The Finance Act 2011 received Royal Assent last month. This Act finally introduces the detail of many of the tax changes that have been anticipated for pension schemes. The Act mainly covers the lower annual allowance with associated changes (e.g. “scheme pays” provisions) and changes in relation to compulsory annuitisation at age 75. As these measures are now finalised, members and pension schemes can now properly assess the impact of these on their benefits.
The Pensions Bill is also reaching the final stages of the Parliamentary process, and should receive Royal Assent shortly. The main point covered by this legislation is the anticipated changes to the state pension age.