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When trustees discover that they have made overpayments to one or more members, they have a duty to recover the overpaid amounts for the benefit of the trust.  However, it can be difficult to seek repayment from pensioners, who are by definition the older members of the scheme.  Therefore, trustees frequently prefer another solution such […]

Summary The Pension Schemes Act 2021 requires defined benefit (DB) pension schemes to have a funding and investment strategy, for the purpose of ensuring that scheme benefits can be paid over the long term.  They will also be required to report progress against their targets, including the main risks and mitigations, to the Pensions Regulator […]

Summary The Pensions Regulator has published its annual funding statement, providing guidance for those schemes whose actuarial valuation dates fall between 22 September 2021 and 21 September 2022 (“tranche 17”), although it should be of interest to other schemes as well. TPR notes that these valuations are being carried out in a period of high […]

Background The Pension Schemes Act 2021 gave new powers to the Pensions Regulator (TPR) to: bring criminal prosecutions, or impose fines of up to £1 million, for: avoiding an employer debt or for conduct that risks accrued benefits in a scheme or providing TPR with false or misleading information and issue Contribution Notices, requiring a […]

Background The Pensions Act 2004 introduced a power for the Pensions Regulator (TPR) to issue a Contribution Notice (CN) in certain circumstances, requiring an employer (or a connected party) in relation to a defined benefit pension scheme to make a payment to the scheme.  Initially, there was one test that might trigger a CN, known […]

Background Section 69 of the Pensions Act 2004 requires trustees and employers in relation to a pension scheme to notify the Pensions Regulator of certain events which have the potential to cause harm to the scheme. The Government is consulting on introducing two new notifiable events, removing one existing notifiable event and making changes to […]

Summary The Pensions Regulator has published its annual funding statement, providing guidance for those schemes whose actuarial valuation dates fall between 22 September 2020 and 21 September 2021, although it should be of interest to other schemes as well. TPR expects trustees whose schemes are undergoing valuations between these dates to comply fully with the […]

The UK Government and UK Statistics Authority confirmed on 25 November 2020 that the Retail Prices Index (RPI) is to be set equal to the CPIH (Consumer Prices Index including Housing) from 2030. There are differences between RPI and CPIH, both in the items that are included in the calculation and in the method of […]

The PPF has issued the final levy rules for the 2021-22 year.  This would be the first year of a new triennium, when the levy rules would be, largely, fixed for the next three years.  However, in light of the Covid-19 pandemic, the PPF has decided to look at one year at a time until […]

The third judgment arising from the Lloyds case on “GMP equalisation” was published on 20 November 2020.  The High Court ruled that historical transfers out of schemes should be revisited and equalised, although it is unclear how proactive trustees need to be in addressing the issue.  This will apply only to statutory, individual transfers out, […]