Enhance: Construction Pension Scene, Northern Ireland

Enhance

Retirement

Legislative Changes

All Change for Pensions from April 2015 

There are a number of legislative changes regarding pensions which took effect from April 2015. Key points are as follows:

1. Removal of Requirement to Purchase an Annual Pension

Members of defined contribution schemes, such as Enhance, have more flexible access to their pension funds from 6 April 2015. Members from age 55 are no longer required to buy an annual pension (annuity) and can take their fund as a lump sum as follows:

• 25% is tax free • 75% is subject to tax

Annual pensions are still available.

Further details are available in the Retirement Benefits section of the Scheme Booklet.

2. Guidance Guarantee

Members will be offered ‘free and impartial' web based guidance via Pension Wise. The Pensions Advisory Service (TPAS) will provide telephone guidance while the Citizens Advice Bureau will provide face-to-face guidance within their branches.

3. Charge Cap On Default Funds

A charge cap of 0.75% will apply to default funds in defined contribution schemes.

What are the implications for Enhance – Construction Pension Scheme?

These changes have implications for the Scheme’s default Lifestyle investment strategy which is decided by Enhance Trustee Limited based on professional investment advice and is designed to be appropriate for the majority of scheme members. In light of the changes, Enhance Trustee Limited revised the default strategy in February 2015.

Members of Enhance – Construction Pension Scheme were informed of the changes in January 2015 as follows:

- Member Communication Letter

- Budget Changes Communication Document

For more information on the Lifestyle Investment Strategy see How Your Money is Invested.