HMRC's NISPI division on Tyneside has published Pensions Industry Newsletter 36 (April 2009), aimed at scheme administrators and practitioners at the coal face of contracting-out administration. This issue contains a newly-updated Organisation Chart and list of contact details following an internal reorganisation last month (this has not affected the Scheme Cessation unit). A substantial section is devoted to the impact of new legislation and the relevant CA Forms, plus an update on the correct use of other Forms.

The Newsletter also draws attention to TPR's guidance on record-keeping (see Aries article) and publicises its free Payroll Cleanse Service, now covering pension as well as employer payrolls. A slight drawback is that submissions containing more than 64,000 records will need to be split into two or more files. The new Secure Electronic Transfer service, already trialled at Standard Life and two other providers, is now available to facilitate the regular transfer of bulk data to and from HMRC.

Scheme administrators are alerted to notify NISPI on receipt of any Age Related Rebate (ARR) payments in respect of tax years outside the period of membership. It could indicate that NISPI has not received the appropriate transfer/cancellation notice from the transferring scheme. The first of two ARR reconciliation exercises for tax year 2007/08 is now well under way and any payments and recoveries identified will be made on 1 June; the second exercise will be in October/November 2009.

Meanwhile HMRC Pension Schemes Services in Nottingham have issued Pension Schemes Newsletter 37. As well as links to the key 2009 Budget documents in connection with pension savings, this explains in detail three recent announcements of interest to SIPP and SSAS administrators (see also Aries article). Other matters include a reference to updated guidance on in specie transfers (RPSM 051.02.035) and confirmation that protection of a low pension age will be lost on transfer - resulting in an unauthorised payment if benefits are paid before normal minimum pension age - unless it is a block transfer. This applies equally to transfers of crystallised benefits, including USP, and uncrystallised rights.

Anti-forestalling

Undoubtedly for the pensions industry the most salient Budget proposal this year was the immediate introduction of anti-forestalling legislation in Schedule 35 of the 2009 Finance Bill, to apply from 22 April 2009. In essence, a 20% special annual allowance charge will be payable in tax years 2009/10 and 2010/11 by individuals with a total annual income over £150,000, on any excess of the total adjusted pension input amount over £20,000. This is reckoned on a similar basis to the pension input amount for annual allowance purposes, although on a tax year basis rather than pension input year. Some high earners will escape this charge, in particular those who can demonstrate a historic pattern of contributions which is continuing.

HMRC is currently consulting industry bodies on how this will work. As usual, attention is focussing on the transitional arrangements. There is urgency about this, not only because the Bill is already under detailed examination at the Committee stage in the House of Commons, but also because the provisions have an immediate effect on pension contributions for the current tax year.