Under our pages 'What is remedy?' we set out the proposed timeline of when Remediable Service Statements (RSS) should be provided within the legislative timeline.
Whilst we are still within the timeframe that was originally proposed, we do acknowledge that you would have liked this issue to have been resolved as soon as possible after 1 October 2023. Unfortunately, we have been navigating several policy issues on the application of tax and interest which have been outside our control. Some of these issues have now been clarified, and therefore scheme managers can start to instruct administrators to provide Immediate Choice RSS' to certain members however, there is still one ongoing matter which affects certain individuals and prevents administrators, at this stage, from providing you with your RSS.
The issue relates to the calculation required for top-up lump sums and the offsetting of previous tax paid to HM Revenue & Customs (HMRC). It has been confirmed that our understanding of how you would offset the original unauthorised payment made to HMRC does not align with current HMRC policy. Currently there is no provision within HMRC legislation that allows an offset approach for individuals who have made an unauthorised payment through the mandating process (which most individuals use originally upon retirement). This position, if left without a solution, whcih will mean that those affected become liable for more tax which is not currently reclaimable either via HMRC or the compensation mechanism in the Public Service Pensions and Judicial Offices Act 2022.
We continue to liaise with HM Treasury (HMT) and HMRC on this matter and there is an agreement in principle from all parties to put in place a resolution to address this. It is likely that any resolution will need new legislation which will take time. In the interim, we continue our discussions with HMT to establish whether there could be formal assurances issued from central government which will allow us to proceed ahead of any legislation coming into force. These discussions are progressing well, however, as we have now entered the pre–General Election period of Purdah it is unlikely that anything official will materialise before 5 July 2024 (and it could be sometime thereafter).
We appreciate that this news will come as a disappointment and apologise for the distress and inconvenience caused. You have our commitment that we will closely monitor the situation and ensure that you are kept up to date as things progress.