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Pensions update archive
Sackers Extra News is an information newsletter service presenting significant legal developments relating to pensions. The newsletter addresses topics with universal appeal on a regular basis, to help keep you abreast of the key issues.
If you would like to receive a copy of the newsletters shown below please e-mail Marketing with your contact details. A company name is required.
Past editions of Sackers Extra News are summarised below.
| December 2004 | Pensions Act 2004 timetable for change |
| 2004 has been a busy year for pensions, with much Parliamentary time dedicated to pensions reform. Although the Pensions Act 2004 (PA 2004) has received Royal Assent, the road to implementation still lies ahead. Trustees and employers need to be ready for the new requirements coming into force. Here we look at some key changes currently timetabled for 2005 and 2006. |
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| November 2004 | Anti Avoidance - a "moral hazard"? |
| The so-called "moral hazard" provisions in the Pensions Bill have stolen many column inches since they were first announced in April 2004. Broadly, their effect is to widen the scope of parties who may be made responsible for a pension scheme deficit. The importance of this is heightened by the fact that, in future, the level of debt will be full buy-out in all circumstances. | |
| October 2004 | Trustee Knowledge and Understanding - the dawn of a new era |
| One of the headline issues emerging from the Pensions Bill is the proposed requirement for all scheme trustees to have "knowledge and understanding" across the full range of their responsibilities. (This is set against the backdrop of the Government's desire for half of trustees to be member-nominated.) What does this mean for trustees? | |
| October 2004 | Part timers - TUPE turnaround |
| Following the Court of Appeal's decision relating to the long-running Preston saga. Part timers seeking additional Pensionable service under their former employer's occupational pension scheme must bring their claim within 6 months of a TUPE transfer. | |
| September 2004 | Tax simplification - the implications for high earners |
| In the countdown to "A-Day" (6 April 2006), a major concern for employers and trustees of occupational pension schemes is the need to communicate the new system to members. High earners are likely to be a priority because of the difficult choices they face in advance of A-Day. | |
| August 2004 | New moves to curb pension liberation |
| So-called "pension liberation" or trust busting sounds dramatic but what does it mean? What are trustees expected to do about it when making transfer payments? Opra recently published Update 8 to help trustees identify pension liberation schemes and offer guidance on actions if suspicions are aroused. It has also revised its leaflet aimed at transferring members. Here we sum up some of the issues. | |
| July 2004 | Corporate transactions - are pension scheme trustees deal breakers? |
| Pensions can have a considerable effect on corporate deals. A recent high profile example of this is WHSmith, where trustee intervention led to the withdrawal of a bid by joint venture company Permira to take over the scheme's sponsoring employer. But the role of trustees in this situation is often a tricky one. Here we highlight some considerations. | |
| June 2004 | Tax simplification - the hidden costs |
| From "A-Day" (6 April 2006), the eight tax regimes applicable to occupational and personal pensions will be replaced by a single uniform set of allowances. Whilst A-day may seem a long way off, trustees and employers of occupational pensions schemes need to start considering the potential cost ramifications of this question now. Here we briefly consider why. | |
| May 2004 | The Pension Protection Fund |
| In the Pensions Bill published in February 2004, the Government unveiled its plans for a pensions compensation scheme. This scheme is known as the pension protection fund (PPF) and is aimed at members of underfunded defined benefits (DB) schemes whose employers goes bust. Here we discuss some of the key issues relating to how these new proposed regulations will help you. | |
| April 2004 | Corporate Governance and shareholder activism - the role of trustees |
| Corporate governance and shareholder activism are increasingly becoming hot topics. There are a number of voluntary initiatives for achieving good corporate governance. A new report by Paul Myners has also helped to spark renewed speculation that the Government will legislate in this area. Here we briefly consider the current position and offer some thoughts of our own. | |
| March 2004 | Employer debts and multi-employer hybrid schemes |
| The recent Pitmans case shed some judicial light on the rarely litigated area of section 75 of the Pensions Act 1995. The action by the trustees to recover a debt from the (last remaining) employer concerned the winding up of the BETEC Retirement Benefits Plan ("the BETEC Plan"). Whilst the trustees were temporarily unsuccessful in recovering the debt (for technical reasons), the case's overall importance for multi-employer and hybrid schemes cannot be ignored. | |
| February 2004 | Part-timers - the TUPE twist |
| The latest decision in the Preston part-timer saga was handed down by the Employment Appeal Tribunal ("EAT") in December 2003, with the EAT reversing the earlier decision of the Employment Tribunal on the impact of TUPE on part-timers' claims. Part-timers seeking additional pensionable service in these circumstances can now bring a claim against their old employer at any time whilst they remain employed by their new employer (and up to 6 months after leaving). The decision could have a major impact on part-timer claims which have not yet settled. It also has wider implications for commercial transactions generally. | |
| January 2004 | Unapproved group life assurance without capital gains tax |
| There has been a longstanding difficulty for employers wishing to arrange unapproved group life assurance. The Finance act 2003 introduces some changes which can minimise these complications. However schemes will have to act before 6 April 2004 to take advantage of this option. Here we discuss some of the key requirements to avoid the capital gains tax. |
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