The Government through the Department for Work and Pensions has launched a consultation into the treatment of bridging pensions by the Pension Protection Fund (PPF), which can be found here.
David Weeks as Co-chair of AMNT has taken part in a focus group to explore the impact of the Government’s proposed approach to amend legislation to allow the PPF to actuarially convert a member’s bridging pension into a flat-rate lifetime equivalent amount (known as ‘smoothing’). The proposed changes would apply to individuals who are in receipt of the high rate of their bridging pension when their scheme enters a PPF assessment in future.
We would be keen to hear the trustees’s views, specifically on whether the option of smoothing is appropriate and whether there would be any unintended consequences for members. Please email the AMNT team. The consultation questions are here