Current Issues - March 2025

Please see excerpts below from this month's Current Issues. Click here to read the full publication. 

DC oversight shake-up

The Pensions Regulator announced changes to its supervision of defined contribution (DC) master-trust schemes.[1] It says that they will allow speedier identification of emerging risks, and help make DC master trusts into ‘the gold standard in pensions provision.’ It’s part of a move towards a more-prudential approach, under which the Regulator will be watchful for system-wide risks, in addition to scheme-level ones.

We’re anti-scammin’ (we hope you’re anti-scammin’ too) 

The Pensions Regulator posted a blog describing the state of its activities on pension scams. It provides examples of how it works with other organisations and agencies to gather information about, raise awareness of, and combat fraudulent endeavours, and how the pensions industry can help.

New rights for parents of the tiniest tots

The Government is, from 6 April 2025, introducing new statutory leave and pay rights for parents of newborns who require extended hospital stays. The details are in draft regulations laid before Parliament.

The new rights, under the Neonatal Care (Leave & Pay) Act 2023, will apply to parents of babies born on or after 6 April, if neonatal care commences within the first 28 days after birth, and lasts for at least a week. It will entitle parents to up to twelve weeks of leave (in additional to existing family leave rights), in blocks of at least one week, provided it's taken within the 68 weeks following birth.

Sister schemes to share surplus

The trustee of a defined benefit (DB) pension scheme obtained the approval of the High Court for a proposed merger with a ‘sister’ scheme.[1] The judge gave his blessing to the merger even though it will dilute the surplus available to augment the benefits of existing members, and both schemes are currently in the process of winding up as a consequence of the sponsoring employer’s insolvency.