Falklands : Question Number 21/18 by the Honourable Ian Hansen
Submitted by Falkland Islands News Network (Juanita Brock) 31.08.2018 (Current Article)
Following the approval of this House to increase the trivial pension limit to £40,000 during the budget session this year enabling persons with a Falkland Islands Pension Scheme contribution of this amount or less to draw down on these funds as a cash payment, Executive Council report 53/18 -
Question Number 21/18 by the Honourable Ian Hansen
Mr Speaker, Honourable Members, If I could just beg leave to clarify one of these questions being asked so that those listening understand more?
Following the approval of this House to increase the trivial pension limit to £40,000 during the budget session this year enabling persons with a Falkland Islands Pension Scheme contribution of this amount or less to draw down on these funds as a cash payment, Executive Council report 53/18 - Falkland Islands Pension Scheme (“FIPS”) – Increase to Trivial Pension Threshold, paragraph 4.20 indicates that “FIG Treasury plan to investigate further the mechanics of providing a means to convert a trivial annuity into a lump sum. In effect this is buying out future pension rights for trivial pensions, if the pension so chooses.”
Please could the Honourable Roger Spink update this House on the progress in respect of this work and if there is a timeframe for its resolution.
Answer by the Hon Mr Roger Spink:
Mr Speaker, Honourable Members, FIG Treasury have discussed the principle of converting the lower value Falkland Islands pension scheme annuities into a lump sum with a firm of actuaries. The actuaries agreed that it should be possible to agree a methodology to compute the lump sum calculations and confirmed that they would send a quote together with broad terms of reference to the treasury during September, if FIG proceeds and the main piece of actuarial work is expected to be completed by December 2018.
However, potential changes to legislation would need to be considered before any payments can occur. A target for conclusion in the Finance Bill 2019 appears a current realistic target.
(Mike cut out but I think he said “Thank You.)
IH: Mr Speaker, Honourable Members, I thank the Honourable Roger Spink for that update and look forward to seeing where it goes in the future.
Thank you.
LR: Mr Speaker, just for clarity, could the Honourable Member explain that if that mean if anyone who is approaching the date where they would be looking to draw down that lump sum may actually find that they are not initially (mike cut out)
RS: I may be corrected by the Honourable Financial Secretary but I think at the moment you are approaching that date you would be able (mike cut out) your lump sum but if you are already in receipt of a trivial pension, that is when it will need the actuarial valuation in order to pay yu out that lump sum.
KB: Honourable Financial Secretary, do you wish to clarify?
The Financial Secretary indicates No
LR: I thank the Honourable MLA Spink and the Financial Secretary for that clarification. I am probably not alone in being one of those people that (mike cut out) I slightly glaze over when we talk about pensions. Happily it is still a reasonable way away from me. But it does impact an awful lot of people so I would ask that this information is made (mike cut out) public and as (mike cut out) understood as possible just so that because I think there is a bit of confusion (mike cut out) out and about just how this will work. So, you know, I appreciate there is a lot of work to be done still (mike cut out) you know perhaps at least a little letter explaining some terms of where people (mike cut out)
Financial Secretary: (mike cut out)
KB: Any other comments or supplementary questions? (Mike cut out)
Motions may follow depending on broadcast quality.
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