Revenue Limits: the end is nigh! (Again....)

In a nutshell
Any occupational pension scheme which has not yet adopted its own scheme-specific benefit limits remains subject to the pre-2006 regime of ‘Revenue Limits’ which was extended on a temporary basis by Government shortly before A-Day.

That transitional regime will, however, fall away for good in April 2011, and any scheme which by then has still not implemented its own benefit limits will face a (potentially dramatic) increase in its – and accordingly its employer’s – liabilities.

The next two years are likely to pass in a blink, particularly as the introduction of Personal Accounts grows ever-nearer; and employers whose schemes are still subject to the old Revenue Limits regime due to the operation of the Government’s transitional regime should start taking action now, to decide upon (then design and implement) their own maximum benefit limits well in advance of April 2011.

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Update supplied by Charles Russell LLP - www.charlesrussell.co.uk