Changes to the law on bridging pensionsMonday, June 11, 2012
It was announced in the Budget that the tax law relating to bridging pensions will change to reflect the increase in the state pension age.
Bridging pensions are paid by some schemes between a member’s retirement date and the time they reach state pension age to supplement retirement income before the state pension is payable. Under current rules, bridging pensions must stop by age 65.
Pensions minister, Steve Webb, has announced the introduction of a limited power for trustees to amend scheme rules so as to allow for the payment of bridging pensions beyond age 65 in line with the increased state pension age.