Issue 23 - May 2008
New powers for the Pensions Regulator
The last few weeks have seen some flexing of themuscles by the Pensions Regulator (TPR) and some proposed new powers that would allow for further flexing in the future. Last year,TPR intervened to appoint three independent trustees to the GEC 1972 Pension Plan to ensure the protection ofmembers’ interests following the take-over of telent (the sponsoring employer) by Pensions Corporation. InApril, Pensions Corporation reached an agreement with TPR that it would not seek to appoint its own employees as trustees to the pension scheme without the consent of TPR, and that it would not seek consent to any appointment for at least eighteenmonths. read more -->

Issue 22 - March 2008
The Pensions Regulator: Consultation, Consultation, Consultation
In the space of only 15 days, the Pensions Regulator (TPR) has published three major consultation papers - on longevity assumptions, conflicts of interest and winding up. It did at least have some help with the third of these as the consultation was issued jointly with the Department for Work and Pensions (DWP) and the Pension Protection Fund (PPF). read more -->

Issue 21 - January 2008
The Pension Protection Fund announces its levy plans for 2008/9 and beyond
On 29 November 2007, the Board of the Pension Protection Fund (PPF) published its plans for the pension protection levy for 2008/09 and beyond.Whilst the PPF indicated that it would consider any responses received to its proposals by 11 January, it made clear that it viewed its proposals as ‘firm’ and therefore we do not expect any significant changes at this stage. read more -->

Issue 20 - November 2007
The Government announces its future plans for pensions
The Government has recently made a number of announcements about its future plans for pensions. Most recently, the Queen's Speech on 6 November announced a new Pensions Bill to "place a duty on every employer to contribute to good quality workplace pensions for their employees". This will require employers to enrol their employees automatically into a new system of personal accounts, unless the employer already provides an adequate pension scheme for them. Now that the Conservatives have indicated that they have some concerns with the proposals for personal accounts as they currently stand, we can look forward to some interesting debates in Parliament. read more -->

Issue 19 - September 2007
The Pension Protection Fund consults on its plans for the risk-based levy
The usually lazy days of August saw the publication of two major consultations.The first to come out (on employer debt) is considered below; the second was on the future development of the Pension Protection Fund (PPF) levy from 2008/9 onwards. This consultation comes as the first phase of the PPF levy is coming to an end.All schemes (except new ones set up since 6 April 2007) will be required to provide a section 179 valuation for the calculation of risk-based levies by 31 March 2008 and so there will no longer be a possibility of relying on a converted MFR valuation for future levy years. read more -->

Issue 18 - July 2007
The Pensions Regulator indicates its intention to issue its first Financial Support Directions
When the Pensions Regulator replaced the Occupational Pensions Regulatory Authority (Opra) in April 2005, much was made of the fact that this was a regulator with teeth.Unlike its predecessor, it was given explicit powers to deal with employers who might be trying to avoid their obligations to their pension schemes. Chief among these moral hazard or anti-avoidance powers were Contribution Notices and Financial Support Directions.We have yet to see the first Contribution Notice (a demand for immediate payment where there has been a deliberate attempt to avoid an employer’s obligation to a scheme), but the first Financial Support Directions (FSDs) are now imminent. read more -->

Issue 17 - May 2007
The Pensions Regulator issues further guidance
Over the last few weeks, the Pensions Regulator has issued a flurry of paperwork for trustees, companies and advisors to sift through.These include a number of important pieces of guidance and papers for discussion and provide an insight into the way in which the Regulator’s risk-based regime is developing. In addition to the themes discussed in these papers, the Regulator has also been playing an active role in improving the funding of defined benefit schemes through its role in the scheme funding process (see later in this Technical Bulletin). read more -->

Issue 16 - March 2007
Consultations Issued on the Deregulatory and Institutional Reviews
In its White Paper of May 2006 (‘Security in retirement: towards a new pensions system’), the Department for Work and Pensions (DWP) announced its intention to set up a rolling deregulatory review of pension regulations and to review the organisations responsible for the regulation and protection of UK pension schemes.
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Issue 15 - January 2007
Pension Protection Fund Consults on 2007/8 Levy Estimate
In December 2006, the Pension Protection Fund (PPF) published a further consultation document on the pension protection levy for 2007/8 (following an earlier consultation in September). This indicates that the PPF expects to raise £675 million in 2007/8, 80% (£540 million) from the risk-based element of the levy and 20% (£135 million) from the scheme-based element. This compares with the estimate of £575 million for 2006/7, of which the PPF now expects to collect only £300-£320 million. The reason for this substantial shortfall arises partly as a result of equity market conditions at the time the levy was calculated and partly because employers took active steps to reduce their liabilities.
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Issue 14 - November 2006
Final age discrimination regulations published
On Friday 10 November 2006, the Department for Work and Pensions (DWP) published final regulations to amend the legislation on age discrimination as it affects pension schemes. These regulations had previously been subject to a brief consultation in mid October. Trustees are at last in a position to be able to judge what action may be needed in their schemes to deal with discriminatory rules and practices.
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Issue 13 - September 2006
The Pensions Regulator issues guidance on Member-Nominated Trustees and Directors
The Pensions Regulator issued guidance on member-nominated trustees (MNTs) and member-nominated directors (MNDs) on its website on 15 August 2006. This complements the Code of Practice on ‘Member-nominated trustees and directors – putting arrangements in place’ which was laid before parliament in July and which covers the new requirements for trustee bodies to consist of at least one third MNTs/MNDs. The guidance covers three main areas: exemptions from the requirements, transitional provisions for existing schemes and practical guidance on implementing MNT/MND arrangements.
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Issue 12 - July 2006
Ammendments proposed to FRS17
The cost of providing a defined benefit pension scheme has become a more prominent item in company accounts in recent years, with FRS17 now being implemented in full for accounting periods ending on or after 1 January 2005. The Accounting Standards Board (ASB) is at present involved in a wide-ranging research project addressing the fundamental principles of pensions accounting (and has recently published an update on its discussions to date).Whilst that project is underway, they have also launched a consultation on the disclosure requirements under FRS17 with comments invited by 11 September 2006.
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Developments in the buy-out market - 27 June 2006
The bulk annuity market has recently been dominated by just two firms, Legal & General and Prudential. However, this duopoly is set to end with dramatic changes now hitting this market as a significant number of new companies try to enter the market. This should give Trustees more choice when pursuing a bulk annuity purchase but we believe is unlikely to lead to significant pricing changes. read more -->

Issue 11 - May 2006
Age discrimination regulations made
Final age discrimination regulations have now been made and will come into force on 1 October 2006. These regulations are the final stage in the UK Government’s implementation of the European Employment Directive, which has already given rise to legislation against discrimination on the grounds of disability, religion and sexual orientation.
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Issue 10 - March 2006
Consultation on draft EU directive on Portability of Supplementary Pensions
Now that the requirements of the 2003 EU Pensions Directive (such as the new scheme funding regime) are finally in force, it may be an appropriate moment for us to look forward to another EU Directive which could also have significant implications for the UK.
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Issue 9 - January 2006
The Pensions Commission Publishes its Second Report
On 30 November, the Pensions Commission (chaired by Lord Turner) published its second report setting out its detailed recommendations for reforming the UK pensions system.
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Issue 8 - November 2005
The Pensions Regulator Consults on Funding Defined Benefit Schemes
The goalposts on scheme funding have been shifted again by the Department for Work and Pensions (DWP) which indicated that the regulations and Code of Practice on scheme specific funding will now come into force on 30 December 2005. However, the legislation will still apply to any valuations carried out with an effective date of 22 September or later so long as the valuation is not signed off until after 30 December 2005. read more -->


Issue 7 - September 2005
Consultation on Age Discrimination Regulations
The Department for Trade and Industry has now published draft regulations on the subject of age discrimination. These regulations, which will implement the age discrimination requirements of the European Employment Directive, are due to come into force in October 2006. read more -->


Issue 6 - July 2005
Consultation on the calculation of transfer values
The Actuarial Profession is consulting on a new version of its guidance note on transfer values (GN11). This is likely to have considerable implications for the way that defined benefit schemes calculate transfer values. It was initially hoped that the new GN11 would be in force by September; it now looks likely that the consultation process will take longer than originally expected and it could be at least April 2006 before the new GN11 is in force. read more -->


Issue 5 - May 2005
Key provions of the Pensions Act 2004 come into force
Many of the provisions of the Pensions Act 2004 came into force on 6 April 2005, including the Pensions Regulator and the Pension Protection Fund as well as changed requirements on the indexation of pensions. This article looks briefly at how the pensions landscape has changed since 6 April. read more -->