Alerts

Focusing on breaking news

• Trustee knowledge and understanding - draft code of practice published

  Amid the Pensions Act 2004 maelstrom, on 17 March 2005 the Pensions Regulator (TPR) pbulished a draft code of practice for consultation on trustee knowledge and understanding (TKU). The consultation period runs until 10 June 2005. The TKU requirements under the Pensions Act are set to come into force on 6 April 2006. In summary, all occupational pension scheme trustees must have sufficient TKU of pensions and trusts law to run their schemes properly. Trustees must also be conversant with scheme documents.

  Read more

• Pensions reform - the Budget and tax simplification

  In his last Budget before the general election, on 16 March 2005 the Chancellor Gordon Brown confirmed that "a package of supplementary measures" will form part of the tax simplification provisions coming into force in April 2006. The changes are largely anti-abuse measures and will be incorporated into the forthcoming Finance Bill 2005.

  Read more

• Tax simplification - further changes announced

  The Inland Revenue has announced a futher package of measures which will form part of the tax simplication changes due to come into force on 6 April 2006 (A-Day). Many of the new measures stem from on-going "liaison" with the pensions industry following the enactment of the Finance Act 2004 in July last year. The aim is to provide schemes and individuals with additional flexibility, to clarify certain aspect of the 2004 Act, to smooth the transition from the current to the new tax regime and to introduce "further anti-abuse and compliance rules".

  Read more

• Trustees - the scope of knowledge and understanding

  Under the Pensions Act 2004, pension scheme trustees must have sufficient knowledge and understanding (TKU) of pensions and trusts law to run their schemes properly. Trustees should also be conversant with scheme documents. On 4 February 2005, Opra published final lists of issues which "the pensions industry considers trustees need to know and understand, and...policy with which trustees should be conversant" in order to fulfil these requirements. Opra refers to these lists as "the Scope of knowledge, understanding and conversance". The new lists (or scope documents) are the culmination of Opra's work behind the scenes over the last six months or so, including responses received to pre-consultation scoping documents issued by Opra in October 2004 and subsequent workshops.

  Read more

• First PPF levies announced

  The Pension Protection Fund (PPF) is one of the key elements in the Pensions Act 2004. It is designed to provide a safety net for members of underfunded defined benefit (DB) schemes whose employers become insolvent. The PPF will be established from 6 April 2005. The PPF will be primarily funded by a levy on potentially "eligible schemes" - namely, all schemes with a DB element, including hybrid schemes. But DB schemes already in winding-up before April 2005 and defined contribution (DC) only schemes are not liable for the PPF levy. 

  Read more

• Scheme debt - full buy-out on employer insolvency

  The Occupational Pension Schemes (Winding Up, Deficiency on Winding Up and Transfer Values) (Amendment) Regulations 2005 were laid on 25 January 2005, and will come into force on 15 February 2005. These Regulations were the subject of a consultation paper issued on September 2004. The Government has stated that these Regulations are designed to protect the position of members whose defined benefit scheme winds up by ensuring that "the pension schemes will have a claim more akin than presently to the members' pension expectations". The main changes focus on raising the level of debt triggered on scheme wind-up to full buy-out in all cases. However, there are also new disclosure requirements for trustees where members seek a transfer payment from a scheme winding-up.

  Read more