Tag archives: occupational pension scheme

UK Pensions: Regulator’s annual DB funding statement urges collaboration to meet COVID-19 challenges

 

On April 30, 2020, the Pensions Regulator published its 2020 funding statement for defined benefit (DB) schemes with valuation dates between September 22, 2019, and September 21, 2020. However, these COVID-19 times are challenging for all businesses, and the effects of the pandemic are relevant to all DB schemes.

The statement urges collaboration between trustees and employers to manage scheme funding impacts and to maintain a focus on the long term, particularly regarding planning and risk management. With the uncertainty of the COVID-19 crisis, effects will be marked on both the short-term business impact of the lockdown … Continue Reading

UK Pensions: Regulator’s warning that member transfer requests during the pandemic may be a poor decision

UK Pensions: Regulator’s warning that member transfer requests during the pandemic may be a poor decision

Adding to its already impressive haul of Covid-19 related publications to date, on 29 April 2020, the Pensions Regulator published further trustee guidance Communicating with members when they request a transfer or to access benefits.

Pension scheme members seeking a transfer from a defined benefit (DB) to a defined contribution (DC) pension during the Covid-19 crisis will be warned by trustees that such a move is unlikely to be in their best long-term interests. They are also reminded that where a DB transfer value … Continue Reading

UK Pensions – Could ethical veganism impact on future pension fund investments?

UK Pensions – Could ethical veganism impact on future pension fund investments?

January 2020

In an employment tribunal preliminary hearing on 3 January 2020, Judge Robin Postle ruled that ethical veganism satisfies the tests required for it to be a philosophical belief, with the result that it was protected under the Equality Act 2010. For a belief to be protected under the Act, it must meet a series of tests including being worthy of respect in a democratic society, not being incompatible with human dignity and not conflicting with fundamental rights of others. The ruling means that ethical vegans are … Continue Reading

UK Pensions: Regulator ramps up “green” investment guidance for revised SIPs

New guidance from the Pensions Regulator reflects recent legislative changes requiring trustees of occupational pension schemes to set out their policies on environmental, social and governance (ESG) issues which may influence their investment decisions.

The new law

From 1 October 2019, changes apply governing the way pension schemes prepare and revise their investment disclosure documents, including their Statement of Investment Principles (SIP). There are also new requirements for an Implementation Statement to be prepared and published.

Further changes were implemented in 2019 following the transposition into UK law of the Shareholders’ Rights Directive II which … Continue Reading

UK Pensions: beware inheritance tax on pension transfers made shortly before death

UK Pensions: beware inheritance tax on pension transfers made shortly before death

In a recent UK case (HMRC v Parry) the Court of Appeal found that inheritance tax was due on pension benefits which were transferred out of a defined benefits (or final salary) to a defined contribution (or money purchase) scheme shortly before a terminally ill member died.

Following a divorce, Mrs Stavely transferred her rights from a pension she had set up with her ex-husband into a new scheme, and then named her children as beneficiaries, to avoid the benefits being paid under a binding nomination … Continue Reading

LexBlog