IN THIS ISSUE:
- Master trusts: The Pensions Regulator has published various materials about the authorisation and supervision regime for master trusts, which commences on 1 October 2018. Some schemes may inadvertently fall within the "master trust" definition – in this section we give examples of such schemes.
- Pensions Minister's statement: The Pensions Minister has issued a written statement to Parliament concerning the timing of the government's response to the consultation on greater Pensions Regulator powers and new consultations on DB scheme consolidation and collective DC schemes.
- PPF compensation levels: The European Court has ruled against the PPF in Hampshire v Board of the Pension Protection Fund, concerning the adequacy of PPF compensation.
- Dividends and deficit recovery contributions: The government has published its response to the consultation on corporate governance issues where firms are in, or may be approaching, insolvency and some wider corporate governance issues. There will be no immediate steps to restrict the payments of dividends by companies with underfunded pension schemes.
- Corporate governance code: The FRC has published a new version of The UK Corporate Governance Code.
- Investment consultancy and fiduciary management markets: The Competition and Markets Authority has published its provisional decision in the investigation of the investment consultancy and fiduciary management markets. Its proposed remedies include competitive tender requirements in respect of fiduciary management services.
- Pension scams: The Pensions Regulator and FCA have launched a new advertising campaign to warn against pension scams and the Regulator has refreshed its warning materials.
- Giving reasons for decisions: The Pensions Ombudsman has upheld a complaint against a SIPP administrator who decided not to award any death benefits to the partner of a deceased scheme member, requiring the administrator to tell the partner the reasons for its ultimate decision.
- Transferring scheme liable for scam transfer: The Pensions Ombudsman has determined that a scheme administrator should not have paid a transfer to an alleged scam scheme without first having sent the individual the Pensions Regulator's pension scam warning literature and making more enquiries about the scheme and the individual's relationship with it. The Ombudsman considered that, due to these failings, the statutory transfer discharge did not apply.
- CETV reduction basis: The Pensions Ombudsman has rejected a complaint by a member of an underfunded DB scheme where the trustee reduced cash equivalent transfer values by reference to PPF priorities.
- DC governance: The Pensions Administration Standards Association has published governance guidance for DC schemes covering data, decumulation, controls and processes, management information and transitions.
- Treasury committee report on household finances: An HM Treasury Select Committee report "Household finances: income, saving and debt" makes recommendations in relation to pension reforms, including as to tax relief, more guidance and extending automatic enrolment.
- Pension costs and transparency inquiry: The Work and Pensions Select Committee has launched a new inquiry into whether the pensions industry provides sufficient transparency to consumers around charges, investment strategy and performance.
- Cold calling ban: The government has consulted on draft regulations to bring into force a ban on pensions cold calling.
Download >> What's Happening In Pensions - September 2018