Sacker & Partners solicitors specialising in pensions law

22 December 2004	Opra update 10 - guidance on avoiding pension liabilities
	Opra (the Occupational Pensions Regulatory Authority) has published a new update on “avoiding pension liabilities - implications of the Pensions Act 2004”. Update 10 is primarily aimed at sponsoring employers and trustees of defined benefit schemes. But it is especially important for anyone considering compromising a scheme debt and for all parties involved in corporate transactions (and restructurings). The underlying theme is avoiding the risk that unrecovered statutory debts can pose to members and the Pension Protection Fund, with the focus on particular actions (or inactions) which may heighten such risk.
17 December 2004	Review of Myners principles for institutional investment decision-making
	Paul Myners reported in March 2001 on Institutional Investment and recommended that pension scheme trustees voluntarily adopt a series of principles and best practice for investment decision-making. The Government has been reviewing the extent to which pension schemes have implemented Myners and published the results of its research in November 2003 and July 2004. It has today announced its proposals for strengthening the Myners principles, in particular with regard to trustees’ levels of expertise and decision-making processes.
14 December 2004	Protecting the PPF - draft code on notifiable events
	On 10 December 2004, the second code of practice under the Pensions Act 2004 was published in draft for consultation. The consultation paper sets out a framework for notifying the Pensions Regulator of certain events in schemes which are potentially eligible for compensation from the Pension Protection Fund. The parties on the hook to notify “as soon as reasonably practicable” are trustees and employers of such schemes. The consultation period for the draft code ends on 4 March 2005, with the code expected to take effect by May 2005.
9 December 2004	“Whistleblowing” – draft code of practice published
	On 8 December 2004, the first code of practice under the Pensions Act 2004 was published for consultation by the Department for Work and Pensions: “Whistleblowing” – Reporting breaches of the law. Comments on the draft code are invited by 7 January 2005. The draft code “covers the duty to report significant breaches of the law relating to occupational and personal pension schemes (including stakeholder schemes)” to the Pensions Regulator. Crucially, from April 2005, the responsibility for reporting breaches will apply to a significantly expanded group.
7 December 2004	TUPE pension protection regulations published
	Draft regulations have been published for consultation to help fulfil the Government’s aim of replacing the pensions exemption under The Transfer of Undertakings (Protection of Employment) Regulations 1981 with pension protection for transferred employees. The draft regulations, The Transfer of Employment (Pension Protection) Regulations 2005, will implement the new requirements under the Pensions Act 2004 that on a TUPE transfer certain employees will qualify for pension protection. Comments on the draft regulations (which are intended to come into force on 6 April 2005) are invited by 21 January 2005.
26 November 2004	New MFR regulations laid
	Following recent consultation, The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Amendment Regulations 2004 were laid before Parliament on 23 November 2004. The regulations, which are aimed at easing the transition away from the MFR to the new statutory funding objective, will come into force on 21 December 2004.
19 November 2004	A new Pensions Act is born!
	Following intense scrutiny by both Houses of Parliament (and a number of twists and turns along the parliamentary way), the Pensions Bill 2004 finally received Royal Assent on 18 November 2004. The Bill, which was first published in February this year, can be seen as the culmination of a series of reviews, primarily the Pickering Report but also to a certain degree the Sandler review and the Myners Report.
26 October 2004	Pensions Bill - catch-up
	On 18 October 2004, a new version of the Pensions Bill was printed. The new version catches up on all of the changes made to the Bill since 21 May 2004, when the Bill left the House of Commons to be considered by the House of Lords. Given this time-lag, many of the new clauses featured in the Bill have already received a certain amount of publicity.
12 October 2004	Pensions Commission publishes report
	On 12 October 2004, the Pensions Commission published its first report. Headed by Adair Turner, the Pensions Commission is an independent body set up in the wake of the Pensions Green Paper to keep under review the system of private pensions and long-term savings in the UK. Whilst the Report has not made any recommendations at this stage, the Commission has identified a number of options which will form the focus of consultation. Written submissions have been invited by the end of January 2005.
7 October 2004	Financial Assistance Scheme - information required by 12 November 2004
	In its press release of 4 October 2004, the Department for Work and Pensions (DWP) has asked “professionals” involved in winding-up underfunded DB schemes (both now and in the past) to provide it with information relating to those schemes through an online questionnaire. The DWP is keen to receive this information by 12 November 2004. However, it will be possible for schemes to submit this information at a later date.
15 September 2004	Schemes to have 50% member-nominated trustees
	New proposals to ensure that 50% of pension scheme trustees are member-nominated have been unveiled by the new Secretary of State for Work and Pensions, Alan Johnson. The changes, which were announced at the TUC Conference in Brighton on 14 September, will replace the draft requirements in the Pensions Bill for all schemes to have one-third member-nominated trustees (or directors of a corporate trustee).
14 September 2004	Disability discrimination law post 1 October 2004
	On 1 October 2004, significant changes to disability discrimination legislation come into force which will affect both employers and trustees of occupational pension schemes. The impetus behind the changes is the EU Framework Directive on Equal Treatment. This Directive was also responsible for the December 2003 changes relating to non-discrimination on grounds of sexual orientation and religion or belief, and under which we will see the advent of age discrimination legislation (probably in 2006).
9 September 2004	Further proposed changes to winding-up legislation
	In an attempt to protect further the position of members whose defined benefit scheme is winding-up, the Government has published proposals to change the winding-up legislation. 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 with a solvent employer.
9 September 2004	Smoothing the transition from the MFR
	Proposed amendments are on the cards to help smooth the transition from the minimum funding requirement to the new statutory funding objective set out under the Pensions Bill 2004.
30 July 2004	Pensions Reform - a tale of two bills
	The Finance Bill officially became an Act when it received Royal Assent on 22 July 2004. The Act paves the way for pensions tax simplification from A-Day, 6 April 2006, when the current eight pensions tax regimes will be replaced by a single set of allowances governing all registered pension arrangements. Throughout July the Pensions Bill has been hotly debated in the House of Lords, with the so-called moral hazard clauses grabbing many of the headlines. However, Parliament has now commenced its Summer recess, so further deliberation of the Pensions Bill has been adjourned until the Lords reconvene in September.
19 May 2004	Opra Update 7 - compromising employer debts
	On 17 May 2004, Opra published new guidance to trustees of defined benefit pension schemes who are considering compromising an employer's debt. Agreements to compromise the employer’s debt have become increasingly commonplace since the High Court’s approval of such an arrangement in the Bradstock case back in 2002. Concerned at this growing trend and the possibility that some members may be getting a poor deal, Opra Update 7 “outlines important steps trustees must take” when facing this particular dilemma.
13 May 2004	Opra Note 6 - new traffic light system for voluntary whistleblowers
	On 12 May 2004, Opra launched its new reporting guidance for non-statutory whistleblowers, such as pension scheme trustees, administrators and other professional advisers. Revised Opra Note 6 sets out the new “traffic light” system for reporting breaches to Opra under section 48(4) of the Pensions Act 1995.
7 May 2004	Pensions Bill's progress
	A second draft of the Pensions Bill has been published. Following its first publication on 12 February 2004, the Bill has been extensively reviewed during the House of Commons’ Committee Stage. A number of amendments, ranging from minor drafting corrections to major technical changes, have been put forward.
20 April 2004	Winding-up priority order regulations laid
	Regulations amending the statutory priority order on the winding-up of an occupational pension scheme were laid on 19 April 2004. Under the Regulations, which will come into force on 10 May 2004, non-pensioners’ main benefits will rank above increases on pensions in payment. However, the Government has abandoned its original plan of affording a higher priority to those non-pensioners with longer service.
8 April 2004	Pensions tax simplification shapes up
	On 8 April 2004, the Government published the Finance Bill 2004 which sets out the mechanics for achieving pensions tax simplification. This follows Gordon Brown’s Budget announcement that he would proceed with his plans to replace the current eight pensions tax regimes with a uniform set of allowances applicable to all - but not until 2006.
1 April 2004	New rights for same sex couples
	On 31 March 2004, the Government published its long anticipated Civil Partnership Bill. (The Bill follows a consultation paper published on 30 June 2003.) The Bill proposes that same sex couples who register their partnership will gain legal recognition of their relationship. They will then have access to a whole range of benefits similar to those currently enjoyed by married couples, such as property and pension rights.
17 March 2004	Pensions tax simplification delayed to 2006
	In his Budget speech, the Chancellor, Gordon Brown, confirmed that he will proceed with his plans to replace the current eight pensions tax regimes with one set of uniform rules applicable to all. His announcement follows the publication of the National Audit Office’s (“NAO”) report on 9 March 2004, responding to specific questions raised by the Chancellor regarding the number of people who may be affected by the new measures.
24 February 2004	Winding-up full buy-out for solvent employers
	On 23 February 2004, the Regulations requiring solvent employers of defined benefit schemes (“DB”) which are winding up to buy all members' benefits out in full were finally laid before Parliament.
13 February 2004	The Pensions Bill has landed
	More than 18 months after the publication of the Pickering report on the simplification of pensions, on 12 February 2004 the Pensions Bill was published. Much of the Bill is dedicated to the new Regulator and the Pension Protection Fund.
4 February 2004	Informed choices for working and saving - the Government consults
	Building further on the aims set out in the Green Paper and the “Action Plan” for encouraging individuals to save for their retirement, the Government published its latest pensions paper on 3 February 2004. The main focus of the Government’s paper is encouraging pension savings by “empowering individuals to make real and informed choices”.
27 January 2004	Opra Update 5 - relaxing the rules on reporting late payment of contributions
	As part of its aim to adopt a more risk-based approach to dealing with breaches of the Pensions Act, on 23 January 2004 Opra announced a relaxation in its requirements for trustees reporting late payment of contributions by employers. The relaxation will generally mean that Opra will no longer need to be notified if payments are made within 90 days of the “due date”. Opra’s new initiative is set out in Update 5 and takes effect from January 2004.
22 January 2004	Access to occupational pension schemes for self-employed workers?
	On 13 January 2004, the European Court of Justice (ECJ) essentially concluded in Allonby v Accrington & Rossendale College that a self-employed worker may be able to claim membership of a statutory occupational pension scheme if appreciably more women than men are affected by restricting membership to employees only.

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