Year: 2018
GMP Equalisation – Further Judgment
14th December 2018
The High Court has issued a further judgment in the Lloyds Bank case, concerning “method D” (an actuarial value test rather than a year-by-year benefit test), used for converting GMPs into non-GMP pension. This confirms that: for pensions in payment, payments to date must be equalised using one of methods A, B or C before … Read more
Lloyds judgment – equalising for the effect of unequal GMPs
9th November 2018
Background In 1978 the Government allowed final salary pension schemes to “contract out” of the State Earnings-related Pension Scheme (“SERPS”). This allowed employers and employees to pay lower National Insurance contributions in return for the employees not being eligible for any SERPS benefit when they retired. One condition was that the pension scheme had to … Read more
New powers for the Pensions Regulator
14th September 2018
Following the White Paper the Department for Work & Pensions has consulted on new powers for the Pensions Regulator (“TPR”) and proposed changes to the Notifiable Events régime. Notifiable Events The Government proposes to add the following as new notifiable events: the sale of a material proportion of the business or assets of a scheme … Read more
European Court of Justice rules PPF cap illegal
7th September 2018
In the case of Hampshire v the Board of the PPF, the European Court of Justice has ruled that the cap on PPF benefits is illegal if it reduces a member’s benefits by more than 50%. Background PPF compensation for members who have not reached their scheme’s normal pension age and have not retired through … Read more
Ombudsman decision in case relating to pension scam
17th August 2018
In a case relating to a transfer out of the Police Pension Scheme that turned out to be a scam, the Pensions Ombudsman has ordered the relevant police authority to reinstate the member in the Police Pension Scheme. Background Mr N was a member of the Police Pension Scheme but opted out in December 2012. … Read more
Clarifying and Strengthening Trustees’ Investment Duties
3rd August 2018
Summary The Government has consulted on amendments to trustees’ duties in relation to pension scheme investment. The consultation includes draft regulations that seek to introduce new requirements in relation to Statements of Investment Principles. Background The 2012 Review of UK Equity Markets and Long-Term Decision Making, carried out by John Kay, recommended that the Law … Read more
CMA investigation into Investment Consultancy – Provisional Findings
27th July 2018
The Competition & Markets Authority (“CMA”) has published the provisional findings of its market investigation into investment consultancy. It has found some evidence of competition problems in relation to investment consultancy but has more serious concerns about the fiduciary management (known also as delegated consulting) market. Proposed remedies include mandatory tendering for schemes moving to … Read more
The Pensions Regulator’s annual funding statement 2018
13th April 2018
The Pensions Regulator has published its annual funding statement, providing guidance for those schemes whose actuarial valuation dates fall between 22 September 2017 and 21 September 2018. We set out below the key messages. Valuations TPR expects schemes having valuations between September 2017 and September 2018 to see a slight improvement in their funding level … Read more
Protecting Defined Benefit Pension Schemes – Government White Paper
23rd March 2018
Summary The Government has published its long-awaited White Paper on defined benefit pension schemes, building on the Green Paper published last Spring. It concludes that there is no systemic problem in the regulatory and legislative framework that governs schemes but that some employers misuse the flexibility available, putting their employees’ pensions at greater risk. The … Read more
CMA – Investment Consultants Market Investigation – Fees and Quality
2nd March 2018
Summary The Competition and Markets Authority (“CMA”) is carrying out a market investigation into investment consultants and has now issued its first working paper, covering fees and quality. Its initial conclusion is that competitive processes are not providing clients with the information necessary to judge the value for money of investment consultants and fiduciary managers. … Read more