Did you see this article covering the end of transitional arrangements relating to the notional cap?
The deadline is the end of April and if a group life insurance policy doesn’t accurately reflect the new scheme benefit basis there’s the potential for large uninsured liabilities...which will probably be laid at an adviser’s door.
Clients need to make active decisions. They can either introduce a scheme cap within the pension scheme rules or make sure the cap is removed from the insurance cover. The key point is for the insurance cover to match the actual risk.
Where they exist, uninsured liabilities will affect senior employees, and it may mean underwriting is required if benefits are above the free cover level, which could take weeks or months to complete – unless your insurer is offering online member underwriting that can be completed in minutes.
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