pensions

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.

Government proposals for combined pension statements to enable people to make informed choices will prove "pointless" as information on the Pensions Credit will be excluded, a pension expert suggests.

The government has scrapped the proposed Limited Price Indexation (LPI) on money purchase schemes in order to increase flexibility and make life easier for scheme members.

Members of money purchase schemes could escape having to pay a recovery charge on any funds above the lifetime limit by selecting enhancements which would normally lower the value of an annuity income, says Standard Life.

Proposed Limited Price Indexation annuities set out in the Pensions Bill may this week be removed from money purchase schemes because they would force members to buy up to three different retirement packages, suggests Scottish Equitable.

LIGHTER TOUCH regulated low-cost savings products could still bring new mis-selling claims from people who lose means-tested benefits as a result of buying them, the Daily Telegraph reports the Financial Ombudsman as saying yesterday.

Friendly society Family Assurance is selling its with-profits life and pensions business to Reliance Mutual Insurance Society as well as some term assurance policies.

Consumers should be given more information on coming pensions legislation if the government wants to incentivise people to save for their retirement, urges the Association of British Insurers.

Personal pension scheme members opting for enhanced protection could post A-day see it become invalidated if they contract out of the S2P, reveals Abbey for Intermediaries.

Revenue proposals to change income drawdown rules through pending pensions legislation will cost the industry millions, warns A J Bell.