COVID-19 - Emergency legislation (pensions aspects)

The Coronavirus Act 2020, which was fast-tracked through Parliament and received Royal Assent in a break-neck six days, creates a new category of statutory leave for volunteers, and enables retired NHS workers to return to service or increase their commitments without having their pensions in payment reduced.

COVID-19 - AE implications of the Job Retention Scheme

Her Majesty’s Revenue and Customs (HMRC) has outlined details of the Government’s Coronavirus Job Retention Scheme, including the implications for auto-enrolment contributions.

Revising the DB Funding Code (phase one)

The Pensions Regulator has initiated the first phase of consultation on a revised Code of Practice for the funding of defined benefit (DB) schemes. This phase solicits comments on TPR’s proposed approach and underlying principles. The headlines are a twin-track route to valuation compliance, with the focus on a long-term objective. It puts the onus on trustees to demonstrate compliance and could lead to major overhauls in funding and recovery plans.

Budget 2020

Chancellor of the Exchequer Rishi Sunak’s first Budget was understandably focused on the Government’s response to the coronavirus outbreak. Despite that, he made time for one pensions-related announcement (alleviating the ill-effects of the tapered annual allowance), and there are other nuggets contained in the documents accompanying his Budget Statement.

Draft climate-risk governance guidance for trustees

The Department for Work and Pensions (DWP) is consulting on non-statutory guidance designed to help the trustees of private-sector occupational pension scheme to assess, manage and report upon climate-related risks, in line with recommendations from the Task-force on Climate-related Financial Disclosures (TCFD). The guidance may also be of interest to those running funded public-sector pension schemes like the Local Government Pension Scheme (LGPS).

Government explores timing & effects of RPI change

Her Majesty’s Treasury and the UK Statistics Authority (UKSA) published A Consultation on the Reform to Retail Prices Index Methodology to coincide with the Budget. Although publication of the Retail Prices Index (RPI) will continue, the underlying calculations and data sources are likely to change, resulting in lower announced rates of inflation.

General Levy increase revoked

In light of the current COVID-19 crisis, the Department for Work and Pensions (DWP) has decided not to go ahead with its previously announced increase in the rates of the General Levy.

PASA COVID-19 activity

DB transfer guidance—consultation period extended

The Pensions Administration Standards Association (PASA) has extended the consultation period for its draft Defined Benefit Transfers: Code of Good Practice.

Guidance for administrators

The PASA has also published guidance to support administrators during the COVID-19 crisis. It urges administrators to focus on ‘continuing to pay promised benefits, ensuring there are sufficient funds available and keeping accurate records of any work in progress’.

Pension scam prevention initiatives

The Pension Scams Industry Group (PSIG) plans to create: an intelligence-sharing resource to tackle pension scams.

HMRC updates

Her Majesty's Revenue and Customs (HMRC) has published two Pension Schemes Newsletters since the March edition of Current Issues.

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