The government has reduced proposals for the minimum amount of income which must be drawn from an Alternatively Secured Pension from 65% to 55% of a comparable annuity for a 75 year old, but has retained the unauthorised payment charges on funds left over when a member dies.
However, in Budget Note 19 (BN19), the government says following consultation with industry, there will be special rules for scheme members who cannot be traced at age 75 who at the moment are automatically placed in ASP. In addition, the document confirms the new tax charges, which will be included in full in the Finance Bill 2007, will not affect funds where the member or dependent dies before the 5 April 2007 - a change from the Pre-Budget cut-off date of 6 December 2006. Despite industry campaigns, the government has refused to remove the unauthorised payment charge, however it says...
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