This SPP report acknowledges the rationale for reducing pensions tax relief to make savings for the Treasury; highlights that the true cost of pensions tax relief is considerably smaller than headline figures; details some of the consequences of shifting to a single rate of pensions tax relief; and examines various alternatives.
This SPP response explains that the PPF continues to levy £100m annually from the pensions industry which it readily admits it does not expect to ever need given it has a multi-billion pound surplus. Existing legislation prevents any future increases beyond 25% but the levy could be immediately reduced to zero whilst legislative change is sought (either now or in the future).
The SPP supports many of the proposals being put forward within this consultation and the overarching objective of improving Value for Money but is concerned about the volume of data that the proposed framework will require providers to collect and communicate, which in some cases appears disproportionate. There are many improvements that could be made to these proposals, as we have sought to constructively explain in this response.
This thought provoking SPP paper provides a detailed analysis of the challenges in ensuring UK pension schemes invest more in their domestic market, whilst also exploring a range of options as to how these challenges might best be overcome.
Amongst other productive finance issues, this response highlights that the SPP agrees that scale can deliver improved investment but that there are risks, which must be guarded against; that legislative change is necessary to better facilitate consolidation and that for the LGPS, asset pooling has been successful but there is more to do. Read on for further information...