Pension expert The Pensions Regulator has issued guidance on the provision of lump sum payments.
The guidelines set out under what circumstances lump sum death benefits can be provided for members of company pension schemes.
Employees should affected should have put in a stakeholder scheme by December 22nd 2005 and must take steps to ensure they are if they were previously unaware of the situation, states the company.
New amendments to the pensions act mean that members of company pension schemes now have to designate a stakeholder scheme in order to fulfil their requirements.
Now, where an employee is offered membership of a company pension scheme for pension benefits, it will be acceptable for the employee to be provided with lump sum death benefits as part of that package.
However, it does not affect the regulator’s view if such benefits are increased or reduced and the continuation of life assurance cover for members after reaching retirement would also be acceptable.
The Pensions Regulator is the new government regulator of company pension schemes in the UK and was created under the Pensions Act 2004, with wider powers and a more proactive and risk-focused approach to regulation.
The Pensions Regulator gives advice on lumps sum payments
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The Pensions Regulator gives advice on lumps sum payments
Mon, 03 Jul 2006
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