This “brazen push towards consolidation” is alright by me.

Q.Why is the Pensions Regulator not treating small DC schemes as larger workplace pensions?

A. It’s because most of these schemes are small self-administered pension schemes which are used to shelter business assets from wealth taxes. They’re not workplace pensions, they’re tax shelters

Q. Why is the Pensions Regulator looking to slap a £10,000 pa charge on these schemes?

A. Because the Pensions Regulator does not have the resource to police these schemes and – in the absence of a self-regulating body, is losing money doing so. It wants small schemes to consolidate to big schemes

Q. Why is TPR looking to give these schemes till 2026 before imposing the charge?

A. To give these schemes time to sell illiquid assets and wind up in an orderly way

Q, Is this all about Small Self Administered Pension Schemes?

A. No , it’s about small pension schemes full stop. If you have less than 10,000 members you are thought small. SSAS schemes are getting more attention because they have noisy advisers. Many small occupational DC and DB schemes used to provide workplace pensions will have the same problems.

Q. Why are advisers so upset?

The wind up of the SSAS will pose an existential threat to the adviser’s SSAS fees. Most small DC schemes are unadvised , most small DB schemes are too punch drunk to care.

Q. Isn’t this unfair to the client?

A. Small businesses that have small occupational pension schemes are running regulatory risk. The warning signs have been in place for a decade – the risk was advertised – small occupational pension schemes have chosen to ignore it.

Q. But will the scheme suffer loss?

A. Yes, it will have to pay £10,000 a year more or wind up – it will have to consider whether the regulatory cost is worth it

Q. Is this a brazen push towards consolidation?

A. Yes.

Q. Do I think it will work?

A Yes.

About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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1 Response to This “brazen push towards consolidation” is alright by me.

  1. Allan Martin says:

    For DC, arguable, for DB, scandalous.

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