Pensions Question

[Al R]

Rather than start another pensions thread.

The Finance Bill 2011 finally received Royal Ascent yesterday (at 1435 if you're interested) with several negative effects on pensions, so it is now an act of Parliament. At present, it would appear that there were no last minute amendments to the proposals.

Annual pension contributions of over £50,000 may be subject to tax charges (Annual Allowance) and lifetime benefits from pensions of over £1.5m may be subject to tax charges I (this could affect anyone with a likely AFPS income in retirement of over £70,00 or so). It may be prudent to arrange for 'Fixed Protection' with HMRC, particularly if your notional pension 'pot' is likely to breach the new £1.5m limit.

This recent article from The Telegraph summarises most of the messages surrounding the changes and the subsequent challenges to many public sector final salary schemes, some of which apply to AFPS. Those at the higher echelon of the rank structure, or planning to be, might want to think about their retirement planning and how AFPS fits in with it, and how it will fit in with AFPS. The pensions picture has changed, and it will continue to do so.

Doctors quit gold-plated pensions - Telegraph