Pension body addresses lump sum concerns

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.

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