Almost half of UK companies "unprepared" for A-day

Thu, 01 Sep 2005

British company pensions planners are unprepared for the Self Invested Pension Plan changes of next April, says Prudential.

The new rules – "the most radical overhaul of the pensions since 1908" – says the Prudential, will give a significant array of tax breaks to pension cash investments.

A Prudential survey found that almost half (47 per cent) of senior executives at companies with a turnover of more than one million pounds are not prepared for pension tax simplification next April.

Only 14 per cent claim to be fully ready for the changes and a shocking 13 per cent of company bosses say they simply don’t know if they are prepared for the changes or not.

Dave Harris, corporate pensions director, Prudential UK, predicts "red faces all round" when employees start clamouring for the benefits they will be missing out on.

"Unless they wake up to these now they could find themselves under increasing pressure from disgruntled staff faced with the prospect of losing superior pension benefits," he said.

"For instance, scheme rules will normally need to be altered before higher tax-free cash can be paid or before the trustees can agree to something allowed in new legislation, but not in the current scheme rules."


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