Pensions: what's new this week - June 3, 2024

HMRC Pension schemes newsletter 160

HMRC’s latest Pension Schemes Newsletter (no. 160) includes a link to a tool for members who are considering whether to apply for a transitional tax-free amount certificate from their scheme (in connection with the abolition of the lifetime allowance), together with reminders for scheme administrators about what information such a certificate should contain.

The newsletter also includes information on payroll reporting for tax year 2024/25 (including further information on the reporting of certain types of authorised lump sum); relief at source return deadlines for 2023/24, and how to contact HMRC in relation to various categories of query.

Read the newsletter

Work and pensions committee: key points from Norton Inquiry

As a result of the calling of a general election, the inquiry by the House of Commons Work and Pensions Committee into the collapse of the Norton pension schemes will not result in a formal report. A letter to the Secretary of State for Work and Pensions from the Chair of the Committee, Sir Stephen Timms, sets out key issues to help identify possible areas to be addressed in the next Parliament.

These include:

• whether the remit of the Pensions Regulator (TPR) should be extended to include pensions administrators (noting that TPR is currently working with large administrators to develop a voluntary supervisory regime);
• whether TPR should have direct rule-making powers to enable it to respond more quickly to emerging risks, rather than requiring Parliamentary time to produce new legislation;
• the funding of the Pensions Ombudsman; and whether changes should be made to the Fraud Compensation Fund to simplify and speed up the process for obtaining compensation in pension liberation/scam cases.

Read the letter

Changes to PPF valuation assumptions for smaller schemes

The PPF has published an initial response to its recent consultation on changes to the actuarial assumptions for section 143 and section 152 valuations. This relates to smaller schemes (with less than GBP 50 million in liabilities) which might, on the previous assumptions, be marginally overfunded (and therefore ineligible for PPF entry) but still be unable to obtain an affordable buy-out quotation for PPF levels of compensation.

The PPF has decided to implement the proposed changes and the new assumptions guidance will take effect from May 31, 2024.

Read the consultation response