Pensions law update: January 2025

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.

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.