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HS Financial Services - Pension Act 2014 - things to consider
Pension Act 2014 - things to consider
In all the excitement following the Budget announcement, you might have missed the silent passage of the Pensions Bill into the harbour of Royal Assent thus becoming the Pensions Act 2014. We've put together a brief note of some of the main points below, with possible planning points for you to consider.

Charges
  • A charge cap will apply in workplace pension schemes (0.75% is proposed by the DWP)
  • New governance requirements will apply to DC pension schemes
  • The FCA will work to make charges and transaction costs in some pension schemes transparent and comparable.

Employers with pensions schemes that they want to use for auto enrollment will need to seek advice to make sure they fit within the charge cap, due to be implemented from April 2015.

Auto enrolment
  • Certain people will be excluded from auto enrollment (e.g. those with lifetime allowance protection, or very close to retirement)
  • Trust-based defined contribution schemes will no longer be abe to offer a short service refund for workers with less than 2 years' service

Advisers with clients who have lifetime allowance protection should take comfort that the protection might not be lost if they are not automatically enrolled.

How this works is yet to be decided - it may not be an automatic exception and so will require action from the protected individual and their adviser.

State Pensions
  • The new single tier state pension will start from 6 April 2016
  • State pension age will increase from 66 to 67 between 2026 and 2028

People need to be aware that they might have to revisit their retirement plans and the age at which they plan on retiring.

Some people with pre-exisiting state benefits that are more than the amounts of the new single tier state pension need to be aware that they'll still have to pay national insurance contributions but will not accrue further state benefits.

Automatic Transfers
  • Requires the Government to lay Regulations to allow the automatic transfer of small pots and allow the merging of pots within the same scheme.

Small pots of £10,000 will be automatically transferred from one auto enrollment scheme to the next when people move jobs.

This is to be a non-advised process but the transferee will have the option to opt out. Eventually these small pots will become larger, and there will be a need for advice.
Posted by: Anne Barker on 20 Aug 2014

General Buyer Terms

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Business
    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 1998. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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