The Association of British Insurers is lobbying HM Revenue and Customs and the Treasury to extend the deadline for pipeline pension term assurance business to be processed.
It is advising product providers to delay telling their clients that their applications have not met the April 6 deadline cut-off. In a circular last week seen by Money Marketing, the ABI said it was aware that “significant volumes” of PTA cases have still not been processed due to insurers awaiting final details, such as medical evidence.
In the circular, ABI assistant director of financial regulations & taxation Sarah Knight says: “HMRC and the Treasury understand that individuals already in the pipeline who have not yet had their applications processed may be at a disadvantage so are currently considering our representations on this issue.
“With Easter looming, it is unlikely that they will be able to issue any statement on this issue by April 5. Our view is therefore that you may want to delay informing clients that their applications have not met the April 6 deadline.”
One source believes that the number of PTA cases still trapped in the pipeline is around 10,000 while other commentators say this could be a conservative estimate.
ABI spokesman Jon French says: “We are in continual discussions with the Treasury and HMRC about a number of detailed issues surrounding pension term assurance. We have not yet received any response on these to my knowledge.”
Scottish Widows protection marketing manager Nick Kirwan says: “There are still quite a lot of people who are caught in the pipeline where the doctors have not sent medical information back to the company but the customer is still in need of cover so any extension to the deadline would be welcome.”