April: all change

by | Apr 15, 2024 | Pension History

April is a significant month in pensions administration. Some scheme rules specify an April to April scheme year for the purpose of calculating pensionable or final pensionable pay or pension increases. Other schemes have used April as a cut-off date each year for admitting new members or making changes to membership categories.

And of course all schemes are used to implementing legislative and tax changes in April. The Pensions Act 1995 for example, arguably the biggest change to occupational pensions administration in this country, came into force in April 1997.  Or think of the administrative complexities of saying goodbye to contracting out after 38 years in April 2016, the abolition of the Lifetime Allowance in April 2024 or the prospective increase in the normal minimum pension age due in April 2028.

April is also pensions increase month for State and public sector pensions. The State pension is due to increase this April by 8.5%, and public sector pensions by 6.7 % (proportionately less for pensions in payment for under a year) necessitating pages of guidance and explanation.

Efficient administration to cope with changes like these is obviously key – but historical records show that good record keeping has always been essential. The London Metropolitan Archives’ collection includes 23 volumes of pension records, starting in 1893 for employees of Billingsgate fish market, giving name, position, wage, weekly contribution and monthly totals for each employee. And all without computers…..

Pensions Archive Trust Director, Jane Marshall

https://pensionsarchive.org.uk/our-collections/

This article was first published in the April 2024 edition of Pensions Age magazine.