Personal Pensions: Local Government
The question
To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of the treatment of SSIP funds as savings rather than pensions by local authorities.
Answered by Torsten Bell
DWP does not take into account the value of a pension fund (such as a SIPP) that someone and/or their employer has paid into, this protects investments for retirement. Monies drawn from a pension fund, either as a lump-sum, a pension/annuity or both will be taken into account in means-tested benefits in the usual way. This includes where someone reaches the age for state pension credit and has chosen to continue to defer their private/occupational or state pension, in which case this may be taken into account as notional income.
How SIPPs are treated by local authorities is a matter for them and MHCLG.
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