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Pickering may call for three types of pension

Alan Pickering&#39s long-awaited recommendations for simplifying pensions, due out this week, are likely to call for the setting up of three types of pensions.

But the full ramifications of his proposals will not bec-ome clear until the Inland Revenue tax simplification review is published in September.

Pickering has said his and the Revenue&#39s work are “two parts of the same package” and sources close to the report say some of the recommendations out this week will be left up in the air while the Revenue&#39s plans are still kept under wraps.

The three pension schemes Pickering is likely to put forward are a single defined-benefit regime, a Catmarked def-ined-contribution regime and a non-Catmarked DC regime.

A move to reintroduce pensions as a condition of employment is expected but where the arrangement is a GPP or stakeholder, employees are likely to be given the option to opt out.

Opra is set to come under fire from the review, with Pickering suggesting the adoption of a more approachable and flexible regulator that can provide advice to providers.

Scottish Life head of pension strategy Steve Bee says: “Compulsion and incentives are last-resort measures. The real work on simplification is being done by the Revenue. But we have to make sure people get the best of all their rights and no one loses out.”


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Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


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