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Budget Announcement

The Budget announcement on the 19 March 2014 commenced a consultation on Freedom and Choice in Pensions.

The consultation sets out greater flexibility around the funds under a Defined Contribution pension when the individual concerned wishes to retire. Currently  for these type of schemes legislation requires the member to invest in an annuity to purchase a pension going forward from retirement. The proposed greater flexibility applies to Defined Contribution schemes only. The consultation proposes a restriction on the ability of Defined Benefit  public service pension schemes (which includes the Police schemes in Scotland)  to transfer their benefits to Defined Contribution schemes.

The consultation is also considering increasing to age 57 from 2028 the national minimum pension age which reflects the minimum age a pension can be taken for tax purposes. The current national minimum pension age is 55.

The consultation runs until June 2014. You can find further details at: https://www.gov.uk/government/consultations/freedom-and-choice-in-pensions

Link to Scottish Government Website