Bridging Pensions And State Pension Age: Power To Modify Scheme Rules
Regulations have been laid enabling trustees to modify schemes by resolution, with employer consent, to bring bridging pensions in line with changing state pension ages (or fix them at a specified age). They come into force on 1 October 2013.
The provisions apply where, as at 5 April 2010, a scheme permitted a reduction in pension either on reaching a specified age between 60 and 65 or at state pension age.
Click here for the regulations.
Where the scheme currently provides for reduction at a specified age, trustees may modify the scheme to provide for a reduction "of an equal or differing amount" to take effect at any time between age 60 and state pension age.
Where the scheme currently provides for reduction at state pension age, trustees may modify the scheme to provide for a reduction "of an equal or differing amount" to take effect at any time between age 60 and 65. Modifications made under this provision must not affect pensions in payment at the date of modification.
The explanatory notes to the regulations state that...
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