The tax free lump sum of 25% will remain but, from April 2015, DC members who are at least 55 years old will have total flexibility over how they use their pension savings. Interim changes apply from 27 March 2014 which increase trivial commutation limits for all pension schemes and make income drawdown accessible to more DC members.
These new flexibilities will have an impact on trustees of both defined contribution (DC) and defined benefit (DB) schemes. The Government has concerns that more DB members may transfer their benefits to DC schemes and this may have a detrimental impact on the economy. The Government is therefore consulting on whether transfers from DB schemes should be prohibited or restricted.
This webinar focuses on the issues which trustees of DB schemes need to grapple with: should you communicate with DB members about the Budget changes? If so, what should you say (and when)? If your scheme is part way through an incentive exercise where does this leave you? How much difference will the new trivial commutation limits really make?