Pension body addresses lump sum concerns
Reassurances are being sought from the government that future pension policy will not mean the end of tax-free lump sums.
Link: Pensions and FRS 17
Following growing concerns that the lump sum pension is about to be scrapped in upcoming reforms, National Association of Pension Funds chairman Peter Thompson has written to the Treasury Financial Secretary Ruth Kelly hoping to confirm that this will not be the case.
The government is soon to publish a green paper that will outline future pension policy in the UK.
It has been suggested that the possible scrapping of the tax-free lump sum pension, which offers recipients an amount equivalent to one and a half times their final salary on payment, could discourage people from paying into a pension fund.