What lies ahead for advisers when the Pensions Bill comes into force

pensions

Stewart Ritchie, pensions development director at Scottish Equitable, sets out what the Pensions Bill, scheduled to come into force in April 2005, will mean for the different groups involved with pensions

Nobody knows whether there will be a run on the PPF when it starts next April, though the rumour mill is working overtime. The Government says it will not underwrite the PPF, yet the Pensions Minister said repeatedly in the Commons that the PPF benefits are guaranteed. Even if the PPF works perfectly it will not replace the full benefit promise for members. People younger than normal pension age are to get 90%, probably with a maximum of £25,000 a year. Retired people will only get partial inflation proofing. Many think even that is too much, because it will be paid for by other defined...