The following is a summary of future reforms to occupational and personal
pensions (including stakeholder
pensions).
Abolition of 'contracting out' for defined contribution
schemes
Contracting out for defined
contribution schemes will be
abolished. Contracting-out certificates for these schemes will
be automatically cancelled. The result will be that members
of money purchase schemes will be automatically contracted back in
to the S2P from the date of cancellation. This is likely to
become effective from 2012.
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Reduction of Lifetime Allowance
From 6 April 2012, the Lifetime Allowance is reducing from
£1.8m to £1.5m. There will be special arrangements for
those who may exceed the allowance but do not have Primary or
Enhanced Protection. Further information will appear here in
due course.
