A better deal on divorce

Article Abstract:

The UK government plans to change the law to permit a partner's pension fund to be divided between the two partners on divorce. Women are most likely to benefit since they are more likely to lose pension assets following a divorce. UK pension law creates problems when couples divorce, and women are left with no pension if an ex-husband dies before retiring. The new rules will allow a partner to receive a pension payment to set up a fund. This could push up government spending due to the demands to be made on public sector pension schemes.

Economic aspects, Divorce

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Difficult waters

Article Abstract:

Income drawdown arrangements were allowed for occupational money purchase pension schemes from 1996 by the United Kingdom Inland Revenue. This applies to different schemes such as Section 32 buy out plans, AVC schemes from employers and FSACs. The aim of drawdown schemes if to allow annuity purchases to be deferred. There may be more restrictions for occupational schemes since the legislation is complex and there are tests on retirement for possible breaches in limits set by the Inland Revenue.

Annuities

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Insurers contract out of responsibility

Article Abstract:

UK insurers have not been forced to compensate customers for bad advice on moving into a personal pension scheme and leaving the state earnings related pension scheme (Serps). Most investors who made this move have benefited, but some people on low incomes with interruptions in their salaries would have been better off staying in the state scheme. This could affect some 240,000 policyholders, and flat rate charges are especially likely to cause problems for investors on low incomes.

Insurance industry

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