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new year, old deadline

4 January 2011

A gentle reminder that the new year also brings with it the end of transitional protection afforded to pension schemes following on from the ‘A-Day changes’ with effect on and from 6 April 2011.

Substantial changes were introduced on 6 April 2006 to the pension scheme arena – these are referred to as ‘A-Day changes’. Regulations were introduced setting out transitional protection for pension schemes so that the pre A-Day limits could continue to be utilised post A-Day without amending the pension scheme’s trust deed and rules.

The time is fast running out for pension schemes to continue to rely on the transitional protections. As at 6 April 2011 the transitional protection will lapse. Therefore, where the pension scheme has continued to rely on the transitional protection contained in the regulations, trustees and employers should act now to avoid any undesired effects resulting from the transitional protection ceasing to apply; for example an increase in scheme liabilities.

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