Department of Work and Pensions : Auto enrolment: inclusion of qualifying career average schemes

5 May 2012 The Department of Work and Pensions has proposed that the provisions of the 2010 Auto-Enrolment regulations be amended to permit the inclusion of career average salary schemes under the qualifying scheme umbrella for auto enrolment. This is subject to the scheme providing that accrued rights should benefit from revaluation at or above CPI or 2.5% per year at any time that pensionable service is continuing (protection of rights after leaving service already being protected). The DWP is consulting on this amendment, with responses required by 11 June. External link

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New rules and guidance on how pension transfer values are calculated

4 May 2012 In March, we highlighted (see Updates) the FSA’s consultation on their to change the way that pension transfer values are calculated. These are often considered in the context of moving a pension pot from an existing defined benefit arrangement into a separate defined benefit scheme but also have influence in other areas of establishing cash equivalence: e.g. tax-free commutation, inter-scheme transfers, purchase of addditional years accrual and so forth. The FSA has noted, particularly given the risk involved in given up the certainty of DB, that they would expect the starting point for pensions transfer advice to…

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DB Pensions – End-March 2012 PPF 7800 deficit

11 April 2012 The Pension Protection Fund produces a monthly index update (the April 2012 release has data taken as at 30 March 2012) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. Total scheme deficits showed an decrease from £222.2bn as at end February to £206.2bn as at end March with a corresponding improvement in s179 funding ratio to 83.4% thus continuing the welcome trend of improvement over the past three months. The backdrop to this change over the month was an improvement in gilt yields (helping liabilities)…

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The Pensions Regulator : Revamp of Trustee Toolkit

22 March 2012 The Pensions Regulator has announced a revised version of the Trustee Toolkit, perhaps the best known e-learning system aimed at helping UK trustees comply with their knowledge and understanding obligations under pensions legislation. According to the Regulator updates include: Downloadable resources, including PDF versions of the case studies and tutorials, to aid offline working More choices relating to scheme size and type when registering so that every learner benefits from a more tailored programme Clearer navigation and an overview of the user’s progress towards receiving the certificate of completion Increased screen size and a refreshed look and…

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Financial Services Authority : Consultation on how pension transfer values are calculated

22 March 2012 The FSA is coming to the end of the consultation period on proposals to change the way pension transfer values are calculated. This consultation, ending on 25 March, seeks to “clarify and update the current standards and aim to ensure that pension scheme members considering a transfer are given a fair assessment of what they will receive in retirement”. The FSA defines the scope of a pension transfer as the process by which a pension is moved from a DB into a personal pension scheme, but the approach could have influence in other areas of establishing cash…

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