UK pensions

[nong38]

You have to order fresh turkeys at Waitrose and they are expecting to supply 250,000 of them this year! The frozen ones always tasted fine to m, especially the butterball ones and were a lot less expensive but times change dont they, one thing that does not is that at Christmas people will buy anything at any price and not worry about it until January when the bill comes in. At any other time of the year they would not even consider it and yet they never learn and ten quid hardly buys the stuffing these days, in fact if you are not careful you could be the one that is stuffed!

Noodles anyone?

Edited December 3, 2016 by nong38

[nong38]

18 hours ago, dick dasterdly said:

One of these days I really must look into why my private/company pensions (that are supposed to be index-linked in some way) are rising by a tiny percentage - if at all!

 

Sounds as if some "non-discount supermarkets" are looking to make a 'killing' from their wealthy customers.

 

Interesting that the article also mentioned that the cost had dropped in other supermarkets - but it makes a great (albeit misleading) headline.

My private pension is taken as the December inflation figure whilst the DWP takes September figure.

[steve187]

my private/company pension rising this year by 1%, September cpi, better than last years 0%

[evadgib]

As will Military Pensions from Apr 17.

[champers]

On 12/3/2016 at 3:21 PM, nontabury said:

 

   I just wonder how this influx of UK pensioners is costing the government,if you take into account, the increased financial burden on the NHS, social services etc.,

I've always thought that it would benefit the Chancellor of the Excheaquer to pay a bonus to those pensioners who go to live in a foreign country. As it is, the government is quite happy to pay the annual increase to those pensioners living in the EU, and at the same time paying any medical costs to the EU country in which they live.

 

Not for much longer; perhaps; post Brexit. 

[dabhand]

Seems that the draft UK Finance Bill has confirmed that the 70% requirement is likely to be abolished for previously non qualifying ROPS. However, it looks like there are a few strings attached. In addition, there was a clear expectation of this happening as part of the 2015 Finance Act but there was a late change of mind, so no counting chickens.

 

http://www.international-adviser.com/news/1033023/rops-locally-regulated-uk-tells-providers

(Note: registration (free) is needed to view the full article)

 

In a draft of the Finance Bill, published on Monday, the UK confirmed it will abolish a rule requiring Rops - outside the EU/EEA, India, the US or a country that doesn’t have a double tax agreement with the UK - to earmark 70% of funds to provide members with an income for life.

 

The removal of the rule, announced in the Autumn Statement last month, will mean all Rops including those registered outside the EU will now be able to allow offer flexible access in line with the UK’s pension’s freedom, introduced in April 2015.

[Lite Beer]

I became eligible for State Pension on 19th November 2016. My birthday.

I am supposed to be getting paid every 4 weeks.

Today 7th Dec I received 2 weeks payment into my bank.

Logic tells me that my next payment will be in 4 weeks time.

 

Anyone know for sure.

Thanks.

[nong38]

4 hours ago, Lite Beer said:

I became eligible for State Pension on 19th November 2016. My birthday.

I am supposed to be getting paid every 4 weeks.

Today 7th Dec I received 2 weeks payment into my bank.

Logic tells me that my next payment will be in 4 weeks time.

 

Anyone know for sure.

Thanks.

Thats likely what will happen you are just entering the system so look and see what happens about 5th of January next year.

I seem to remember the same thing happened to me so dont worry.

[Lite Beer]

Thats likely what will happen you are just entering the system so look and see what happens about 5th of January next year.
I seem to remember the same thing happened to me so dont worry.

Thanks.
It just seemed a bit odd after being told I would get paid 4 weeks after my birthday.

[sumrit]

7 hours ago, Lite Beer said:

I became eligible for State Pension on 19th November 2016. My birthday.

I am supposed to be getting paid every 4 weeks.

Today 7th Dec I received 2 weeks payment into my bank.

Logic tells me that my next payment will be in 4 weeks time.

 

Anyone know for sure.

Thanks.

 

Your pension day is on a Wednesday(decided by your NI number), paid four weekly in arrears and starting on the 7th Dec (not sure how they determine the actual first Wednesday after your birthday when they will start paying you). Your pension payments are paid in arrears and start on your first full week after your birthday. So, as your birthday was on  Saturday 19th November your pension will actually start from the first Wednesday after that (two weeks ago on the 23rd November). So you have received the two weeks pension you are due up to today. You will receive four weeks pension every four weeks from today.

 

This was explained in the letter I received from the DWP when I qualified for my pension a year ago.

[Lite Beer]

9 hours ago, sumrit said:

 

Your pension day is on a Wednesday(decided by your NI number), paid four weekly in arrears and starting on the 7th Dec (not sure how they determine the actual first Wednesday after your birthday when they will start paying you). Your pension payments are paid in arrears and start on your first full week after your birthday. So, as your birthday was on  Saturday 19th November your pension will actually start from the first Wednesday after that (two weeks ago on the 23rd November). So you have received the two weeks pension you are due up to today. You will receive four weeks pension every four weeks from today.

 

This was explained in the letter I received from the DWP when I qualified for my pension a year ago.

 

Not in the letter I received.

Don't forget that I am under the new system and I don't think the  NI number system still exists.

This was all I was told in the letter.

 

 

[JohnC]

Have a look here , all explained.

https://www.gov.uk/state-pension/what-youll-get

[evadgib]

This might be of interest to any expecting deferred military pensions:

 

https://www.gov.uk/government/news/service-to-civvy--2      

Edited December 8, 2016 by evadgib

[billd766]

3 hours ago, evadgib said:

This might be of interest to any expecting deferred military pensions:

 

https://www.gov.uk/government/news/service-to-civvy--2      

 

When I joined the RAF Pontius was still a trainee Pilate.

[billd766]

Warning. Warning. Warning.

 

I just received an email this morning supposedly from HMRC telling me that I am due a tax refund.

 

I will place it into SPAM without opening it.

 

I have no idea if it is genuine or not but I will copy and paste the info and contact HMRC direct.

 

If anybody else gets one just be very careful.

[roo860]

Warning. Warning. Warning.
 
I just received an email this morning supposedly from HMRC telling me that I am due a tax refund.
 
I will place it into SPAM without opening it.
 
I have no idea if it is genuine or not but I will copy and paste the info and contact HMRC direct.
 
If anybody else gets one just be very careful.

HMRC will never contact you via email ref a rebate.
It's bs, treat it as such.


Sent from my SM-G920F using Thaivisa Connect mobile app

[billd766]

3 hours ago, roo860 said:

 

 

HMRC will never contact you via email ref a rebate.
It's bs, treat it as such.


Sent from my SM-G920F using Thaivisa Connect mobile app
 

 

 

 

I was 99% certain that it was, but I posted a warning in case other people also get a similar email.

[dabhand]

Further IA article with an update on ROPS and the proposed overseas pension changes noted in the recent UK Finance Bill.

 

http://www.international-adviser.com/news/1033175/gibraltar-nad-isle-hit-hardest-uk-rops-reforms

 

Overseas pensions offered from Gibraltar and the Isle of Man are most at risk of losing their 'recognised' status when the UK brings in a new rule requiring such products to be regulated in the country where they are established.

[Oxx]

16 minutes ago, dabhand said:

Further IA article with an update on ROPS and the proposed overseas pension changes noted in the recent UK Finance Bill.

 

Perhaps you could post the relevant sentences? There's nothing in the publicly available excerpt that says anything about the overseas pension changes.

[dabhand]

Just now, Oxx said:

 

Perhaps you could post the relevant sentences? There's nothing in the publicly available excerpt that says anything about the overseas pension changes.

 

ROPS - Recognised Overseas Pension Scheme.

[Oxx]

6 minutes ago, dabhand said:

11 minutes ago, Oxx said:

 

Perhaps you could post the relevant sentences? There's nothing in the publicly available excerpt that says anything about the overseas pension changes.

 

ROPS - Recognised Overseas Pension Scheme.

 

I think you're missing the point.  The UK Finance Bill suggested flexibility in withdrawing capital from one's pension plan.  It didn't mention (IIRC) derecognition of certain regimes, so the available part of the  link your provided bore no relationship to your statement "Further IA article with an update on ROPS and the proposed overseas pension changes noted in the recent UK Finance Bill".

 

So, does the article actually address the points raised by the Finance Bill (and a subsequent announcement on the subject) or not? And if so, what does it say?

[dabhand]

Just now, Oxx said:

 

I think you're missing the point.  The UK Finance Bill suggested flexibility in withdrawing capital from one's pension plan.  It didn't mention (IIRC) derecognition of certain regimes, so the available part of the  link your provided bore no relationship to your statement "Further IA article with an update on ROPS and the proposed overseas pension changes noted in the recent UK Finance Bill".

 

So, does the article actually address the points raised by the Finance Bill (and a subsequent announcement on the subject) or not? And if so, what does it say?

 

A further article from ICAEW:

http://www.icaew.com/en/technical/tax/budget-and-finance-bills/autumn-statement-2016-report/pensions-and-savings

the eligibility criteria for qualifying recognised overseas pension schemes (QROPS) will be tightened

 

Plenty of other articles on the subject from informed sources.

[Oxx]

1 hour ago, dabhand said:

1 hour ago, Oxx said:

 

I think you're missing the point.  The UK Finance Bill suggested flexibility in withdrawing capital from one's pension plan.  It didn't mention (IIRC) derecognition of certain regimes, so the available part of the  link your provided bore no relationship to your statement "Further IA article with an update on ROPS and the proposed overseas pension changes noted in the recent UK Finance Bill".

 

So, does the article actually address the points raised by the Finance Bill (and a subsequent announcement on the subject) or not? And if so, what does it say?

 

A further article from ICAEW:

http://www.icaew.com/en/technical/tax/budget-and-finance-bills/autumn-statement-2016-report/pensions-and-savings

the eligibility criteria for qualifying recognised overseas pension schemes (QROPS) will be tightened

 

Plenty of other articles on the subject from informed sources.

 

Yet again you've posted a link that provide zero information.  The only sentence relating to ROPS is (as you state):

 

"the eligibility criteria for qualifying recognised overseas pension schemes (QROPS) will be tightened".

 

That is utterly uninformative.

 

How about a proper link that relates to (in your words) "the proposed overseas pension changes noted in the recent UK Finance Bill"?

 

 

[poohy]

53 minutes ago, Oxx said:

That is utterly uninformative.

 

How about a proper link that relates to (in your words) "the proposed overseas pension changes noted in the recent UK Finance Bill"?

This may be more helpful

On the 29th November 2016 we issued a detailed email communication covering the Autumn Statement. You can find a copy of this here.

Further documents were issued on Monday 5th December 2016:

• Draft Finance Bill 2017

• Draft legislation: The Pension Schemes (categories of country and requirements for overseas pension schemes and recognised overseas pension schemes) (Amendments) Regulations 2017

• Consultation on Pensions Scams

What do these proposals mean?

What opportunities do they represent?

 

1.       Draft Finance Bill 2017 relating to Pensions

A.      Restriction of the Money Purchase Annual Allowance (MPAA) to £4,000 - Consultation is open from 23rd November 2016 until 15th February 2017 to reduce the MPAA, which restricts the amount of tax relieved contributions an individual can make in a Tax Year into a Defined Contribution Pension if they have flexibly accessed their Pension savings. This can be found here. 

Impact 

Consideration needs to be given by any Member seeking to return to the UK & eligible to avail of on-going UK Tax Relief on contributions before accessing benefits flexibly.

 

B.      Changes to the tax treatment of Foreign Pension Regimes - draft regulations to align the tax treatment of Foreign Pensions more closely with the UK’s Pension Tax Regime.

This will include:

• In respect of relevant transfers made on or after 6th April 2017 to a QROPS, the five year rule with regards to Member payment charge provisions is extended to 10 years. This does not apply retrospectively for payments from Funds transferred before the 6th April 2017.

• The proposed amendments to ITEPA 2003 will see Income Tax on 100% of Foreign Pension Income in the hands of UK Residents, instead of the current 90%, with effect from 6th April 2017.

Impact

• Opportunity for the 5 year rule to continue to apply on future payments for transfers made up to 6th April 2017 – i.e. access 30% Lump Sum instead of 25% for Members resident outside the UK at point of payment and preceding 5 full tax years.

• Removal of ITEPA 2003 benefits provides that 100% of Foreign Pension Income paid to a UK Tax Resident is taxable. Consideration needs to be given to timing for UK Resident Members who plan to take income in 2017. Use of QROPS for LTA planning is still available and should be considered by Advisers.

 

2.       QROPS Rules / Qualifying Criteria.

• The Pension Schemes (categories of country and requirements for overseas pension schemes and recognised overseas pension schemes) (Amendments) Regulations 2017 was published in draft and is subject to consultation to the 1st February 2017. 

• Under this instrument, the 70/30 rule is abolished for Non-EU Schemes provided the Scheme or Provider is regulated and the Scheme is based in a territory with a Tax Information Exchange Agreement with the UK, hence paving the way for such Schemes to offer Flexible Access Drawdown.
   

• The Instrument also introduces a change to allow for payments to be made before age 55 where it would be an authorised payment if paid by a Registered Pension Scheme - this includes Short Service Lump Sum or Serious Ill Health Lump Sum, subject to legislation in the Jurisdiction.

• The draft legislation can be found here together with the draft explanatory notes here and is subject to consultation from 5 December 2016 to 1 February 2017. 

Impact

Subject to the consultation and implementation date, Gibraltar and Isle of Man should now be in scope to offer full flexibility with effect from April 2017 (or Royal Assent), subject to amendments to local legislation in the respective Jurisdiction to allow this.

We are currently seeking clarification as to whether individual Gibraltar Schemes will require regulation ahead of these proposed changes.

 

3.       Pensions Scams

As also outlined in the Autumn Statement, a consultation has been issued with a view to tackling abuse in this area.

The consultation is open until 13th February 2017 and can be found here.

Among measures proposed are:

• Banning Cold Calling in relation to Pensions.

• Limiting the statutory right to transfer.

• Reducing the ability to open fraudulent Schemes.

Impact

This measure is still subject to consultation, and whilst the banning of cold calling and reducing the ability to open fraudulent Schemes is welcomed, we wish to ensure that these measures do not allow Ceding Schemes to restrict or delay transfers to Overseas Schemes, and that any such restriction should be prescribed.

Momentum Pensions, in conjunction with UK law firm Weightmans has already structured detailed due diligence packs in this regard, but will reply in detail on the measures included in the consultation and monitor any consultation responses, and react accordingly.

 

Summary

• Any clients presently considering the merits of a transfer to QROPS should avail of the current 5 year rule in respect of the the Member Payment Charges, which will be increased to 10 years for transfers after 6th April 2017. This should maximise PCLS benefits.

• Any UK Resident Members currently receiving income from a QROPS should review their income needs whilst the 90% rule is in place for the remainder of the current tax year.
   

• Transfer of a UK Pension to QROPS is a Benefit Crystallisation Event – BCE8. The current planning opportunities that exist around the Lifetime Allowance (£1m in 2016/17) remains unchanged. 

A number of these measures are in Draft and are subject to consultation and further clarification, not least by individual Jurisdictions. Momentum Pensions will issue further communications as soon as there are developments.

[dabhand]

45 minutes ago, Oxx said:

 

Yet again you've posted a link that provide zero information.  The only sentence relating to ROPS is (as you state):

 

"the eligibility criteria for qualifying recognised overseas pension schemes (QROPS) will be tightened".

 

That is utterly uninformative.

 

How about a proper link that relates to (in your words) "the proposed overseas pension changes noted in the recent UK Finance Bill"?

 

 

 

How about this?

https://www.gov.uk/government/publications/foreign-pension-schemes/foreign-pension-schemes

the 70% rule will be removed from the conditions that a pension scheme has to meet to be an ‘overseas pension scheme’ or a ‘recognised overseas pension scheme’ and the pension age test is revised so that additional payments may be made and the test still be met. As a result if a non-occupational pension scheme is not regulated and the provider of that scheme is not regulated, it will not be able to be a QOPS or QROPS

 

You seem to be completely unable to gather your own information on this subject and require to be constantly spoon fed. That does it for me acting as your link provider. Suggest you do your own research for a change.

[evadgib]

Open wide....

 

https://www.gov.uk/government/news/pension-providers-making-good-progress-on-reducing-fees-and-charges 

 

(Seen during regular trawl this evening)

[sandyf]

On 12/7/2016 at 9:27 PM, sumrit said:

 

Your pension day is on a Wednesday(decided by your NI number), paid four weekly in arrears and starting on the 7th Dec (not sure how they determine the actual first Wednesday after your birthday when they will start paying you). Your pension payments are paid in arrears and start on your first full week after your birthday. So, as your birthday was on  Saturday 19th November your pension will actually start from the first Wednesday after that (two weeks ago on the 23rd November). So you have received the two weeks pension you are due up to today. You will receive four weeks pension every four weeks from today.

 

This was explained in the letter I received from the DWP when I qualified for my pension a year ago.

That confused me when I started but I never had any explanation. My birthday was 26th August but pension never started until 1st Sept.

[sandyf]

Fed as increased interest rates so big surge in the dollar overnight, wiped out recent gains in the pound and devastated gold.

[i claudius]

And Carney the clown is in charge of the BOE,God help us

Sent from my ASUS_T00J using Tapatalk

[sumrit]

On 12/15/2016 at 10:04 AM, sandyf said:

That confused me when I started but I never had any explanation. My birthday was 26th August but pension never started until 1st Sept.

I've spoken to several people and very few seemed to understand why their pension wasn't paid from their actual 65th birthday, so for those confused or not given an explanation as to when and what day their state pension starts this might help.

 

For me, my birthday was on Monday 21st and my NI Number  is ## ## ## 84 # which means my pension is paid on a Friday and started on the first Friday (25th) following my birthday. It's also paid in arrears.

 

 

The day your pension is paid depends on your National Insurance number.

Last 2 digits of your National Insurance number	Day your State Pension gets paid
00 to 19	Monday
20 to 39	Tuesday
40 to 59	Wednesday
60 to 79	Thursday
80 to 99	Friday

Your first payment is made at the end of the first full week after you reach State Pension age.  It won’t include the time between reaching State Pension age and your normal payment day if that’s less than one week.