Regular round-up of the latest pensions, investments, trusteeship and scheme management news
Current Issues - May 2022
04 May 2022 - Estimated reading time: 9 minutes
See excerpts from this month's articles below (to read more, please download our latest Current Issues).
DB Annual Funding Statement 2022
In its Annual Funding Statement 2022, the Pensions Regulator encourages trustees of private sector defined benefit pension schemes to engage in open dialogue with their sponsors about immediate challenges and longer-term risks. There is recognition of the current difficult economic conditions—including high fuel and energy prices and the war in Ukraine—as well as the lingering effects of COVID-19 and Brexit, and the implications for schemes and their sponsors. Robust risk management and long-term planning remain vital.
GMP equalisation: tax effects of transfer top-ups & conversion
Her Majesty's Revenue and Customs (HMRC) has published a new Guaranteed Minimum Pension (GMP) Equalisation Newsletter, covering issues that arise when scheme administrators take corrective action in connection with historical transfers, and providing an update and guidance for those who convert GMPs into ordinary scheme benefits after equalisation.
Tax relief for low earners in ‘net pay’ arrangements
Her Majesty’s Treasury (HMT) expects that the first top-ups for scheme members affected by the ‘net pay anomaly’ will be ‘paid by 2026-27’. This seems like evidence of slippage in the timetable announced at the time of the Autumn Budget 2021.
Regulator pursues overseas parent over MBO
The Pensions Regulator has imposed a contribution notice on a German company that (in its assessment) disposed of a UK business with a ‘complete disregard’ for the interests of the business’s defined benefit (DB) pension scheme. For the first time, the contribution notice included amounts in respect of lost investment returns and interest.
Regulator's guidance on conflict in Ukraine
In March, the Pensions Regulator has published a brief note on its expectations of pension scheme trustees in light of the conflict in Ukraine. The note mainly covers investment issues, but also touches on cyber security and member communications.
HMRC newsletter April 2022
Highlights from Her Majesty’s Revenue and Custom's Pension Schemes Newsletter 138.