Happy New Year! We’re starting 2025 with a policy focused edition of our newsletter, which is timely given it is almost six months to the day since the new Government took office.
In the lead up to the General Election we identified a host of pensions issues any incoming administration would need to tackle. Now we consider where we are in relation to each, and the key policy developments so far. Before Christmas we learned that Phase 2 of the landmark pensions eco-system review, focusing on pensions adequacy, has been placed on hold, perhaps indefinitely. However, as we reported in our December newsletter, Phase 1, focusing on investments, is well underway with an interim report published in November. This month we consider, in greater detail, the consultations on proposed changes to DC schemes and LGPS funds launched following Rachel Reeves’s maiden Mansion House speech.
Also in this edition we round up the latest pensions law news including updates on how the FCA is tackling bad DB transfer advice and some headline grabbing awards in recent Pensions Ombudsman determinations. Plus, we share key learnings from our recent Cyber Security for Pensions webinar, and a recording of our recent joint webinar with Spence & Partners relating to exits from the Local Government Pension Scheme (LGPS).
Pensions policy - what do we know?
The beginning of the New Year and six months into Labour taking office: a perfect time to consider where we are - and where we may be heading. In this article, we reflect on the list of issues we identified before the election for the new Government to get to grips with.
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Mansion House reforms
DC consolidation
The Mansion House reforms announced by Rachel Reeves in November include significant consolidation of the DC market, including establishing a minimum size for multiple employer DC schemes used for auto-enrolment. Andy Prater looks at the key proposals for DC schemes set out in the consultation “Unlocking the UK Pensions Market for Growth”.
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LGPS pooling and beyond
Significant changes are also proposed for the LGPS, including an acceleration and expansion of asset pooling, as well as radical reforms for the pools themselves. We outline the proposed changes and share our thoughts on the key legal and practical challenges.
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News round-up
Cyber risk for pension schemes webinar
We share some key takeaways from our recent cyber webinar where host Richard Pettit was joined by You Yu (the Pensions Regulator), Paul McClone (Aon) and Samantha Howell (Burges Salmon) to discuss the updated regulatory environment for pension schemes, and the actions trustees (and scheme sponsors) should be taking:
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FCA continues its crack down on bad DB pensions transfer advice
In the wake of the British Steel pensions transfer scandal, tackling bad pensions transfer advice has been a key focus area for the FCA. Chris Brown and Mairi Carlin round up the latest developments in this update.
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The Pensions Ombudsman shows the extent of its powers with some significant payment rulings
Pensions scamming continues to be a huge issue for the pensions industry. Two recent determinations highlight the Pensions Ombudsman’s willingness to flex its disciplinary muscles and order payments by scammers in the millions of pounds. We take a look at the cases, what they signal to scammers, and the ongoing work by the pensions industry in the fight against pensions liberation.
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LGPS exits: navigating discretionary refunds of surplus webinar
On 3 December, Michael Hayles and Ed Curtis joined Alistair Russell-Smith (Head of Corporate & Public Sector at Spence & Partners) on a webinar discussing employer exits from the LGPS in England and Wales. The focus was on the payment of exit credits and how administering authorities are exercising their discretion. You can view the recording here.
Watch here >
Pensions Pod season 5 continues
Season 5 of the Pensions Pod will re-commence shortly, following a short interlude for the festive break. In the meantime, you can catch up on all of the episodes so far – including discussions about fiduciary management for DB schemes, risk transfer v run on and DC investments in private markets.
Listen here >
We hope you find the above helpful but, as always, please do get in touch if you have any questions or you would like to discuss anything further.