Client feedback


PSGS was chosen because of their knowledge of the subject and awareness of our particular schemes.
George Batho ,
Trustee, Lansing Linde
So much more proactive than the previous company. On the ball - thinking in advance of things needing doing - very proactive.
Paul Rudd ,
Chairman of Trustees, Express Newspaper
Ann and her team are very knowledgeable and proactive, liaise well with our other advisers and provide the Trustees with an invaluable secretarial service.
Ian Edwards,
Chair of Trustees, Comet
Fiona brings perspective from other schemes and therefore a wider knowledge.
We chose PSGS because of the experience of the team and the feel of the relationship seemed the right fit.
Paul Staniland,
Chair of Governance Committee, Kier Group Pension Trustees
It’s a pleasure working with key members of the PSGS team: their experience and leadership means that they know how to get the job done, working in partnership with fellow trustees, employers and advisers to achieve the best result for members.
Mark Smith,
Partner at Taylor Wessing

Two certain things in life…taxes and death

With all the excitement (or some may say distraction) of the build up to the EU referendum and the reaction to the actual result, plus the important things like your summer holidays, the odd thing may have slipped under your radar. One such thing is the change to death benefits being paid from registered pension schemes outside the two year period following a member’s death.

Review your death cases

Trustees need to review all outstanding death cases, being mindful of the two year rule, and continue to monitor (with help from their administrators) the two year deadline going forward. Previously, if death benefits were paid outside this period, they were treated as an unauthorised payment and taxed accordingly. They are now (since 6 April 2016) treated as authorised payments, taxed as income at the marginal rate of the beneficiary.

Complex families = complex discretion cases

As you might expect, as independent pension trustees we have exercised trustee discretion over the years on sadly a great many number of death cases. Over time, there has been a steady increase in the number of cases where the deceased’s family circumstances have been rather complex.

  • Family and household structures have changed significantly over the past 50 years and this looks set to continue.
  • Marriage is in decline and cohabiting on the up.
  • Over one in three of all marriages are now remarriages - stepfamilies are the fastest growing family forms in Britain, accounting for one in ten of all families.
  • The number of single-parent families is also growing.

What does it all mean? Well, quite simply, it means death cases are taking longer for pension trustees to resolve. This can appear unhelpful at a particularly sensitive time for the families concerned, but the possibility of additional tax charges means there could be a financial impact too.

Encourage members to help you help their family

In complex cases, pension trustees may find themselves spending so much time figuring out a member’s family situation that meeting the two year deadline may be at risk. Whenever they communicate with members, pension trustees should highlight the importance of completing an expression of wish form - and reviewing/updating it when personal circumstances change.

Clear communication to families is also needed so they are aware at the beginning of the process what the possible tax implications are if the two year period expires. As well as avoiding a nasty surprise down the road, it will also encourage them to assist the trustees when information, evidence or documentation is requested.

 

 

Back to opinions

 

Hot topics


PSGS & 20-20 Trustees merge to form Vidett
Hot Topic

Punter Southall Governance Services (PSGS) & 20-20 Trustees (20-20) have today announced they...

Read more »


Don’t be surprised that your gilt funds are being treated like an emerging market
Image of Hot Topic author Sophia Harrison, Client Director

You may have seen or heard about the article in the Financial Times about how Insight...

Read more »


More opinions »


Call: 0118 207 2900

online enquiry