Sacker & Partners solicitors specialising in pensions law

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.

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Past editions of Sackers Extra News are summarised below.

December 2005	Desperately seeking enhanced protection?
	Enhanced protection is potentially hugely advantageous because it provides an exemption from the lifetime allowance (LTA) charge when benefits come into payment. In contrast, primary protection simply raises the threshold at which the LTA charge will apply. Given this, the Finance Acts 2004 / 2005 set several trip wires which, if triggered, will mean enhanced protection disappearing in a puff of smoke. We look at some of the ways that could happen.
November 2005	The new funding standard - the Regulator's role
	After a series of delays, the new statutory funding objective (SFO) will finally replace the much maligned minimum funding requirement on 30 December 2005. It is the Pensions Regulator's job not only to ensure that trustees and employers comply with the SFO, but it will also intervene where necessary. Here we look at the Regulator's recently released consultation paper detailing its proposed approach towards its latest regulatory role.
October 2005	The changing face of section 67
	From 6 April 2006, section 67 takes on a whole new look. Employers and trustees of occupational pension schemes contemplating changes will potentially have to surmount several hurdles in pursuit of safeguarding members’ rights. A draft code of practice was issued by the Pensions Regulator for consultation back in July. More recently, the DWP have published draft regulations. This newsletter previews section 67’s radical makeover.
September 2005	Are your internal controls sound?
	Legislation due to come into force later this year will impose specific obligations on trustees to have sound administrative procedures and effective internal control mechanisms in place. The force behind the new requirements is the EU Pensions Directive, but echoes of the Myners principles on trustee governance and the new trustee knowledge and understanding requirements abound. Consultation on draft regulations finished on 9 September 2005 and, on the same day, the Pensions Regulator (TPR) published its corresponding draft code of practice.
August 2005	Class actions - are pension schemes missing out?
	It has recently been reported that British institutional investors, custodians and pension funds who have direct holdings of US shares are failing to collect settlements from US securities class actions worth a total of £4.7bn. This raises the question - should pension funds and their advisers be doing more to get a slice of the pie?
July 2005	Age discrimination - the great escape?
	Age discrimination laws, due to come into effect in October 2006, came a step closer this month with the publication of long-awaited Regulations. Whilst still in draft at this stage, far from requiring fundamental changes, they include numerous exemptions for pension schemes. But does this really mean that pension schemes hold a “get out of jail free card” against age discrimination claims?
June 2005	A-Day ahoy!
	With just over nine months to go to A-Day trustees and employers need to ensure that their schemes are shipshape for tax simplification. Although a uniform set of allowances will apply across the board from 6 April 2006, in many respects the new regime will not be overriding. In this newsletter we briefly outline some of the key pension benefits under occupational pension schemes which may need specific tax simplification attention.
May 2005	Pensions Ombudsman orders trustees to disclose legal advice
	What should you do when a member requests a copy of legal advice given to trustees? A recent Ombudsman determination on the subject (Cameron v The Trustees of the Digital Equipment Company Pension Plan) indicates that trustees may ultimately be directed to disclose it. The outcome also suggests that the Ombudsman is prepared to look beyond traditional objections to disclosure of trust documents.
April 2005	Anti-avoidance - guidance issued on Clearance Statements
	Amongst the new Pensions Regulator's "super powers", the anti-avoidance provisions are aimed at preventing employers from dodging pension scheme liabilities. Anyone concerned that their actions might fall foul of the anti-avoidance provisions can seek a binding clearance statement from the Pensions Regulator (TPR). This newsletter looks at the sort of "actions" or "events" TPR might be interested in, the clearance procedure and the role of scheme trustees.
March 2005	TUPE transfers – new pension protection
	Having been watered down by successive European Court decisions, the pensions exemption under TUPE will face a radical shake up from 6 April 2005. The changes are being wrought under the Pensions Act 2004 and will finally fulfil the Government’s aim of providing some degree of pension protection to transferring employees. But who is “protected” and what form does this protection take?
March 2005	Increasing pensions in payment – simplification or complication?
	Back in July 2002, the Pickering report put forward a radical rethink of compulsory increases on pensions in payment because of concerns that they were “disproportionately expensive”. With the Government keen to maintain some degree of mandatory indexation, new relaxations are being introduced under the Pensions Act 2004 (PA 2004) on 6 April 2005. This newsletter highlights some of the issues, including the possible need to amend scheme rules.
February 2005	New rights for transsexuals
	From 4 April 2005, post-operative transsexuals will finally be entitled to legal recognition in their acquired gender. This ground-breaking legislation is the culmination of several high-profile cases in recent years before the legal heavy weights, the European Court of Human Rights, the European Court of Justice and the House of Lords. This newsletter considers some of the implications for trustees and employers of occupational pension schemes.
February 2005	The Pensions Regulator - ignore it at your peril
	What does the arrival of the new Pensions Regulator from April 2005 signify for your scheme? The Pensions Act 2004 is seen by some as a landmark that will secure and strengthen the UK's private pension tradition. The new proactive Pensions Regulator will assist by protecting members' benefits. By taking a glimpse at just some of the new regulator's powers we highlight some specific action points for employers and trustees.
January 2005	Age discrimination - when I'm 65?
	The concept of age discrimination is pretty fundamental in the context of pensions but there is no existing law which prohibits it. This is set to change from October 2006 when new legislation will come into force. Details are currently sketchy as Regulations will not be published until later this year, but employers need to start planning. This newsletter looks at what we already know, including some recent developments.

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2006 / 2004