News from our regular e-alert service, keeping clients up-to-date with breaking news and new developments on finance, health care and HR issues.
Corporate Finance DB
The Department for Work and Pensions (DWP) has announced the level of the earnings trigger and the qualifying earnings band to be used for automatic enrolment. Contributions under automatic enrolment must be paid on all earnings in the band if the member earns over the trigger. April 2012
The Department for Work and Pensions (DWP) has today begun a formal consultation on its proposed changes to the timetable for introducing automatic enrolment into workplace pensions. March 2012
The European Insurance and Occupational Pensions Authority (EIOPA) yesterday (15 February 2012) responded formally to the European Commission's 'Call for Advice' in relation to its review of the 2003 Pensions Directive ('the IORP Directive'). February 2012
The Department for Work and Pensions (DWP) has today (1 February 2012) published documents confirming most of the final details of the rules in respect of automatic enrolment into workplace pensions. The documents set out changes that are made to regulations and provide revised guidance on the circumstances in which an employer can certify that their defined contribution (DC) scheme (or the DC element of their hybrid scheme) satisfies the quality requirements. February 2012
The Department for Work and Pensions has published draft revisions to the timetable on automatic enrolment into workplace pensions. As expected, it is also proposing slower phasing in of minimum contributions. The Pensions Minister told Parliament today that there would be no further changes to this timetable. January 2012
The Department for Work and Pensions (DWP) has today published draft amending legislation intended to make clear that pension scheme benefits must be equalised to compensate for the inherently unequal nature of guaranteed minimum pensions (GMPs) between men and women. This need to equalise would arise irrespective of whether a comparable employee of the opposite sex exists. January 2012
Following a consultation held in June 2011, the Government has issued new regulations introducing changes to the employer debt provisions. The main change is the introduction of Flexible Apportionment Arrangements (FAAs) as another alternative method of avoiding the default payment of a section 75 debt, when an employer with defined benefit liabilities leaves a multi-employer scheme. The regulations also make changes to the “period of grace” facility extending the time during which a debt trigger can be suspended. December 2011
The Department for Work and Pensions (DWP) yesterday (15 December 2011) launched two consultations: December 2011
On 13 December 2011, the Pension Protection Fund (PPF) published its final Determination setting out how schemes’ pension protection levies will be determined for the year beginning 1 April 2012. There are few changes from the draft Determination published in September 2011. The formula, including scaling factors, is intended to be fixed for three years at a time. December 2011
The Minister of State for Pensions, Steve Webb, announced further changes to the automatic enrolment timetable yesterday. November 2011
With gloom and doom pervading the economy, cheer must be taken wherever it can be found; and the absence of (further) fundamental changes to the tax regime for workplace-based pensions might be about as good as it gets. November 2011
The European Insurance and Occupational Pensions Authority (EIOPA) has published the second of its consultations on the advice it should present to the European Commission in relation to its review of the 2003 Pensions Directive (“the IORP directive”). October 2011
The Government yesterday (13 October) introduced a number of amendments to the Pensions Bill, the key ones being a delay of six months in the proposed increase of the State Pension Age (SPA) to 66 and an amendment to the definition of ‘money purchase benefits’. In addition, the Pensions Regulator has today issued a statement outlining the behaviour it expects from trustees of defined contribution (DC) schemes. October 2011
The Pension Protection Fund (PPF) published its draft Determination setting out how schemes’ pension protection levies will be determined for the year beginning 1 April 2012. The new framework is broadly the same as the proposals published in May 2011. The formula, including scaling factors, is intended to be fixed for three years at a time. September 2011
The Supreme Court yesterday (27 July 2011) rejected the Department for Work and Pensions’ (DWP) appeal in the Bridge case and confirmed a wider interpretation of the term ‘money purchase benefits’ than envisaged by the DWP under its current legislation. July 2011
An amendment to the Pensions Bill made on 14 July 2011 will prevent some schemes from having to revalue pensions in deferment using the higher of retail prices index (RPI) inflation and consumer prices index (CPI) inflation. July 2011
The European Insurance and Occupational Pensions Authority (EIOPA) is consulting on the advice that it should present to the European Commission in relation to changes to the 2003 Pensions Directive, which gave rise to the UK scheme-specific funding requirements. July 2011
The International Accounting Standards Board (IASB) has issued a ‘near final’ draft of an amendment to IAS 19, Employee Benefits. June 2011
The Pensions Regulator has published nine guidance notes as it steps up its communications on employers’ forthcoming duty to automatically enrol employees into a pension scheme. May 2011
The Pensions Regulator has said that it is appropriate to “revisit our strategy for regulating scheme funding” now that the scheme-specific funding regime has been in place for more than five years. In its Corporate Plan 2011-14, published on 21 April, the regulator says it will consult on a revised strategy in the autumn. April 2011
The European Commission has issued a call for advice to the European Insurance and Occupational Pensions Authority (EIOPA), the body representing regulators across Europe on how to update the Pensions Directive. This follows last year’s consultation on measures to deliver adequate, sustainable and safe pensions. April 2011
The Government has today provided further detail, in the form of draft clauses for the Finance Bill 2011, on how the reduced Annual and Lifetime Allowances (LTA) will operate, including, in relation to the latter, what protection will be available for existing benefits. December 2010
Earlier this year the DWP consulted on draft regulations consequent upon the abolition of contracting out on a defined contribution (DC) basis from 6 April 2012 (abolition date). As drafted, transfers from contracted-out salary-related schemes (COSRSs) to most DC arrangements would have been prohibited. November 2010
The Pensions Regulator published a statement setting out its approach to situations in which trustees may be at risk of breaching legal restrictions on employer-related investment (ERI). November 2010
The Pensions Minister, Steve Webb, has today announced that they will proceed with the reforms proposed by the independent review, Making automatic enrolment work. The Government established the review team in June 2010 to consider the scope for automatic enrolment and whether the National Employment Savings Trust (NEST) needs to be put in place for it to work. October 2010
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Department for Work and Pensions issued a consultation paper on draft legislative changes to implement the abolition of contracting out on a defined contribution (DC) basis. This affects some defined benefit plans which have chosen to contract out on the ‘protected rights’ basis, as well as contracted-out DC schemes. July 2010
The Government published a discussion document on its preferred approach to the tightening of tax relief on pension savings – a drastically reduced annual allowance (RAA). July 2010
The Pensions Regulator issued for consultation new Guidance on transfer incentives . A joint statement from the regulator and the Financial Services Authority (FSA) has also been published. July 2010
The Minister for Pensions has made a written statement on 8 July 2010 announcing that the measure for minimum increases to occupational pensions is to be switched to the Consumer Prices Index (CPI) from the Retail Prices Index (RPI). This follows the Chancellor of the Exchequer’s Budget announcement that public service pensions and State benefits would in future be increased this way July 2010
The European Commission today published a Green Paper, the aim of which is to consider how best to help Member States deliver adequate, sustainable and safe pensions. The Paper considers both State and private pensions (irrespective of whether or not funded) and their complicated interaction with demographic and economic change. July 2010
The Regulator launched a consultation on guidance, aimed primarily at trustees, on multi-employer schemes – particularly matters relating to employer debt. July 2010
The Department for Work and Pensions (DWP) announced today (24 June 2010) how it will approach making changes to the current legislation in respect of how and when to increase the State Pensions Age (SPA) to 66. In addition, it set out the scope of a review on how to implement automatic enrolment effectively. June 2010
The Pensions Regulator has issued a statement for trustees of defined benefit schemes setting out its expectations of trustees in relation to employer covenant issues and outlining plans for guidance on this subject and on transfer incentives that it will issue for consultation in the coming weeks. June 2010
In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) has issued its long-awaited Exposure Draft (ED) of proposed changes to IAS 19, Employee Benefits. April 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
On 30 March, the Pensions Regulator published its corporate plan for 2010-13. This includes new information on the regulator’s approach to scheme funding and to enhanced transfer value (ETV) exercises. March 2010
On 15 March, the DWP published the Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2010, which are planned to come into effect on 6 April 2010. These Regulations are the culmination of the Government’s consultation last autumn on proposals to ease the operation of the Employer Debt requirements in cases of restructuring within a group. March 2010
Long-awaited regulations have been published that extend the circumstances in which high income individuals may have their pension savings protected from the special annual allowance charge. This follows a Government commitment last year to consider whether protection should be extended to cover, for example, new pension arrangements agreed before, but not established until after, the 2009 Budget. February 2010
The Pensions Minister made a statement which could have significant cost implications for many defined benefit pension schemes, adding to the financial woes of the private and public sectors alike. In brief, legislation is to be brought forward which could require schemes to make specific adjustments to benefits to compensate for the effects of unequal GMPs. GMPs are ‘Guaranteed Minimum Pensions’, which a scheme that contracted out of the State Earnings-Related Pensions Scheme on the salary-related basis is required to provide for service before April 1997. January 2010
The DWP has published its response to the consultation on what employers will have to do to comply with the requirements for employers to automatically enrol employees into work-based pension schemes. Some final regulations have been laid before Parliament. January 2010
Corporate Finance DC
The Department for Work and Pensions (DWP) has announced the level of the earnings trigger and the qualifying earnings band to be used for automatic enrolment. Contributions under automatic enrolment must be paid on all earnings in the band if the member earns over the trigger. April 2012
The Department for Work and Pensions (DWP) has today begun a formal consultation on its proposed changes to the timetable for introducing automatic enrolment into workplace pensions. March 2012
The European Commission published its much delayed White Paper on adequate and sustainable retirement provision in Europe. This complements the Commission’s ongoing review of the ‘Pensions Directive’, which largely concerns matters relating to the security of retirement provision. February 2012
The European Insurance and Occupational Pensions Authority (EIOPA) yesterday (15 February 2012) responded formally to the European Commission's 'Call for Advice' in relation to its review of the 2003 Pensions Directive ('the IORP Directive'). February 2012
The Department for Work and Pensions (DWP) has today (1 February 2012) published documents confirming most of the final details of the rules in respect of automatic enrolment into workplace pensions. The documents set out changes that are made to regulations and provide revised guidance on the circumstances in which an employer can certify that their defined contribution (DC) scheme (or the DC element of their hybrid scheme) satisfies the quality requirements. February 2012
The Department for Work and Pensions has published draft revisions to the timetable on automatic enrolment into workplace pensions. As expected, it is also proposing slower phasing in of minimum contributions. The Pensions Minister told Parliament today that there would be no further changes to this timetable. January 2012
The Department for Work and Pensions (DWP) yesterday (15 December 2011) launched two consultations: December 2011
The Minister of State for Pensions, Steve Webb, announced further changes to the automatic enrolment timetable yesterday. November 2011
With gloom and doom pervading the economy, cheer must be taken wherever it can be found; and the absence of (further) fundamental changes to the tax regime for workplace-based pensions might be about as good as it gets. November 2011
The European Insurance and Occupational Pensions Authority (EIOPA) has published the second of its consultations on the advice it should present to the European Commission in relation to its review of the 2003 Pensions Directive (“the IORP directive”). October 2011
The Government yesterday (13 October) introduced a number of amendments to the Pensions Bill, the key ones being a delay of six months in the proposed increase of the State Pension Age (SPA) to 66 and an amendment to the definition of ‘money purchase benefits’. In addition, the Pensions Regulator has today issued a statement outlining the behaviour it expects from trustees of defined contribution (DC) schemes. October 2011
The Supreme Court yesterday (27 July 2011) rejected the Department for Work and Pensions’ (DWP) appeal in the Bridge case and confirmed a wider interpretation of the term ‘money purchase benefits’ than envisaged by the DWP under its current legislation. July 2011
The European Insurance and Occupational Pensions Authority (EIOPA) is consulting on the advice that it should present to the European Commission in relation to changes to the 2003 Pensions Directive, which gave rise to the UK scheme-specific funding requirements. July 2011
The Department for Work and Pensions (DWP) has issued principles-based good practice guidance on the governance of default options in DC arrangements to be used by an employer to meet its obligations with regard to automatic enrolment. Therefore, this guidance applies to both contract-based and trust-based DC arrangements. June 2011
The Pensions Regulator has published nine guidance notes as it steps up its communications on employers’ forthcoming duty to automatically enrol employees into a pension scheme. May 2011
The European Commission has issued a call for advice to the European Insurance and Occupational Pensions Authority (EIOPA), the body representing regulators across Europe on how to update the Pensions Directive. This follows last year’s consultation on measures to deliver adequate, sustainable and safe pensions. April 2011
From 6 April 2011 individuals with a lifetime pension income of at least £20,000 a year will be able to gain access to their money purchase pension funds under new rules unveiled today by HM Treasury. There will be no cap on the level of withdrawals that these individuals can make – a process to be known as ‘flexible drawdown’. For those that do not have this level of income the maximum withdrawal that they may make from their pension funds will be capped at 100 per cent of the equivalent annuity that could be bought with the fund value. The amounts will be determined every three years prior to age 75 and annually thereafter and there will be no minimum amount. December 2010
The Government has today provided further detail, in the form of draft clauses for the Finance Bill 2011, on how the reduced Annual and Lifetime Allowances (LTA) will operate, including, in relation to the latter, what protection will be available for existing benefits. December 2010
Earlier this year the DWP consulted on draft regulations consequent upon the abolition of contracting out on a defined contribution (DC) basis from 6 April 2012 (abolition date). As drafted, transfers from contracted-out salary-related schemes (COSRSs) to most DC arrangements would have been prohibited. November 2010
The industry-led Investment Governance Group (IGG) yesterday (4 November 2010) published its best practice guidance for defined contribution (DC) pension schemes, reflecting the growing importance of DC provision and that good governance is at the heart of a well-run pension scheme. The IGG was set up to encourage industry ownership and promotion of the Myners’ Principles and to take account of the characteristics of DC and the differences between trust-based and contract-based schemes. November 2010
The Pensions Minister, Steve Webb, has today announced that they will proceed with the reforms proposed by the independent review, Making automatic enrolment work. The Government established the review team in June 2010 to consider the scope for automatic enrolment and whether the National Employment Savings Trust (NEST) needs to be put in place for it to work. October 2010
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Department for Work and Pensions issued a consultation paper on draft legislative changes to implement the abolition of contracting out on a defined contribution (DC) basis. This affects some defined benefit plans which have chosen to contract out on the ‘protected rights’ basis, as well as contracted-out DC schemes. July 2010
The Government published a discussion document on its preferred approach to the tightening of tax relief on pension savings – a drastically reduced annual allowance (RAA). July 2010
The European Commission today published a Green Paper, the aim of which is to consider how best to help Member States deliver adequate, sustainable and safe pensions. The Paper considers both State and private pensions (irrespective of whether or not funded) and their complicated interaction with demographic and economic change. July 2010
The Department for Work and Pensions (DWP) announced today (24 June 2010) how it will approach making changes to the current legislation in respect of how and when to increase the State Pensions Age (SPA) to 66. In addition, it set out the scope of a review on how to implement automatic enrolment effectively. June 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
Long-awaited regulations have been published that extend the circumstances in which high income individuals may have their pension savings protected from the special annual allowance charge. This follows a Government commitment last year to consider whether protection should be extended to cover, for example, new pension arrangements agreed before, but not established until after, the 2009 Budget. February 2010
The Pensions Minister made a statement which could have significant cost implications for many defined benefit pension schemes, adding to the financial woes of the private and public sectors alike. In brief, legislation is to be brought forward which could require schemes to make specific adjustments to benefits to compensate for the effects of unequal GMPs. GMPs are ‘Guaranteed Minimum Pensions’, which a scheme that contracted out of the State Earnings-Related Pensions Scheme on the salary-related basis is required to provide for service before April 1997. January 2010
The DWP has published its response to the consultation on what employers will have to do to comply with the requirements for employers to automatically enrol employees into work-based pension schemes. Some final regulations have been laid before Parliament. January 2010
Corporate HR DB
The Department for Work and Pensions (DWP) has announced the level of the earnings trigger and the qualifying earnings band to be used for automatic enrolment. Contributions under automatic enrolment must be paid on all earnings in the band if the member earns over the trigger. April 2012
The Department for Work and Pensions (DWP) has today begun a formal consultation on its proposed changes to the timetable for introducing automatic enrolment into workplace pensions. March 2012
The European Insurance and Occupational Pensions Authority (EIOPA) yesterday (15 February 2012) responded formally to the European Commission's 'Call for Advice' in relation to its review of the 2003 Pensions Directive ('the IORP Directive'). February 2012
The Department for Work and Pensions (DWP) has today (1 February 2012) published documents confirming most of the final details of the rules in respect of automatic enrolment into workplace pensions. The documents set out changes that are made to regulations and provide revised guidance on the circumstances in which an employer can certify that their defined contribution (DC) scheme (or the DC element of their hybrid scheme) satisfies the quality requirements. February 2012
The Department for Work and Pensions has published draft revisions to the timetable on automatic enrolment into workplace pensions. As expected, it is also proposing slower phasing in of minimum contributions. The Pensions Minister told Parliament today that there would be no further changes to this timetable. January 2012
The Department for Work and Pensions (DWP) has today published draft amending legislation intended to make clear that pension scheme benefits must be equalised to compensate for the inherently unequal nature of guaranteed minimum pensions (GMPs) between men and women. This need to equalise would arise irrespective of whether a comparable employee of the opposite sex exists. January 2012
Following a consultation held in June 2011, the Government has issued new regulations introducing changes to the employer debt provisions. The main change is the introduction of Flexible Apportionment Arrangements (FAAs) as another alternative method of avoiding the default payment of a section 75 debt, when an employer with defined benefit liabilities leaves a multi-employer scheme. The regulations also make changes to the “period of grace” facility extending the time during which a debt trigger can be suspended. December 2011
The Department for Work and Pensions (DWP) yesterday (15 December 2011) launched two consultations: December 2011
The Minister of State for Pensions, Steve Webb, announced further changes to the automatic enrolment timetable yesterday. November 2011
With gloom and doom pervading the economy, cheer must be taken wherever it can be found; and the absence of (further) fundamental changes to the tax regime for workplace-based pensions might be about as good as it gets. November 2011
A Court of Justice of the European Union (CJEU) judgement published on the German case of KHS AG v Winfried Schultewill provides some comfort to employers considering the extent of their potential liability for holiday accrual by employees on long-term absence. November 2011
The European Insurance and Occupational Pensions Authority (EIOPA) has published the second of its consultations on the advice it should present to the European Commission in relation to its review of the 2003 Pensions Directive (“the IORP directive”). October 2011
The Government yesterday (13 October) introduced a number of amendments to the Pensions Bill, the key ones being a delay of six months in the proposed increase of the State Pension Age (SPA) to 66 and an amendment to the definition of ‘money purchase benefits’. In addition, the Pensions Regulator has today issued a statement outlining the behaviour it expects from trustees of defined contribution (DC) schemes. October 2011
The European Insurance and Occupational Pensions Authority (EIOPA) is consulting on the advice that it should present to the European Commission in relation to changes to the 2003 Pensions Directive, which gave rise to the UK scheme-specific funding requirements. July 2011
The Pensions Regulator has published nine guidance notes as it steps up its communications on employers’ forthcoming duty to automatically enrol employees into a pension scheme. May 2011
The Pensions Regulator has said that it is appropriate to “revisit our strategy for regulating scheme funding” now that the scheme-specific funding regime has been in place for more than five years. In its Corporate Plan 2011-14, published on 21 April, the regulator says it will consult on a revised strategy in the autumn. April 2011
The European Commission has issued a call for advice to the European Insurance and Occupational Pensions Authority (EIOPA), the body representing regulators across Europe on how to update the Pensions Directive. This follows last year’s consultation on measures to deliver adequate, sustainable and safe pensions. April 2011
The Government has today provided further detail, in the form of draft clauses for the Finance Bill 2011, on how the reduced Annual and Lifetime Allowances (LTA) will operate, including, in relation to the latter, what protection will be available for existing benefits. December 2010
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Government published a discussion document on its preferred approach to the tightening of tax relief on pension savings – a drastically reduced annual allowance (RAA). July 2010
The Pensions Regulator issued for consultation new Guidance on transfer incentives . A joint statement from the regulator and the Financial Services Authority (FSA) has also been published. July 2010
The Minister for Pensions has made a written statement on 8 July 2010 announcing that the measure for minimum increases to occupational pensions is to be switched to the Consumer Prices Index (CPI) from the Retail Prices Index (RPI). This follows the Chancellor of the Exchequer’s Budget announcement that public service pensions and State benefits would in future be increased this way July 2010
The European Commission today published a Green Paper, the aim of which is to consider how best to help Member States deliver adequate, sustainable and safe pensions. The Paper considers both State and private pensions (irrespective of whether or not funded) and their complicated interaction with demographic and economic change. July 2010
The Department for Work and Pensions (DWP) announced today (24 June 2010) how it will approach making changes to the current legislation in respect of how and when to increase the State Pensions Age (SPA) to 66. In addition, it set out the scope of a review on how to implement automatic enrolment effectively. June 2010
The Pensions Regulator has issued a statement for trustees of defined benefit schemes setting out its expectations of trustees in relation to employer covenant issues and outlining plans for guidance on this subject and on transfer incentives that it will issue for consultation in the coming weeks. June 2010
In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) has issued its long-awaited Exposure Draft (ED) of proposed changes to IAS 19, Employee Benefits. April 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
On 30 March, the Pensions Regulator published its corporate plan for 2010-13. This includes new information on the regulator’s approach to scheme funding and to enhanced transfer value (ETV) exercises. March 2010
On 15 March, the DWP published the Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2010, which are planned to come into effect on 6 April 2010. These Regulations are the culmination of the Government’s consultation last autumn on proposals to ease the operation of the Employer Debt requirements in cases of restructuring within a group. March 2010
Long-awaited regulations have been published that extend the circumstances in which high income individuals may have their pension savings protected from the special annual allowance charge. This follows a Government commitment last year to consider whether protection should be extended to cover, for example, new pension arrangements agreed before, but not established until after, the 2009 Budget. February 2010
The Pensions Minister made a statement which could have significant cost implications for many defined benefit pension schemes, adding to the financial woes of the private and public sectors alike. In brief, legislation is to be brought forward which could require schemes to make specific adjustments to benefits to compensate for the effects of unequal GMPs. GMPs are ‘Guaranteed Minimum Pensions’, which a scheme that contracted out of the State Earnings-Related Pensions Scheme on the salary-related basis is required to provide for service before April 1997. January 2010
The DWP has published its response to the consultation on what employers will have to do to comply with the requirements for employers to automatically enrol employees into work-based pension schemes. Some final regulations have been laid before Parliament. January 2010
Corporate HR DC
The Department for Work and Pensions (DWP) has announced the level of the earnings trigger and the qualifying earnings band to be used for automatic enrolment. Contributions under automatic enrolment must be paid on all earnings in the band if the member earns over the trigger. April 2012
The Department for Work and Pensions (DWP) has today begun a formal consultation on its proposed changes to the timetable for introducing automatic enrolment into workplace pensions. March 2012
Members of defined contribution (DC) pension arrangements, face a dramatic fall in their pensions projected under the Statutory Money Purchase Illustration (SMPI) rules effective from 6 April 2012. March 2012
The European Insurance and Occupational Pensions Authority (EIOPA) yesterday (15 February 2012) responded formally to the European Commission's 'Call for Advice' in relation to its review of the 2003 Pensions Directive ('the IORP Directive'). February 2012
The Department for Work and Pensions (DWP) has today (1 February 2012) published documents confirming most of the final details of the rules in respect of automatic enrolment into workplace pensions. The documents set out changes that are made to regulations and provide revised guidance on the circumstances in which an employer can certify that their defined contribution (DC) scheme (or the DC element of their hybrid scheme) satisfies the quality requirements. February 2012
The Department for Work and Pensions has published draft revisions to the timetable on automatic enrolment into workplace pensions. As expected, it is also proposing slower phasing in of minimum contributions. The Pensions Minister told Parliament today that there would be no further changes to this timetable. January 2012
The Department for Work and Pensions (DWP) yesterday (15 December 2011) launched two consultations: December 2011
The Minister of State for Pensions, Steve Webb, announced further changes to the automatic enrolment timetable yesterday. November 2011
With gloom and doom pervading the economy, cheer must be taken wherever it can be found; and the absence of (further) fundamental changes to the tax regime for workplace-based pensions might be about as good as it gets. November 2011
A Court of Justice of the European Union (CJEU) judgement published on the German case of KHS AG v Winfried Schultewill provides some comfort to employers considering the extent of their potential liability for holiday accrual by employees on long-term absence. November 2011
The European Insurance and Occupational Pensions Authority (EIOPA) has published the second of its consultations on the advice it should present to the European Commission in relation to its review of the 2003 Pensions Directive (“the IORP directive”). October 2011
The Government yesterday (13 October) introduced a number of amendments to the Pensions Bill, the key ones being a delay of six months in the proposed increase of the State Pension Age (SPA) to 66 and an amendment to the definition of ‘money purchase benefits’. In addition, the Pensions Regulator has today issued a statement outlining the behaviour it expects from trustees of defined contribution (DC) schemes. October 2011
The European Insurance and Occupational Pensions Authority (EIOPA) is consulting on the advice that it should present to the European Commission in relation to changes to the 2003 Pensions Directive, which gave rise to the UK scheme-specific funding requirements. July 2011
The Department for Work and Pensions (DWP) has issued principles-based good practice guidance on the governance of default options in DC arrangements to be used by an employer to meet its obligations with regard to automatic enrolment. Therefore, this guidance applies to both contract-based and trust-based DC arrangements. June 2011
The Pensions Regulator has published nine guidance notes as it steps up its communications on employers’ forthcoming duty to automatically enrol employees into a pension scheme. May 2011
The European Commission has issued a call for advice to the European Insurance and Occupational Pensions Authority (EIOPA), the body representing regulators across Europe on how to update the Pensions Directive. This follows last year’s consultation on measures to deliver adequate, sustainable and safe pensions. April 2011
From 6 April 2011 individuals with a lifetime pension income of at least £20,000 a year will be able to gain access to their money purchase pension funds under new rules unveiled today by HM Treasury. There will be no cap on the level of withdrawals that these individuals can make – a process to be known as ‘flexible drawdown’. For those that do not have this level of income the maximum withdrawal that they may make from their pension funds will be capped at 100 per cent of the equivalent annuity that could be bought with the fund value. The amounts will be determined every three years prior to age 75 and annually thereafter and there will be no minimum amount. December 2010
The Government has today provided further detail, in the form of draft clauses for the Finance Bill 2011, on how the reduced Annual and Lifetime Allowances (LTA) will operate, including, in relation to the latter, what protection will be available for existing benefits. December 2010
The industry-led Investment Governance Group (IGG) yesterday (4 November 2010) published its best practice guidance for defined contribution (DC) pension schemes, reflecting the growing importance of DC provision and that good governance is at the heart of a well-run pension scheme. The IGG was set up to encourage industry ownership and promotion of the Myners’ Principles and to take account of the characteristics of DC and the differences between trust-based and contract-based schemes. November 2010
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Government published a discussion document on its preferred approach to the tightening of tax relief on pension savings – a drastically reduced annual allowance (RAA). July 2010
The Government has published a consultation paper on proposals to remove the requirement to purchase an annuity by age 75 and, in certain circumstances, to allow individuals to take more of their pension savings as a lump sum. July 2010
The European Commission today published a Green Paper, the aim of which is to consider how best to help Member States deliver adequate, sustainable and safe pensions. The Paper considers both State and private pensions (irrespective of whether or not funded) and their complicated interaction with demographic and economic change. July 2010
The Department for Work and Pensions (DWP) announced today (24 June 2010) how it will approach making changes to the current legislation in respect of how and when to increase the State Pensions Age (SPA) to 66. In addition, it set out the scope of a review on how to implement automatic enrolment effectively. June 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
Long-awaited regulations have been published that extend the circumstances in which high income individuals may have their pension savings protected from the special annual allowance charge. This follows a Government commitment last year to consider whether protection should be extended to cover, for example, new pension arrangements agreed before, but not established until after, the 2009 Budget. February 2010
The joint Government-industry Investment Governance Group (IGG) issued a consultation paper on its proposals to improve the investment governance of Defined Contribution (DC) pension schemes. These proposals cover all forms of work-based DC provision, from trust-based to contract-based and also AVCs. February 2010
The Pensions Minister made a statement which could have significant cost implications for many defined benefit pension schemes, adding to the financial woes of the private and public sectors alike. In brief, legislation is to be brought forward which could require schemes to make specific adjustments to benefits to compensate for the effects of unequal GMPs. GMPs are ‘Guaranteed Minimum Pensions’, which a scheme that contracted out of the State Earnings-Related Pensions Scheme on the salary-related basis is required to provide for service before April 1997. January 2010
The DWP has published its response to the consultation on what employers will have to do to comply with the requirements for employers to automatically enrol employees into work-based pension schemes. Some final regulations have been laid before Parliament. January 2010
Trustee DB
The Department for Work and Pensions (DWP) has announced the level of the earnings trigger and the qualifying earnings band to be used for automatic enrolment. Contributions under automatic enrolment must be paid on all earnings in the band if the member earns over the trigger. April 2012
The Department for Work and Pensions (DWP) has today begun a formal consultation on its proposed changes to the timetable for introducing automatic enrolment into workplace pensions. March 2012
The European Commission published its much delayed White Paper on adequate and sustainable retirement provision in Europe. This complements the Commission’s ongoing review of the ‘Pensions Directive’, which largely concerns matters relating to the security of retirement provision. February 2012
The European Insurance and Occupational Pensions Authority (EIOPA) yesterday (15 February 2012) responded formally to the European Commission's 'Call for Advice' in relation to its review of the 2003 Pensions Directive ('the IORP Directive'). February 2012
The Department for Work and Pensions (DWP) has today (1 February 2012) published documents confirming most of the final details of the rules in respect of automatic enrolment into workplace pensions. The documents set out changes that are made to regulations and provide revised guidance on the circumstances in which an employer can certify that their defined contribution (DC) scheme (or the DC element of their hybrid scheme) satisfies the quality requirements. February 2012
The Department for Work and Pensions has published draft revisions to the timetable on automatic enrolment into workplace pensions. As expected, it is also proposing slower phasing in of minimum contributions. The Pensions Minister told Parliament today that there would be no further changes to this timetable. January 2012
The Department for Work and Pensions (DWP) has today published draft amending legislation intended to make clear that pension scheme benefits must be equalised to compensate for the inherently unequal nature of guaranteed minimum pensions (GMPs) between men and women. This need to equalise would arise irrespective of whether a comparable employee of the opposite sex exists. January 2012
Following a consultation held in June 2011, the Government has issued new regulations introducing changes to the employer debt provisions. The main change is the introduction of Flexible Apportionment Arrangements (FAAs) as another alternative method of avoiding the default payment of a section 75 debt, when an employer with defined benefit liabilities leaves a multi-employer scheme. The regulations also make changes to the “period of grace” facility extending the time during which a debt trigger can be suspended. December 2011
The Department for Work and Pensions (DWP) yesterday (15 December 2011) launched two consultations: December 2011
On 13 December 2011, the Pension Protection Fund (PPF) published its final Determination setting out how schemes’ pension protection levies will be determined for the year beginning 1 April 2012. There are few changes from the draft Determination published in September 2011. The formula, including scaling factors, is intended to be fixed for three years at a time. December 2011
HM Revenue & Customs (HMRC) announced yesterday (6 December 2011) that funds of £2,000 or less held in personal pension arrangements will, from 6 April 2012, be able to be paid out as lump sums to individuals aged 60 or over. These payments will be authorised provided certain conditions are met. December 2011
The Minister of State for Pensions, Steve Webb, announced further changes to the automatic enrolment timetable yesterday. November 2011
With gloom and doom pervading the economy, cheer must be taken wherever it can be found; and the absence of (further) fundamental changes to the tax regime for workplace-based pensions might be about as good as it gets. November 2011
The European Insurance and Occupational Pensions Authority (EIOPA) has published the second of its consultations on the advice it should present to the European Commission in relation to its review of the 2003 Pensions Directive (“the IORP directive”). October 2011
The Government yesterday (13 October) introduced a number of amendments to the Pensions Bill, the key ones being a delay of six months in the proposed increase of the State Pension Age (SPA) to 66 and an amendment to the definition of ‘money purchase benefits’. In addition, the Pensions Regulator has today issued a statement outlining the behaviour it expects from trustees of defined contribution (DC) schemes. October 2011
The Pension Protection Fund (PPF) published its draft Determination setting out how schemes’ pension protection levies will be determined for the year beginning 1 April 2012. The new framework is broadly the same as the proposals published in May 2011. The formula, including scaling factors, is intended to be fixed for three years at a time. September 2011
The Supreme Court yesterday (27 July 2011) rejected the Department for Work and Pensions’ (DWP) appeal in the Bridge case and confirmed a wider interpretation of the term ‘money purchase benefits’ than envisaged by the DWP under its current legislation. July 2011
An amendment to the Pensions Bill made on 14 July 2011 will prevent some schemes from having to revalue pensions in deferment using the higher of retail prices index (RPI) inflation and consumer prices index (CPI) inflation. July 2011
The European Insurance and Occupational Pensions Authority (EIOPA) is consulting on the advice that it should present to the European Commission in relation to changes to the 2003 Pensions Directive, which gave rise to the UK scheme-specific funding requirements. July 2011
The Pensions Regulator has said that it is appropriate to “revisit our strategy for regulating scheme funding” now that the scheme-specific funding regime has been in place for more than five years. In its Corporate Plan 2011-14, published on 21 April, the regulator says it will consult on a revised strategy in the autumn. April 2011
The European Commission has issued a call for advice to the European Insurance and Occupational Pensions Authority (EIOPA), the body representing regulators across Europe on how to update the Pensions Directive. This follows last year’s consultation on measures to deliver adequate, sustainable and safe pensions. April 2011
The Government has today provided further detail, in the form of draft clauses for the Finance Bill 2011, on how the reduced Annual and Lifetime Allowances (LTA) will operate, including, in relation to the latter, what protection will be available for existing benefits. December 2010
The Government has today confirmed that, in some circumstances, people exceeding the reduced annual allowance (AA) on pension savings will be able to insist that the resulting tax bills are met from their pension pot – a “scheme pays” facility. November 2010
The Pensions Regulator published a statement setting out its approach to situations in which trustees may be at risk of breaching legal restrictions on employer-related investment (ERI). November 2010
The industry-led Investment Governance Group (IGG) yesterday (4 November 2010) published its best practice guidance for defined contribution (DC) pension schemes, reflecting the growing importance of DC provision and that good governance is at the heart of a well-run pension scheme. The IGG was set up to encourage industry ownership and promotion of the Myners’ Principles and to take account of the characteristics of DC and the differences between trust-based and contract-based schemes. November 2010
The Pensions Minister, Steve Webb, has today announced that they will proceed with the reforms proposed by the independent review, Making automatic enrolment work. The Government established the review team in June 2010 to consider the scope for automatic enrolment and whether the National Employment Savings Trust (NEST) needs to be put in place for it to work. October 2010
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Department for Work and Pensions issued a consultation paper on draft legislative changes to implement the abolition of contracting out on a defined contribution (DC) basis. This affects some defined benefit plans which have chosen to contract out on the ‘protected rights’ basis, as well as contracted-out DC schemes. July 2010
The Government published a discussion document on its preferred approach to the tightening of tax relief on pension savings – a drastically reduced annual allowance (RAA). July 2010
The Government has published a consultation paper on proposals to remove the requirement to purchase an annuity by age 75 and, in certain circumstances, to allow individuals to take more of their pension savings as a lump sum. July 2010
The Pensions Regulator issued for consultation new Guidance on transfer incentives . A joint statement from the regulator and the Financial Services Authority (FSA) has also been published. July 2010
The Minister for Pensions has made a written statement on 8 July 2010 announcing that the measure for minimum increases to occupational pensions is to be switched to the Consumer Prices Index (CPI) from the Retail Prices Index (RPI). This follows the Chancellor of the Exchequer’s Budget announcement that public service pensions and State benefits would in future be increased this way July 2010
The European Commission today published a Green Paper, the aim of which is to consider how best to help Member States deliver adequate, sustainable and safe pensions. The Paper considers both State and private pensions (irrespective of whether or not funded) and their complicated interaction with demographic and economic change. July 2010
The Regulator launched a consultation on guidance, aimed primarily at trustees, on multi-employer schemes – particularly matters relating to employer debt. July 2010
The Department for Work and Pensions (DWP) announced today (24 June 2010) how it will approach making changes to the current legislation in respect of how and when to increase the State Pensions Age (SPA) to 66. In addition, it set out the scope of a review on how to implement automatic enrolment effectively. June 2010
The Pensions Regulator has issued a statement for trustees of defined benefit schemes setting out its expectations of trustees in relation to employer covenant issues and outlining plans for guidance on this subject and on transfer incentives that it will issue for consultation in the coming weeks. June 2010
In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) has issued its long-awaited Exposure Draft (ED) of proposed changes to IAS 19, Employee Benefits. April 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
On 30 March, the Pensions Regulator published its corporate plan for 2010-13. This includes new information on the regulator’s approach to scheme funding and to enhanced transfer value (ETV) exercises. March 2010
On 15 March, the DWP published the Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2010, which are planned to come into effect on 6 April 2010. These Regulations are the culmination of the Government’s consultation last autumn on proposals to ease the operation of the Employer Debt requirements in cases of restructuring within a group. March 2010
Long-awaited regulations have been published that extend the circumstances in which high income individuals may have their pension savings protected from the special annual allowance charge. This follows a Government commitment last year to consider whether protection should be extended to cover, for example, new pension arrangements agreed before, but not established until after, the 2009 Budget. February 2010
The joint Government-industry Investment Governance Group (IGG) issued a consultation paper on its proposals to improve the investment governance of Defined Contribution (DC) pension schemes. These proposals cover all forms of work-based DC provision, from trust-based to contract-based and also AVCs. February 2010
On 2 February the Pensions Regulator published a consultation setting out standards for member records and requiring schemes that fall short to take steps to improve their performance. The consultation builds on guidance published in January last year, which provided a framework for the clarification and assessment of member records and follows extensive research over 2009. February 2010
The Pensions Minister made a statement which could have significant cost implications for many defined benefit pension schemes, adding to the financial woes of the private and public sectors alike. In brief, legislation is to be brought forward which could require schemes to make specific adjustments to benefits to compensate for the effects of unequal GMPs. GMPs are ‘Guaranteed Minimum Pensions’, which a scheme that contracted out of the State Earnings-Related Pensions Scheme on the salary-related basis is required to provide for service before April 1997. January 2010
The DWP has published its response to the consultation on what employers will have to do to comply with the requirements for employers to automatically enrol employees into work-based pension schemes. Some final regulations have been laid before Parliament. January 2010
Trustee DC
The Department for Work and Pensions (DWP) has announced the level of the earnings trigger and the qualifying earnings band to be used for automatic enrolment. Contributions under automatic enrolment must be paid on all earnings in the band if the member earns over the trigger. April 2012
The Department for Work and Pensions (DWP) has today begun a formal consultation on its proposed changes to the timetable for introducing automatic enrolment into workplace pensions. March 2012
Members of defined contribution (DC) pension arrangements, face a dramatic fall in their pensions projected under the Statutory Money Purchase Illustration (SMPI) rules effective from 6 April 2012. March 2012
The European Insurance and Occupational Pensions Authority (EIOPA) yesterday (15 February 2012) responded formally to the European Commission's 'Call for Advice' in relation to its review of the 2003 Pensions Directive ('the IORP Directive'). February 2012
The Department for Work and Pensions (DWP) has today (1 February 2012) published documents confirming most of the final details of the rules in respect of automatic enrolment into workplace pensions. The documents set out changes that are made to regulations and provide revised guidance on the circumstances in which an employer can certify that their defined contribution (DC) scheme (or the DC element of their hybrid scheme) satisfies the quality requirements. February 2012
The Department for Work and Pensions has published draft revisions to the timetable on automatic enrolment into workplace pensions. As expected, it is also proposing slower phasing in of minimum contributions. The Pensions Minister told Parliament today that there would be no further changes to this timetable. January 2012
The Department for Work and Pensions (DWP) yesterday (15 December 2011) launched two consultations: December 2011
HM Revenue & Customs (HMRC) announced yesterday (6 December 2011) that funds of £2,000 or less held in personal pension arrangements will, from 6 April 2012, be able to be paid out as lump sums to individuals aged 60 or over. These payments will be authorised provided certain conditions are met. December 2011
The Minister of State for Pensions, Steve Webb, announced further changes to the automatic enrolment timetable yesterday. November 2011
With gloom and doom pervading the economy, cheer must be taken wherever it can be found; and the absence of (further) fundamental changes to the tax regime for workplace-based pensions might be about as good as it gets. November 2011
The European Insurance and Occupational Pensions Authority (EIOPA) has published the second of its consultations on the advice it should present to the European Commission in relation to its review of the 2003 Pensions Directive (“the IORP directive”). October 2011
The Government yesterday (13 October) introduced a number of amendments to the Pensions Bill, the key ones being a delay of six months in the proposed increase of the State Pension Age (SPA) to 66 and an amendment to the definition of ‘money purchase benefits’. In addition, the Pensions Regulator has today issued a statement outlining the behaviour it expects from trustees of defined contribution (DC) schemes. October 2011
The Supreme Court yesterday (27 July 2011) rejected the Department for Work and Pensions’ (DWP) appeal in the Bridge case and confirmed a wider interpretation of the term ‘money purchase benefits’ than envisaged by the DWP under its current legislation. July 2011
The European Insurance and Occupational Pensions Authority (EIOPA) is consulting on the advice that it should present to the European Commission in relation to changes to the 2003 Pensions Directive, which gave rise to the UK scheme-specific funding requirements. July 2011
The Department for Work and Pensions (DWP) has issued principles-based good practice guidance on the governance of default options in DC arrangements to be used by an employer to meet its obligations with regard to automatic enrolment. Therefore, this guidance applies to both contract-based and trust-based DC arrangements. June 2011
The European Commission has issued a call for advice to the European Insurance and Occupational Pensions Authority (EIOPA), the body representing regulators across Europe on how to update the Pensions Directive. This follows last year’s consultation on measures to deliver adequate, sustainable and safe pensions. April 2011
From 6 April 2011 individuals with a lifetime pension income of at least £20,000 a year will be able to gain access to their money purchase pension funds under new rules unveiled today by HM Treasury. There will be no cap on the level of withdrawals that these individuals can make – a process to be known as ‘flexible drawdown’. For those that do not have this level of income the maximum withdrawal that they may make from their pension funds will be capped at 100 per cent of the equivalent annuity that could be bought with the fund value. The amounts will be determined every three years prior to age 75 and annually thereafter and there will be no minimum amount. December 2010
The Government has today provided further detail, in the form of draft clauses for the Finance Bill 2011, on how the reduced Annual and Lifetime Allowances (LTA) will operate, including, in relation to the latter, what protection will be available for existing benefits. December 2010
The Government has today confirmed that, in some circumstances, people exceeding the reduced annual allowance (AA) on pension savings will be able to insist that the resulting tax bills are met from their pension pot – a “scheme pays” facility. November 2010
The industry-led Investment Governance Group (IGG) yesterday (4 November 2010) published its best practice guidance for defined contribution (DC) pension schemes, reflecting the growing importance of DC provision and that good governance is at the heart of a well-run pension scheme. The IGG was set up to encourage industry ownership and promotion of the Myners’ Principles and to take account of the characteristics of DC and the differences between trust-based and contract-based schemes. November 2010
The Pensions Minister, Steve Webb, has today announced that they will proceed with the reforms proposed by the independent review, Making automatic enrolment work. The Government established the review team in June 2010 to consider the scope for automatic enrolment and whether the National Employment Savings Trust (NEST) needs to be put in place for it to work. October 2010
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Department for Work and Pensions issued a consultation paper on draft legislative changes to implement the abolition of contracting out on a defined contribution (DC) basis. This affects some defined benefit plans which have chosen to contract out on the ‘protected rights’ basis, as well as contracted-out DC schemes. July 2010
The Government published a discussion document on its preferred approach to the tightening of tax relief on pension savings – a drastically reduced annual allowance (RAA). July 2010
The Government has published a consultation paper on proposals to remove the requirement to purchase an annuity by age 75 and, in certain circumstances, to allow individuals to take more of their pension savings as a lump sum. July 2010
The European Commission today published a Green Paper, the aim of which is to consider how best to help Member States deliver adequate, sustainable and safe pensions. The Paper considers both State and private pensions (irrespective of whether or not funded) and their complicated interaction with demographic and economic change. July 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
Long-awaited regulations have been published that extend the circumstances in which high income individuals may have their pension savings protected from the special annual allowance charge. This follows a Government commitment last year to consider whether protection should be extended to cover, for example, new pension arrangements agreed before, but not established until after, the 2009 Budget. February 2010
The joint Government-industry Investment Governance Group (IGG) issued a consultation paper on its proposals to improve the investment governance of Defined Contribution (DC) pension schemes. These proposals cover all forms of work-based DC provision, from trust-based to contract-based and also AVCs. February 2010
On 2 February the Pensions Regulator published a consultation setting out standards for member records and requiring schemes that fall short to take steps to improve their performance. The consultation builds on guidance published in January last year, which provided a framework for the clarification and assessment of member records and follows extensive research over 2009. February 2010
The Pensions Minister made a statement which could have significant cost implications for many defined benefit pension schemes, adding to the financial woes of the private and public sectors alike. In brief, legislation is to be brought forward which could require schemes to make specific adjustments to benefits to compensate for the effects of unequal GMPs. GMPs are ‘Guaranteed Minimum Pensions’, which a scheme that contracted out of the State Earnings-Related Pensions Scheme on the salary-related basis is required to provide for service before April 1997. January 2010
The DWP has published its response to the consultation on what employers will have to do to comply with the requirements for employers to automatically enrol employees into work-based pension schemes. Some final regulations have been laid before Parliament. January 2010
UK Healthcare
The Government published a consultation on the removal of the default retirement age (DRA), together with a summary of responses to its call for evidence on this subject from last year. July 2010
The Department for Work and Pensions issued a consultation paper on draft legislative changes to implement the abolition of contracting out on a defined contribution (DC) basis. This affects some defined benefit plans which have chosen to contract out on the ‘protected rights’ basis, as well as contracted-out DC schemes. July 2010
The Department for Work and Pensions (DWP) announced today (24 June 2010) how it will approach making changes to the current legislation in respect of how and when to increase the State Pensions Age (SPA) to 66. In addition, it set out the scope of a review on how to implement automatic enrolment effectively. June 2010
The Equality Bill completed its passage through the Houses of Parliament late on 7 April 2010 and has now received Royal Assent. The Equality Bill will now be known as The Equality Act 2010 (the Act). April 2010
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