Stephenson Harwood pensions team advise RoadChef Pension Scheme trustees on £24 million insurance bulk annuity contract - Philip Goodchild, Dan Bowman and Julia Cooper have advised the trustees of the RoadChef Pension Scheme in relation to a £24 million bulk annuity contract with Canada Life which secured all the Scheme members' benefits. In particular, the pensions team advised on the benefits to be secured under the contract as provided in the Scheme's current and historic governing documentation.
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.
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?
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.
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.
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.
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.
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.
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.
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. (£)