14 December 2018
The Act deals with some anomalies arising in private pension schemes caused by the increase in the State pension age from age 65 (currently) to age 66 (from 1 January 2014), age 67 (from 1 January 2021) and age 68 (from 1 January 2028). Section 18 of the Act inserts a new section 59H in the Pensions Act 1990 (as amended), which provides that:
Both of these provisions are essential to avoid a situation where schemes have unforeseen and unfunded liabilities. Trustees and plan sponsors will need to take advice in relation to whether section 59H is sufficient to be relied upon in practice.