Pensions law trustee update - Q4 2022

Priorities for trustees this quarter are to:

  • consider if they need to take any steps as a result of the rapid increase to inflation (for example discretionary increases and a review of factors used for early retirement and transfer values);
  • understand the steps they should be taking in light of the recent increase in gilt yields and collateral calls under liability-driven investments (LDIs) and its aftermath.
  • ensure they are on track with their pension dashboard staging date; recent guidance highlights there are very strict and limited situations that this date can be deferred;

In addition, trustees should be aware of:

  • the Pensions Regulator's (TPR) response to the consultation on its draft enforcement and prosecution policies. TPR has also published an enforcement strategy;
  • the expectations that TPR has on trustees when their sponsoring employers are:
    • undertaking merger and acquisitions; and/or
    • refinancing.
  • the alignment of RPI to CPIH from 2030. Trustees should understand the impact this will have on the assets, liabilities and the funding position of their schemes.
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