Changes to the Lifetime Allowance
Following the changes to the Lifetime Allowance ("LTA") regime effective from 6 April of this year, we have some more clarity on how these changes will operate in practice and on the implications for individuals with Enhanced Protection or any of the Fixed Protections. In this briefing we highlight three key points.
Why we need to brace for more regulatory intervention
Chris Edwards-Earl says The Pensions Regulator (TPR) has taken the opportunity to emphasise to trustees the message of "monitor" and "notify" but asks, with economic headwinds, and the regulator expressing concerns, will we be seeing a growth in regulatory intervention?
What does the Spring Budget 2023 mean for pension savers?
The focus of today's Spring Budget was growth. "Prosperity with purpose", based on 4 pillars of industrial growth. The third of these pillars and the one we're most interested in is "employment". Excluding students, there are over 7 million working age adults in the UK who are classed as economically inactive. From the Treasury's perspective this is highly problematic for economic growth.
Transfers out – are trustees at a greater risk than they realise?
In an article published by Professional Pensions, partner Stephen Richards and senior knowledge development lawyer Julia Ward, discuss transfers out, and whether trustees are at greater risk than they realise.
The Pensions Regulator consults on new funding code
Back in our July briefing we discussed how the Pension Schemes Act 2021 provided for a framework for a new defined benefit funding regime. In particular, the framework would require defined benefit schemes to have a funding and investment strategy for the purpose of ensuring benefits under the scheme can be paid over the long term.
Pension schemes and inflation
In the 12 months to August 2022, RPI has increased by 12.3% and CPI 9.9%. With this recent significant rise in inflation, employers and trustees have been asking what the impact of this is upon their defined benefit pension schemes. Members are also concerned that, against high inflation and a 'cost of living crisis, their pensions will maintain their value in real terms.
Court declares change of RPI to CPIH lawful
A number of pension funds have challenged the decision of the then-Chancellor and the UKSA to align RPI with CPIH. In this alert we discuss the outcome of that challenge and the impact of the decision on defined benefit pension schemes.
New approach to funding defined benefit pension schemes
The Pension Schemes Act 2021 provided for a framework for a new defined benefit funding regime. In particular, the framework would require defined benefit schemes to have a funding and investment strategy for the purpose of ensuring benefits under the scheme can be paid over the long term. The DWP is now consulting on draft regulations which explain what this will mean for trustees in practice. Read more to find out what trustees will be required to produce along with other changes and next steps.
Employment tribunal case highlights growing pressures on member nominated trustees
Writing for Professional Pensions, managing associate Chris Edwards-Earl analyses a recent employment tribunal case, Folarin v Transport for London. In the piece, Chris explains how the case highlights the growing pressures on member nominated trustees, and why it illustrates that the growth of professional trusteeship is set to continue. (£)
Risk management, reduced recovery plans and mitigation—TPR’s Annual Funding Statement 2022
Writing for LexisNexis, senior knowledge development lawyer Julia Ward examines the key themes in the Pension Regulator's Annual Funding Statement 2022. This is particularly relevant for trustees and sponsors of defined benefit pension schemes with valuation dates between 22 September 2021 and 21 September 2022 by setting out how to approach valuations in the current political-economic climate.