Differences of opinion over the effects of provisions in the Finance Bill by two major providers has highlighted the difficulty of interpreting proposals set out in the legislation.
At stake are proposed amendments that would enable pension scheme members to protect any funds they have built up before the lifetime allowance comes into force on 6 April 2006, exempting them from paying any recovery charge on pensions above that limit. But, while the issue of transitional protection seems pretty straight forward, there is less clarity when it comes to deciding how contracted out rebates should be treated if members opt for enhanced protection. Abbey for Intermediaries' head of pensions and retirement Mike Brown believes personal pension scheme members who decide to ...
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