Regular round-up of the latest pensions, investments, trusteeship and scheme management news
Current Issues - January 2020
08 Jan 2020 - Estimated reading time: 8 minutes
See excerpts from this month's articles below (to read more, please download our latest Current Issues). You can also listen to the highlights on episode 3 of our podcast, Hymans Roberton On...DC Quarterly Review.
Polished-up Pension Schemes Bill Promised
Although the Queen’s Speech, on 19 December 2019, did not mention it, background briefing notes confirm the new Government’s intention to revive the Pension Schemes Bill that was lost, pre-election, with the dissolution of Parliament. Pensions Minister Guy Opperman subsequently said that the Bill had been ‘refined’, and that he hoped to reintroduce it to Parliament ‘very early in the new year.’
Higher PPF compensation for some - but 100% protection not universal
The European Court of Justice (ECJ) has ruled that institutions such as the UK’s Pension Protection Fund (PPF) are not required to fully compensate pension members of underfunded pension schemes whose employers become insolvent. It is possible, however, that the PPF will have to increase the level of protection it provides to those in relative poverty.
PPF: 2020/21 levy details & 2021/22 insolvency risk methodology
The Pension Protection Fund (PPF) has finalised the details of the 2020/21 levies on defined benefit (DB) schemes. It is also soliciting feedback on changes that it proposes to make to its insolvency risk methodology from 2021/22, and on the services accessible via a new online portal.
The Pensions Regulator: compliance & enforcement update
The Pensions Regulator has made a plea for transparency and early engagement during corporate transactions.
PASA master trust transition guidance
The Pensions Administration Standards Association (PASA) has published practical guidance for trustees and administrators to help them protect members when moving members to and from defined contribution (DC) master trusts.
Stop-gap AA taper fixes for the NHS
United Kingdom authorities have announced short-term solutions to the problem that the annual allowance taper is causing within the National Health Service. Whereas the Scottish Government has opted for immediate pay enhancements in lieu of pension provision, the response in England is a promise to offset deductions to retirement pensions.
Deadline for part-timer discrimination claims
The UK’s Supreme Court has ruled that the three-month limit for employment-tribunal pensions-discrimination claims made by part-timers runs from the date of retirement (rather than, or as an alternative to, the point of leaving service).
New Government, fresh Budget
The next Budget will be on 11 March 2020.
Listen to our podcast
In episode 3 of Hymans Robertson On… our host Victoria Panormo, Senior DC Investment Consultant, presents our first DC Quarterly Review. In this episode Victoria gives a brief overview of the latest important developments in DC. In this show she covers the PLSA retirement living standards (1.07), the FCA and Government responses to the Work and Pensions Committee’s recommendations on pension costs and transparencies (3.42), as well as the latest on the DC master trust market (6.05). You can find links to all the content that is referenced in the show notes below.
Links and Show Notes
PLSA Retirement Living Standards (1.07mins)
Recommendations on pensions costs and transparancies (3.42mins)
Latest in the Master Trust Market (6.05mins)