Family pension schemes ?


D

Daytona

The new pension rules coming in to force on 6/4/6 seem to allow the
remaining fund to be passed on to other scheme members upon death as
long as the person drawing the pension had opted for the ASP option
beyond 75.

I've heard that companies are looking into providing family pension
schemes as a result.



"4.5 Death Benefits

- If pension benefits are being provided using ASP, any funds
remaining on death after age 75 must be used to provide dependants’
pensions. Where there are no dependants, the scheme may; reallocate
the surplus funds to other scheme members, refund it to a sponsoring
employer net of 35% tax or pay to a registered charity."


"4.3 Secured Income

- Alternatively secured pension (ASP), an extension to income
withdrawal beyond age 75. The "security" is achieved by reducing the
maximum income that can be taken to 70% of the FSA single life annuity
rate for a 75 year old. Minimum income is zero. Maximum income is
reviewed annually."

<URL:http://www.lifetimelimit.co.uk/ltl_docs/ataglance.pdf>


Daytona
 
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