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The Competition and Markets Authority (“CMA”) has published the Investment Consultancy and Fiduciary Management Market Investigation Order 2019, the package of remedies arising from its market investigation into investment consultancy and fiduciary management. Mandatory tendering for Fiduciary Management With effect from 10 December 2019 trustees of schemes who plan to appoint a fiduciary manager to […]

The Department for Work and Pensions (“DWP”) has published guidance to clarify how schemes may use conversion of Guaranteed Minimum Pensions to achieve equal benefits for men and women. Background The DWP had published a description of the methodology in November 2016.  The process involves: calculating the actuarial value of each member’s benefits (A), calculating […]

The Government has decided to offer a new type of employer-sponsored pension scheme that will entail all the members sharing the risks.  Collective Defined Contribution (“CDC”) will be schemes with a target level of benefit where the contributions are fixed.  Surpluses and deficits will be addressed by adjusting members’ benefits rather than by altering the […]

Summary In the case of KeyMed v Hillman the High Court has confirmed that trustees have no fiduciary duty to the sponsoring employer, although they may properly consider the employer’s interests where those do not conflict with the interests of the scheme members or the purposes of the pension scheme. KeyMed brought the case against […]

Summary The Pensions Regulator has published its annual funding statement, providing guidance for those schemes whose actuarial valuation dates fall between 22 September 2018 and 21 September 2019, although it should be of interest to other schemes as well. This year’s statement’s key themes are: having a clear strategy to meet long-term goals, strategy being […]

The Competition & Markets Authority (“CMA”) published its final report on its market investigation into investment consultancy in December.  The Government has now responded. Pure investment consultancy The CMA’s final report confirms that this market is not highly concentrated and there are no significant barriers for firms to enter the market, although expansion may be […]

Summary The Department for Work and Pensions (DWP) has been consulting on a legislative framework for the consolidation of defined benefit pension schemes into superfunds, in order to provide adequate protection for members being transferred into such schemes. Many of the proposals in the consultation will require primary legislation. Until this can be passed, DWP […]

Summary The Government has published its response following the consultation on amendments to trustees’ duties in relation to pension scheme investment, as well as new regulations that introduce new requirements in relation to Statements of Investment Principles. Background The Government proposed, in its consultation, that, when preparing or revising their Statement of Investment Principles (“SIP”), […]

In the case of Commissioners of HMRC v Parry & Others, the Court has decided that a charge to Inheritance Tax (IHT) arose in relation to a transfer from a defined benefit scheme to a defined contribution arrangement within two years of the member’s death. Background Mrs S transferred her defined benefit pension rights to […]

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 […]