Income Drawdown

The gross yield for calculating the maximum GAD rates for October 2006 is 4.25%.

Changes to Protected Rights?

The government is proposing to remove the restrictions surrounding protected rights in defined contribution schemes.In a consultation, which closes on 13 October, the Department for Work and Pensions (DWP) says as part of the work to deregulate pensions simplification of the requirements surrounding protected rights would “provide a substantial contribution”.

At the moment, protected rights are kept separate from normal pension rights, and the government says the restrictions “have been a source of complexity for schemes and members” resulting in additional administrative costs and less choice for the member.