FOR ADVISERS ONLY
We’re changing our money laundering process for company bank accounts 20 August 2021 Share Share We're making a change to our money laundering process when you submit any application where regular contributions are being made from a company bank account. We told you earlier this year that we were...
News
Blog
Anti-money laundering - we’ve made some changes to our identity verification checks for workplace pensions 2 April 2020 We’ve improved our identity checking process for new workplace schemes. We’ve removed the need for you to complete our money laundering form, and instead we’ll be carrying out...
Additional money laundering checks for ongoing servicing to workplace pensions 12 February 2021 We’re adding some additional checks to our ongoing servicing of workplace pension schemes. This will further tighten our money laundering controls needed to comply with the Fourth Anti-Money Laundering...
...on the following: Relief at source Collective money purchase benefits (CMPs) Managing Pension Schemes service – accounting for tax return Guaranteed Minimum Pension (GMP) Equalisation newsletter – July 2020 Pension flexibility statistics Annual allowance Qualifying Recognised Overseas Pension Schemes...
Information and guidance
Can salary exchange save your clients money? 23 February 2022 In April 2022, the Government will be increasing National Insurance contributions. We look at how salary exchange could help your workplace clients mitigate the full amount of the increase and reduce the amount their employees pay. From...
Salary exchange
Workplace pensions
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Independent Governance Committee (IGC) annual report 26 August 2021 Our IGC has published its annual report which sets out the committees’ views on the value for money that we provide our workplace pension customers The committee found that Royal London continues to provide value for money overall...
Contracting-out of the State Second Pension It is no longer possible to contract-out of the State Second Pension (S2P) Important note Since 6 April 2012, it has not been possible to contract out of S2P using a money purchase or appropriate personal pension/ stakeholder plan, meaning it was only...
...profits are known at the end of the financial year. Infrequent money purchase contributions The amendment allows payments which have been made within one tax year less frequently than quarterly to count as infrequent money purchase contribution amounts. Where the amount of the infrequent money purchase...
...in a pension arrangement in an earlier year to have unused annual allowance to carry forward, although you don't have to have contributed. You can still use carry forward if the tapered annual allowance applies. If the money purchase annual allowance applies you cannot carry forward unused annual...
...with tax years. Annual allowance is currently £40,000. Any contributions over the annual allowance available attract a tax charge. A reduced annual allowance could apply if the money purchase annual allowance or tapered annual allowance has been triggered. Case study PTM051000:Annual allowance What...
...that they have the money they need to be able to make choices that let them enjoy life. Many people can feel unsure when it comes to everyday finances, financial planning and coping with important financial decisions or life’s big changes. With this uncertainty and the ongoing impact of Covid-19 and Brexit...
...paid by a third party, for example a grandparent. The annual allowance is currently £40,000. If the money purchase annual allowance has been triggered, an annual allowance charge will apply if pension contributions exceed £4,000 in a year. Individual, employer and third party contributions all count...
Taking action together for positive outcomes 28 October 2021 Share Share By investing with Royal London, your clients are not only putting their money in reliable hands, but responsible ones too. We know your clients want a good financial return on their investments, but they also want their money...
. A payment made under these rules is not actually a trivial commutation lump sum but it is treated as a trivial payment for taxation purposes. This means that if the payment is made from uncrystallised money, 25% will be tax-free and the rest chargeable to income tax as pension income. The payment...
...on 5 April 2006) under the scheme on the same day. The actual formula is the same for money purchase and defined benefits schemes but how it is applied in practice is different. The different calculations are explained below. Money purchase schemes This is calculated in 2 parts, the pre-6 April 2006...
...to 17% in 2020. This will have a marginal impact on the cost for companies providing relevant life cover for employees but the relative cost of the cover remains unchanged. This will also apply to other expenses such as pension contributions. Pensions Money purchase annual allowance (MPAA) Policy paper...
...the standard annual allowance or if the members flexibly access their pension savings, the money purchase annual allowance, and so in line with this, there are two types of PSS, logically a standard pension savings statement and the Money purchase pension savings Statement. Ryan: So, what about...
...of pension scheme. Any investment held before 6 April 2006 is still subject to the rules in force when it was entered into and is not affected by the post-6 April 2006 new rules unless there's a change to the original terms. Trustee's borrowings Trustees of pension schemes can borrow money, provided...
...their pension before age 55. Clients could incur massive tax charges of 55% of their pension savings in addition to the scammers’ fees, which could be up to 30% of the value of your client's savings. And in some cases, clients could lose all their money. Clients should also watch out for offers of free...
...pathways From 1 February 2021, pension providers must offer ‘investment pathways’ to non-advised drawdown customers who move all or part of their pension savings into drawdown or transfer money already in drawdown to a new drawdown plan. These customers must also be offered the choice to stay...
...for the member to cash in their investments or get their money out of the scheme. The “investment fund” if it ever existed will be depleted by charges and fees until it is valueless. Most importantly for the scammer the amount of money paid in is maximised and none of the money is wasted by paying...
...at the recipient’s marginal rate of tax. So if a lump sum is taken then this could have major tax implications but remember income tax is only paid when drawdown funds are withdrawn so if the money isn’t touched – or kept within the personal allowance then there won’t be an income tax charge...
...is reduced because of tapering or the money purchase annual allowance is triggered? If the individual has a reduced annual allowance due to the money purchase annual allowance applying or their annual allowance is tapered due to having higher earnings, this does not affect the conditions above...
Retirement Solutions
...nominated by the member or the scheme administrator. The beneficiary accepts the benefits then decides what they would like – lump sum, annuity or drawdown or potentially a mixture. If the beneficiary takes lump sum or annuity then that money leaves the pensions system. It can only be passed on after that B...
...relief on pension contributions (Scotland) 3rd party contributions - Saving for future generations Pt I 3rd party contributions - Saving for future generations Pt II A Annual allowance Annual allowance and money purchase annual allowance (rates) Annual allowance - money purchase annual allowance...
Pension freedom
Auto enrolment
Frequently asked questions
Regulatory charge cap Lifetime allowance Annual allowance Money purchase annual allowance Tapered annual allowance Public service pension reform remedy (McCloud) State pension Protection Inheritance tax ISAs 2021 Spring Budget 2021 Spring Budget Summary Furlough scheme Income tax Charge cap...
...grown and developed over the years, our purpose as a mutual has never been more relevant. We help families in the UK and Ireland to protect what they have today and invest in a better tomorrow. We are responsible stewards of our customers’ money. As a mutual, our customers get to share in our success...
...available from plans that allow drawdown. There is no limit to the amount of income that can be taken. The money purchase annual allowance limits the amount of future pension savings that can be made. Who can use flexi-access drawdown? FAD is only available from plans or arrangements if the scheme...
...to the lifetime allowance. Anyone who selected enhanced protection had to stop paying into any money purchase scheme (excluding any on-going contracted-out payments to an existing scheme) prior to 6 April 2006. Members of defined benefit schemes or cash balance arrangement can only build up limited benefits...
Defined benefit schemes could only offer a dependant's scheme pension. Also, money purchase schemes had to offer an open market option if income was to be secured by an annuity. Dependant's scheme pension A scheme pension may be provided under both a defined benefit or a money purchase scheme...
...input periods are aligned with tax years. Tax relief is limited to contributions up to the higher of £3,600 per tax year or 100% of earnings. Annual allowance is £40,000 unless the money purchase annual allowance or tapered annual allowance apply. Member contributions are unrestricted although a tax...
...of the questions we are asked most often. Auto enrolment - our top five questions Frequently asked questions Pensions Regulator guidance The Pensions Regulator has produced a number of useful documents on auto enrolment Auto enrolment: detailed guidance Auto enrolment: guidance on certifying money...
. This will allow up to £4,000 of savings each year to which the Government will add a 25% bonus. Contributions will be made with the individual’s own cash. This additional bonus will be payable up to a maximum of £1,000 for each year between the ages of 18 and 50. The money in a Lifetime ISA can be used...
? section below When does the first pension input period start? For plans that became registered pension schemes on 6 April 2006 the first pension input period began: For a money purchase scheme (other than a cash balance scheme) when the first contribution was paid after 6 April 2006, whether...
, but here’s a suggestion which you can use to boost clients' assets at any time. Case study Let's consider a client who has money in an ISA and how they can increase their assets by switching it to their pension. Meet Graham In April 2019: Graham was aged 55 he was employed, had a pension fund...
...a protected pension age, if the combined value of all of their registered pension scheme benefits is not more than £30,000, they can take all of their defined benefits and any in-payment money purchase in-house scheme pension as a lump sum. This must include the value of any pensions in payment...
...their money into cash or suspend payments into their pension altogether. It’s important to highlight the benefit of investing more now to benefit from compounding over the long-term. Remember that the golden rule of investing is, there's only one rule, and that's ‘buy low’. Clients...
. Alternatively, the pensioner will be allowed to swap their annuity for a flexi-access drawdown plan from which they can withdraw money without limit or a flexible annuity. Selling an annuity whether for a lump sum, flexi-access drawdown plan or flexible annuity will trigger the Money Purchase...
...are being complied with. Annual benefit statement - Each member must receive an annual statement. This must include the value of their fund, the amount of contributions paid in and the dates paid, the amount of any investment gain or loss and details of the charges deducted. Can money be transferred out...
...more than 5% can apply to HM Revenue and Customs for a scheme specific valuation factor which can be higher than 20:1. Pension commencement lump sums are valued using a factor of 1:1 and are added to the above value. HMRC Pensions Tax Manual - PTM088620: BCE 2 entitlement to a scheme pension Money...
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