The June 2010 budget

22/06/2010

Some key points…

Auto-enrolment

In today’s budget the government reiterated its support for auto-enrolment. It has committed to reviewing private
pension reforms and will be announcing details of that review shortly.
In the meantime, in Workplace Savings we will continue to review our pension products to ensure they can be used as
qualifying schemes.
Once the details of the government’s review are announced, we’ll provide you with more details. However, whatever the
outcome, we are completely committed to working with you to ensure you can meet your new obligations.
In the meantime, if you’d like more information about the reforms, please visit The Pensions Advisory Service

Tax relief for high-earners

The previous government introduced legislation restricting the tax-relief given on pension contributions to those earning
over £130,000. The new government has indicated that these rules could be simplified whilst at the same time
maintaining the same level of tax revenue. As a result, it is considering reversing the rules around high-earners and
instead introducing a reduced annual allowance, potentially between £30,000 and £45,000. The details of this measure
are still being analysed by the Treasury and we’ll provide more information as the details become clear.

Annuities

The existing rules that create an effective obligation to purchase an annuity by age 75 are likely to end in April 2011.
The government will launch a consultation on the detail of this change shortly. It also plans to introduce legislation for
transitional arrangements for those yet to secure an income who will reach the age of 75 before April 2011.