The Treasury has confirmed rumours that it will launch a consultation on income drawdown limits are untrue.
The statement comes after Legal & General pensions strategy director Adrian Boulding claimed he was told by a source close to the situation that the Treasury will consult on the limits imposed on drawdown in April 2011 on Friday 16 November.
However, since initially making his claim, Boulding has said his source had confused income drawdown with a set of PAYE regulations which are due for consultation.
A spokesman said the Treasury works openly with stakeholder groups on all aspects of pensions policy and said the drawdown limits had been discussed in this context, but that there will be no consultation.
There has been controversy over the new limits, which dictate that when investors undertake their compulsory reviews of their income drawdown levels (every three years for the under-75s and every year for older investors), they will become subject to the new rate of drawdown set at 100% of an equivalent annuity, rather than 120%.
Industry Voice: Scottish Widows pension expert Robert Cochran and economist Andrew Scott discuss the future of employment and income, in episode three of Scottish Widows' podcast series.
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