Family pension schemes ?

The new pension rules coming in to force on 6/4/6 seem to allow the remaining fund to be passed on to other scheme members upon death as long as the person drawing the pension had opted for the ASP option beyond 75.

I've heard that companies are looking into providing family pension schemes as a result.

"4.5 Death Benefits

- If pension benefits are being provided using ASP, any funds remaining on death after age 75 must be used to provide dependants? pensions. Where there are no dependants, the scheme may; reallocate the surplus funds to other scheme members, refund it to a sponsoring employer net of 35% tax or pay to a registered charity."

"4.3 Secured Income

- Alternatively secured pension (ASP), an extension to income withdrawal beyond age 75. The "security" is achieved by reducing the maximum income that can be taken to 70% of the FSA single life annuity rate for a 75 year old. Minimum income is zero. Maximum income is reviewed annually."

Daytona

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Daytona
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