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&#39Overload as life offices struggle on DWP deadline&#39

Life offices are struggling to implement statutory money-purchase illustrations before the Department for Work and Pensions&#39 deadline of April 2003 because of regulatory overload, claims a leading industry consultant.

IBM director of insurance services Shaun Crawford warns that firms are failing to put a priority on dealing with SMPI as they face a wave of consultations flowing from N2.

Plans to meet these requirement will be further hampered in October when, after CP134, the FSA publishes rules requiring providers to include point-of-sale illustrations for new business projections in key features documents using the same real-time valuations as those for SMPI.

Product providers say these rules will be too late for incorporation by April 2003 and want the FSA to delay them until 2004.

In its response to CP134, the ABI has called for the establishment of an independent body responsible for setting the method and presentation of all pension projections, made up of representatives of the DWP, FSA, the Faculty and Institute of Actuaries and the Government Actuary&#39s Department.

Crawford says: “There is a big risk of providers missing this deadline. N2 has created a lot of consultations and this review is not hitting the priority list.”

FSA spokeswoman Kate Bristow says: “We will make our response to the ABI&#39s proposals and say whether implementation will be put back when we publish a policy statement in the autumn.”

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(Another) downhill stroll — retirement planning

A report published this morning by the CIPD (CIPD Employee Outlook March 2015) provides yet more interesting data to the changing landscape of retirement planning. It should be remembered that we are in a period of genuine flux here given that the default retirement age was scrapped three years ago, and new pension freedoms come online in April. Both of these alterations will have a huge impact on how employees plan for their retirement.

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