Date posted: 01/07/2007
Audience:
- HR Managers and policy teams
- Payroll managers
Action: Please issue the attached Office Notice (ON). The ON is most relevant to those staff who already have additional death in service cover with Equitable Life and are over pension age.
Timing: Immediate
Detail
- Members currently have the facility to increase their death in service cover to four times their salary with additional life cover through Equitable Life and receive full tax relief at the highest rate to which they are liable on their contributions. Following the 2007 Budget, the Chancellor announced the Government’s intention to remove tax relief on new pension term assurance policies bought by employees through occupational pension schemes on or after 29 March 2007.
- Equitable Life have now written to inform us that they will no longer offer death in service cover to new members, or accept any applications from existing policy holders to increase cover. This will be effective from 29 March 2007. We have instructed APACs to return any applications for death in service cover made after this date.
- In addition, those over 60 will no longer be able to continue with their additional death in service cover. Payroll managers should ensure that contributions for additional death in service cover for staff over 60 are stopped with immediate effect. Equitable Life will contact the APAC concerning any staff who reach 60 during the tax year and will refund any contributions made after their 60th birthday.
- EPG section 3.3.1 and 3.3.2 will be amended to remove any reference to life assurance cover.
Contacts:
Enquiries about content, distribution or to receive in a different format
employerhelpdesk@cabinet-office.x.gsi.gov.uk
01256 846414
Employer Helpdesk
Civil Service Pensions
Grosvenor House
Basing View
Basingstoke
RG21 4HG
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