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The Coalition Government has made a number of announcements regarding Pensions Reform.

- The DWP has been tasked to carry out an urgent review into the reforms expected in 2012. This includes making auto-enrolment to pension arrangements compulsory, either to qualifying workplace pension schemes or the previous Government's default scheme, NEST (National Employment Savings Trust).

We don't anticipate auto-enrolment will be cancelled, however, there have been suggestions that the qualifying rules for lower paid employees may well be amended and there is concern over the costs of NEST which will be run by TATA in India.

Current employer-sponsored pension schemes must ensure that they are considered to be 'qualifying', or employers will have two pension arrangements to administer each month - their existing pension scheme plus NEST.

- Steve Webb, the Pensions Minister, has proposed that transfers from Contracted Out Defined Benefit pension schemes to Defined Contribution schemes (including personal pensions) should be stopped from April 2012.

This is part of the proposal by the Government to end contracting out from the State Second Pension (S2P) for all defined contribution and personal pension schemes from 2012.

This will lead to a restriction of choice for those who may wish to transfer their benefits from a previous employer's pension scheme after April 2012. For example, deferred members may wish to provide a higher widows(ers) pension after their death than that provided by the scheme. Furthermore, transfers may be appropriate where the employer is in financial trouble and higher paid employees may prefer to use the income drawdown route to provide an income in retirement rather than a scheme pension.

- The age at which accumulated pension funds had to be used to provide benefits was set at 75 in the 1950s. This is up for review and, as an interim measure, in the Emergency Budget was put back to age 77 although tax free cash must still be taken by age 75. You no longer have to buy an annuity and there are a number of different options to suit most circumstances.

- On death after age 77 any pension fund passing to anyone other than a spouse is subject to a cocktail of Gordon Brown's taxes amounting to 82% which is clearly ridiculous and should change. Some form of tax on transfers of pension funds to another person is inevitable but a rate more akin to Inheritance Tax @ 40% would seem to be fairer, and would be good for both The Treasury and Savers alike.

If you have any queries or would like to discuss any of the above please do not hesitate to contact me.