Sixty second summary
The ‘Generation Game’ challenge of LGPS administration annual tax activities
03 Aug 2021
Despite pensions being known as a ‘long-term’ industry, we are all aware that LGPS administration moves at breakneck speed in the short term. With year-end exercises concluded, or nearing conclusion, your thoughts will no doubt be turning to production and distribution of your annual benefit statements. Once they are out the door, the 2020/21 annual Pension Savings Statements exercise will immediately follow. And let’s not forget the everyday, business-as-usual tasks you must complete, as well as additional projects like McCloud. With so much to attend to, the never-ending conveyor belt of priorities can feel very much like the ‘prizes’ during an episode of the Generation Game – lots to do and lots to remember… just no cuddly toy!
Our sixty second summary looks at The Pension Savings Statement challenge and how we can help you in navigating the 2020/21 annual allowance exercise.
In the last 5 years the complexities of the annual allowance have proven to exceed even the most patient and knowledgeable among us:
- The technical nature of pension tax provisions;
- The increased numbers of scheme members being caught by the annual allowance as a result of the threshold remaining unchanged for many years;
- The bespoke tax demands placed on administration teams from scheme members;
- The resource that can be taken from (usually) senior members of the team in dealing with technical queries;
- Additionally, we know that loss of key staff and difficulty recruiting replacements can also impact on the ability to deliver technical projects.
We have been supporting Funds over many years in managing their annual allowance exercises. We offer a range of support, enabling you to meet your annual allowance responsibilities, while you continue to focus on delivery of business-as-usual activities:
- Undertake individual assessments;
- Incorporate the impact of the lifetime allowance;
- Provide interactive tax seminars to higher earners and others who may be interested;
- Provide interactive training to your administration team; and
- Facilitate one-to-one sessions.
To find out more about how we can help you naviagate these challenges, get in touch with your usual consultant, or contact Peter Riedel or Ian Colvin for further information.
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