View more on these topics

Concern at admin chaos over flood of transfers

The ABI is negotiating with the Inland Revenue to halt the predicted flood of transfers to stakehol-der from pension top-up plans after the Government&#39s acceptance of par-tial concurrency.

The ABI is worried this scenario will create an admin nightmare for life offices.

It fears the tax-free cash benefit available from a stakeholder held concurrently with an occupational pension will lead to a rush of savers abandoning their free-standing additional voluntary contributions and additional voluntary contributions.

When the Government announced its plans to allow individuals to contribute to an occupational pension alongside a stakeholder this summer, it prompted predictions of the demise of the pension top-up market.

Many thought savers would be lured by the 25 per cent tax-free lump sum under stakeholder, a benefit not offered by either FSAVCs or AVCs.

ABI spokesman Malcolm Tarling says: “The disparity between the amount of tax-free cash under a stakeholder and that under AVCs and FSAVC has led us to look for scope to equalise the benefits.

“In theory, there could be a lot of people rushing to transfer which would cause an admin nightmare for life offices.”

Recommended

Charge cap does not fit IPAs

It is time for a rethink as IPAs run the risk of missing the stakeholder bus. During July, the Treasury introduced the concept of IPAs and announced plans to launch this new product in time for stakeholder pensions in April 2001.The announcement also suggested IPAs would be particularly suitable for stakeholder pensions. Given the closeness […]

Midshires moves into commercial lending

Birmingham Midshires is setting up a commercial lending operation targeting the business-to-business market in a bid to set itself apart from its parent company.The Halifax-owned business aims to quadruple its commercial assets to £2bn from just over £500m within five years.Midshires says this move will make it the sole provider of commercial loans which is […]

Be a part of the revolution

Stakeholder is set to revolutionise pensions. Everyone will save and everyone will contribute to a group scheme which leaves very little room for IFAs to earn a living – and big brother will be watch-ing you.But, as with big brother, there will always be those who do not fit into the Government-prescribed mould and those […]

Scottish Amicable Mortgage Protection – 8th September 2000

Type: Level or decreasing term assurance offering single or joint cover. Accident, sickness & unemployment cover and critical illness options available.Minimum premium: £5 a month, £50 a year.Minimum-maximum terms: 5-40 years.Charges: Policy fee £2.50 a month.Commission: Subject to negotiation.Contact: www.scotam-adviser.co.uk

Recording sickness absence cover - thumbnail

White paper — recording sickness absence

The latest figures from the Department for Work and Pensions illustrate that sickness absence is still a major cost to businesses, with an annual bill for sick pay and associated costs to employers of £9bn. This paper from Jelf Employee Benefits looks at the importance of recording sickness absence for any employee health strategy and how this can be carried out in an efficient manner to reduce absence, improve employee engagement and drive up profits.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment