Just before Christmas HMRC issued Pensions Simplification Newsletter No. 8, covering the following issues:

1. Protection:

• further clarification of the statement in Newsletter No. 4 that any post-A Day contributions made by or in respect of an individual with an 'other' money purchase arrangement (ie a money purchase arrangement that is not a cash balance arrangement), including contributions for life cover whether funded within the arrangement or by an insurance policy, will invalidate enhanced protection. Such contributions will comprise 'relevant benefit accrual' under FA 2004 Sch 36 para 13.
• emphasis that registering for protection is not a claim or an application, but involves completing and submitting the relevant forms (to be available from the HMRC website in early March and submittable from A-Day, although not online until Autumn 06, say latest PIWG Minutes (see below)). A draft version [PDF] is available now.
• HMRC will then issue a certificate with a unique reference number and details of the individual's entitlement to protection. When there is a benefit crystallisation event (BCE) and the individual needs to rely on a certificate to reduce or eliminate liability to a lifetime allowance charge, they must provide the relevant details to the Scheme Administrator. Scheme Administrators will be able to check the details with HMRC if the individual authorises them to do so.
• an interesting statement that "those who are currently promised more than a 25% lump sum will automatically receive protection". We had previously understood that preservation of this right was dependent upon trustees recording the member's A-Day TFC entitlement.

2. Pension Schemes Online Update:

• following the announcement on 11 November that online filing would not be fully operational by A-Day, a list is now provided of what will actually be available online on 6 April.
• instead of an SF reference number, under the new regime registered pension schemes will have a Pension Scheme Tax Reference (PSTR), to be quoted whenever filing a report or return. PSTRs will comprise eight numbers (probably like the RPSM references, without reader-friendly spacers) followed by an 'R' and a check character.
• a reminder about the advantages of pre-registering Scheme Administrators, preferably before 31 January.

3. Regulations:

So far over 60 draft SIs have been published under FA 2004, with 11 having been formally laid on 16 December. Some are to be consolidated into a single transitional order, however, so that the final total is expected to be just over 40.

4. Pensions Industry Working Group:

Minutes of the latest meeting, on 22 November 2005, are now available. This confirms HMRC's plan for publishing the RPSM, viz that once the technical pages are complete (which they now are - see below), the missing chapters of employer, administrator and member pages will be completed. HMRC will then turn its attention to amendments, including correction of errors. The next PIWG meeting is scheduled for 17 January 2006.

Registered Pension Schemes Manual (RPSM)

The final chapter, Ch 12 Information and Administration, is now available, both on the web as html pages and as a 243k .pdf download. Note that although the pdf page states that only the technical pages are offered in this format, for this Chapter the member, scheme administrator and employer pages are included in the same file as the (very short) technical pages section. It is unclear whether HMRC intends to go on to provide .pdf versions of these pages for all other chapters too.

Although technical pages of all RPSM Chapters are now on the web, publication in pdf format of Chapter 7 (Investments) is still awaited.

Other guidance

Meanwhile, HMRC has set up a frequently-asked questions (FAQs) page. Nine questions are covered for starters.

Slides and speaking notes for the 'Preparing for A-Day' workshops last September/October are also now available, as a 1.2Mb .pdf download.

Finally, three "Simplification factsheets", aimed respectively at individuals, individuals with international interests, and employers were published on 19 December, also in .pdf format.

Draft Regulations

Since we last reported (16 December), five more draft SIs have appeared on the draft regs page:

1. The Pension Schemes (Part 4 of the Finance Act 2004 Transitional [and Transitory] Provisions Order 2004
- another element in what will eventually be laid as a composite Transitional Provisions Order. This one provides transitional protection to contributions made by employers where those contributions qualified for corresponding relief under FA 1989 ss. 76 (6A) and (6C).

2. The Pension Schemes (Surrender of Relevant Excess) Regulations 2006
- deal with the situation described in FA 2004 Sch 36 para 12 (5), whereby an individual is prevented from giving notice of intention to rely on enhanced protection because of overfunding, unless the "relevant excess" has been surrendered. These regs specify the rights that are to be treated as representing the relevant excess.

3. The Finance Act 2004, Part 4 (Pension Schemes - Transitional and Transitory Provisions and Savings: Pipeline Lump Sums) Order 2006
- a variation on the wording of yet another component of the eventual Transitional Provisions Order. This Order prescribes circumstances in which a lump sum to which the member became entitled before A-Day may be paid within a specified period after A-Day and still be treated as having been paid under the pre-A Day regime.

4. The Registered Payments (Authorised Member Payments) Regulations 2006
- exempt 'pipeline lump sum' payments (as defined in the preceding Order) from the unauthorised payments surcharge.