings left over after any tax free cash has been taken subject to their marginal tax rate (for more on the key pensions announcements in the Budget see our e-alert and the article in the June edition of Pensions Pieces on this issue).
The Government has already been consulting on defined ambition and other alternative pension arrangements that may be facilitated in the UK1and has now issued its response and a Government Bill on this subject (see below).