Welcome to our month-to-month replace on present authorized points, designed that will help you keep updated with key developments between trustee conferences, and to assist the authorized replace merchandise in your subsequent trustee agenda. We even have a DC-only briefing.
TPR annual funding assertion NEW
The Pensions Regulator (TPR) has printed its newest annual funding assertion, with a give attention to present market uncertainties. All DB schemes and sponsors ought to familiarize themselves with the content material, and particularly these with an efficient valuation date between 22 September 2021 and 21 September 2022 (Tranche 17), or the place funding and threat methods are being reviewed in reference to wider scheme adjustments. Learn the assertion.
ACTION: Assessment the assertion and take into account whether or not any adjustments are required to your scheme’s funding technique or processes.
PASA DB transfers steerage NEW
The Pensions Administration Requirements Affiliation (PASA) has printed good apply steerage on DB transfers. The suggestions within the steerage are voluntary, however PASA anticipates that the Pensions Ombudsman will reference this when reviewing complaints, for instance of what good trade apply appears like. Learn the steerage.
ACTION: Talk about together with your directors whether or not their processes are in step with the brand new steerage.
GMP equalization steerage
HMRC has printed a brand new GMP equalization (GMPE) e-newsletter, with steerage on tax points round making top-up funds to appropriate earlier transfers which didn’t account for GMPE (as a top-up switch or lump sum); and GMP conversion. Learn the e-newsletter.
PASA has printed FAQs designed to offer pragmatic steerage to directors implementing GMPE. The Pensions and Lifetime Financial savings Affiliation (PLSA) has launched HMRC-approved steerage on tax remedy of curiosity on GMPE funds. Learn the FAQs and steerage on curiosity funds.
ACTION: Think about the steerage as a part of any ongoing GMPE challenge.
‘Stronger nudge’ necessities REMINDER
From 1 June 2022 trustees will likely be required to offer members a ‘stronger nudge’ to acquire pensions steerage. Amongst different issues, which means that schemes will likely be required to supply to ebook a Pension Clever appointment for members over 50 who need to entry versatile advantages. Learn the rules and TPR’s steerage.
ACTION: Test together with your directors that processes are in place to make sure compliance from 1 June.
TPR local weather change instance
TPR has printed an illustrative instance of how trustees would possibly work by means of the necessities of the local weather change governance and reporting rules. This isn’t a one-size-fits-all guidelines, however will give schemes a good suggestion of TPR’s expectations. Learn the instance and watch our latest webinars.
ACTION: Test your processes in opposition to the instance to establish any areas which can want additional consideration.
TPR steerage on Russia’s navy invasion of Ukraine
TPR has issued steerage for trustees relating to Russia’s navy invasion of Ukraine, setting out its expectations in gentle of volatility in funding markets and an anticipated interval of heightened uncertainty. It consists of plenty of motion factors for trustees to think about. Learn the steerage.
ACTION: Assessment TPR’s steerage and take into account whether or not there are any motion factors to your scheme; preserve a watching temporary on developments.
Have your say
- TPR has launched a session on a brand new enforcement coverage, consolidating and simplifying current insurance policies for DB, DC, hybrid and public service pension schemes, in addition to a prosecution coverage up to date to replicate TPR’s new powers beneath the Pension Schemes Act 2021. The session closes on 24 June 2022: learn extra.
Watch this area
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- The federal government has consulted on adjustments to the notifiable occasions regime. The rules that have been anticipated to come back into drive on 6 April 2022 have been delayed; there was no official replace on a revised date, however the present trade expectation is that this can be October 2022: learn extra.
- TPR has consulted on its proposed single code of apply: watch our webinar on the proposals; learn TPR’s interim response. The interim response famous that TPR doesn’t anticipate to put the brand new code in parliament earlier than spring 2022. It’s, due to this fact, unlikely to turn into efficient earlier than summer time 2022.
- Session on new DB funding rules is anticipated within the first half of 2022. TPR has introduced that its second session on the revised DB funding code has been pushed again to late summer time 2022: learn extra.
- A name for proof on decumulation in occupational schemes is anticipated shortly, overlaying areas together with whether or not there’s a must require funding pathways (providing a variety of funding plans based mostly on what a member intends to do with their pension pot).
- A revised code on transfers, and different supplies from the Pension Scams Business Group, are anticipated in June.
- Laws to interchange the present regime on strategic goals for funding consultancy suppliers and aggressive tenders for fiduciary administration companies are anticipated within the first half of 2022.
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