The above Order has been laid before Parliament and brings into force the following provisions of the Pensions Act 2008:
- with effect from 26 January 2009, the amendment of TPR’s powers in relation to the implementation of the scheme-specific funding regime. TPR will have the power to intervene in a scheme funding process where it is of the opinion that the trustees’ approach to assessing the scheme’s technical provisions is not sufficiently prudent;
- with effect from 6 April 2009, the abolition of “safeguarded rights” i.e. that part of a pension credit awarded after a pension share (following divorce) which is attributable to the member’s contracted-out benefits. This means divorcees (the majority of those affected will be women) will have greater freedom over drawing benefits, including the option to take a 25% lump sum and the option to draw benefits from age 50; and
- for benefits accrued on and after 6 April 2009, a 2.5 per cent cap on the revaluation of deferred pensions from occupational schemes.
View the Order.