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Pensions: Joint DB and DC Trustee agenda for July meetings
TPR: annual funding statement
In its annual funding statement, the Pensions Regulator (TPR) urged all trustees to review their funding and investment strategies following potentially significant changes due to market conditions over the last two years (read more).
The statement also noted that trustees may be asked, in the light of improved funding, to allow employers to reduce or suspend contributions, or to provide members with discretionary increases, and listed a series of factors for trustees to consider in relation to such requests.
ACTION: Read the annual funding statement and consider how TPR's commentary applies to your scheme.
TPR review of climate change reporting
TPR has published a review of pension scheme climate change reports, providing commentary on its expectations. TPR’s comments will be useful for schemes when drafting future reports (read more).
ACTION: Read TPR's report and consider whether any updates are required to your climate change reporting.
Pensions dashboards: staging timetable and standards published
The government has published the staging timetable for schemes to connect to pensions dashboards (read more).
The mandatory deadline for all in-scope schemes and providers to be connected to the pensions dashboards ecosystem is 31 October 2026, but schemes are expected to connect by the earlier date in this timetable. Trustees and providers are legally required to have regard to the guidance and should be able to demonstrate, if required, how they have complied with this requirement.
Separately, the Pensions Dashboards Programme has published updated data standards for pensions dashboards, setting out the data requirements for finding and viewing pensions information (read more). Other technical, reporting and design standards will follow.
ACTION: Confirm the staging date for your scheme and ensure that plans are in place to connect to the pensions dashboards ecosystem and meet the standards by that date.
Further adjustments to rules replacing LTA
From 6 April 2024, the lifetime allowance was replaced by a new framework featuring two key allowances: the lump sum allowance and the lump sum and death benefit allowance.
Further changes to the legislation are expected in due course, with retrospective effect; HMRC has also published numerous FAQs explaining various practical and technical details of the new rules (read more).
ACTION: Update member communications and processes as appropriate to reflect the changes.
Carer’s leave: new right from 6 April 2024
From 6 April 2024, employees who have a dependant with a long-term care need have a right to take one week’s unpaid leave to provide or arrange care in any 12-month period (read more).
All terms and conditions, apart from the right to remuneration, continue during carer’s leave, meaning that accrual and employer contributions also continue (based on notional pay). This differs from the position for other types of unpaid family leave. Scheme rules will, in many cases, provide sufficient flexibility to cover this, but you may wish to address it specifically as part of a future rule amendment.
ACTION: Note the position for carer's leave and consider whether a rule amendment may be required.
Watch this space
- The new DB funding framework is scheduled to apply to scheme valuations on and after 22 September 2024, although, due to the timing of the General Election, it is unclear whether the new Code of Practice can be brought into effect by that date.
- There is currently on date for revised regulations on changes to the notifiable events regime (read more)
- The Chair of the House of Commons Work and Pensions Committee has identified key areas for potential intervention in the next Parliament, including whether TPR's remit should be extended to cover pensions administrators and whether TPR should have direct rule-making powers to enable it to respond more quickly to emerging ricks (read more).
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