Related insights: Pensions
Pieces of the jigsaw – DWP consults on options for defined benefit schemes
08 Apr 2024
The foreword to the DWP's recently published consultation on options for defined benefit (DB) schemes promises:
"An overhauling of the pensions landscape to provide better outcomes for savers, drive a more consolidated market, and enable pension funds to invest in a diverse portfolio … As part of this work, [the DWP] will ensure that the assets held in UK pension schemes can work harder for scheme members, provide a secure retirement and support the growth of the wider economy".
"An overhauling of the pensions landscape to provide better outcomes for savers, drive a more consolidated market, and enable pension funds to invest in a diverse portfolio … As part of this work, [the DWP] will ensure that the assets held in UK pension schemes can work harder for scheme members, provide a secure retirement and support the growth of the wider economy".
LTA changes: getting ready for "L-Day"
22 Feb 2024
The Finance Bill issued on the 29 November 2023 introduced draft legislation to repeal the current Lifetime Allowance (LTA) regime and replace it with a new system of lump sum allowances. The changes are set to take effect from 6 April 2024: "L-Day".
However, the Finance Bill is still in draft and has only just passed the public bill committee stage; it could still be subject to further change before it receives Royal Assent. HMRC intends to continue hosting LTA working groups, and to issue communications every two weeks, right up to L-Day.
However, the Finance Bill is still in draft and has only just passed the public bill committee stage; it could still be subject to further change before it receives Royal Assent. HMRC intends to continue hosting LTA working groups, and to issue communications every two weeks, right up to L-Day.
The long-awaited 'General Code'
20 Feb 2024
In January 2024, the Pensions Regulator (the Regulator) at long last published its General (formerly 'Single') Code of Practice (the Code) and consultation response. This fulfils the Regulator's obligation under regulations published back in 2018, to issue a Code of Practice to help pension scheme trustees establish and operate an effective system of governance (the ESOG).
Cyber security in the pensions sector
08 Feb 2024
The risk of suffering a cyberattack is, at this time, high. In 2022, 39% of UK businesses identified a cyberattack, a figure that is said to be underreported, and 21% of those attacks were said to be more sophisticated in nature, such as those involving the use of malware, ransomware or denial of service (DoS) attacks.
Articles in Pensions Age and European Pensions in Autumn 2023 highlighted research which concluded that there had been a 4,000% increase in reported cyber security breaches by UK pension schemes in 2022/23 compared with 2021/22.
Articles in Pensions Age and European Pensions in Autumn 2023 highlighted research which concluded that there had been a 4,000% increase in reported cyber security breaches by UK pension schemes in 2022/23 compared with 2021/22.
Virgin Media s37 judgment: (another) High Court decision creates yet more questions about historic pension scheme amendments
06 Jul 2023
Many readers will know the uncertainty and impact of certain landmark decisions such as Barber v Guardian Royal Exchange and Lloyds Banking Group Trustees v Lloyds Bank on UK pension schemes. Last month the High Court handed down Virgin Media Limited v NTL Pension Trustees II Limited and others which could have similar wide-reaching consequences for UK pension schemes which were historically contracted out on a salary-related basis. Below, we summarise the judgment, and consider the impact on UK pension schemes and what (if anything) trustees should be doing.
Budget 2023 Comment: Everything, Everywhere, Enterprise, Employment, EIS, Energy costs and (err) a big giveaway for pensions
16 Mar 2023
Wednesday marked the first Spring Budget for Chancellor Jeremy Hunt following his Autumn Statement last November. He built it around four 'Es'.
With mild echoes of the ill-fated mini-Budget under Prime Minister Liz Truss and Chancellor Kwasi Kwarteng, albeit with less than that full-splurge agenda, plus full OBR input and prior consultation on many if not all policy changes, this was a pro-growth budget. Hence, given some improved news on the public finances, there were measures aimed at incentivising business investment ("Enterprise"), keeping people in work ("Employment"), announcement of phased changes to support working families with early years education and wrapround childcare, that having been identified as an important supply-side reform ("Education") and initiatives to address geographic disparities in the UK ("Everywhere").
With mild echoes of the ill-fated mini-Budget under Prime Minister Liz Truss and Chancellor Kwasi Kwarteng, albeit with less than that full-splurge agenda, plus full OBR input and prior consultation on many if not all policy changes, this was a pro-growth budget. Hence, given some improved news on the public finances, there were measures aimed at incentivising business investment ("Enterprise"), keeping people in work ("Employment"), announcement of phased changes to support working families with early years education and wrapround childcare, that having been identified as an important supply-side reform ("Education") and initiatives to address geographic disparities in the UK ("Everywhere").
Spring Budget: Chancellor abolishes lifetime allowance – implications for sponsoring employers and trustees
15 Mar 2023
The widely trailed changes to pension tax allowances were officially unveiled today as part of the Spring Budget, with the surprise announcement that the lifetime allowance (which is the amount of pension savings that receives favourable tax treatment over a person's lifetime) will be abolished from April 2034.
Biodiversity: What can pension schemes do?
13 Dec 2022
Experts suggest that investors are progressively interested in how companies interact with and care for our natural ecosystems. Tracy Walsh, Partner at Womble Bond Dickinson, explains how pension schemes can contribute to companies' environmental efforts in Pensions Expert.
Restricting a member's statutory right to take a transfer value - empowering trustees and protecting members?
30 Nov 2021
The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations came into force today, 30 November 2021. These regulations place additional obligations on trustees in a bid to protect members from the risk of being scammed when they take a statutory transfer of their pension benefits out of a scheme.
How can pension schemes align with ESG goals?
06 Oct 2021
Pension schemes and the industry as a whole are responding to the zeitgeist of ESG investing. How can trustees ensure that managers engage positively with investee companies on their behalf?
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