Pensions - Articles - Millions of savers will not now receive pension statements


Following the news that millions of savers will not now receive statements to help them check that their state pensions are correct, read below comments from leading pensions lawyer Anna Rogers, Senior Partner at ARC Pensions Law.

 "HMRC were going to tell everyone who had been, according to their records, contracted out of state pensions between 1978-1997 that their state pension would be reduced, and where the corresponding replacement pension was going to come from.

 This all sounds fine in theory. However, after 'reconciling' HMRC records with private sector pension schemes’ records, we find that it is unclear what happened to many people. If HMRC simply tells the affected person that their state pension is reduced and advise them to seek recompense from a named scheme, it is likely to cause a flurry of complaints against the schemes, which will be in some cases unfounded.

 It doesn’t seem fair for HMRC to take on the mantle of, in effect, a power to rule on what happened, when their own records are in just as much of a muddle. The problem is that we are talking about paperwork that may or may not have been properly completed, whether at the scheme administrators’ end or the tax authorities, some 20 to 40 years ago.

 It seems a wise move for HMRC to leave it for now, rather than go poking the hornets’ nest. If HMRC is able to complete the process of reconciliation by Summer 2018, as has been planned, many cases may be resolved in the final stages of the game, which involves matching up members who changed jobs with schemes they may or may not have transferred to. People involved with the process in the administration sector are starting to think that the deadline will have to be extended beyond Summer 2018 and more resources be made available in HMRC."
  

Back to Index


Similar News to this Story

4 ways completing a tax return can help boost your pension
Missing the Self-Assessment deadline not only risks a penalty for late filing but could cost individuals hundreds, if not thousands of pounds in uncla
DWP holds AE thresholds with GBP90bn of pensions expected
The DWP has issued its review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2025/26, retaining all three thresholds at
Response to Triple Lock means testing comments
Aegon has called for ‘a future focused debate on a sustainable state pension’ following comments on the Triple Lock by Conservative leader Kemi Badeno

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.