7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

New Secretary of State for Work and Pensions

The Secretary of State for Work and Pensions, Esther McVey, resigned from the Government on 15 November 2018, and has been replaced by The Rt Hon Amber Rudd, MP for Hastings and Rye.

ECWG publishes guide on Type A Contingent Asset Guarantee Certification

The Employer Covenant Working Group (“ECWG”) has published “guidance on leading practice principles that underpin analysis of PPF Standard Form Type A Contingent Asset Guarantees”. The guide is one of a series issued by the ECWG to cover various aspects of employer covenant assessment, and was produced with input from TPR and the PPF.

It follows the principles laid down by the PPF in its contingent asset guidance (including the PPF’s annual levy determination, contingent asset appendix and guidance on Type A contingent asset guarantees), together with the practical knowledge of employer covenant practitioners with experience of Type A Contingent Asset Guarantees.

EIOPA publishes principles and guidance for the Pension Benefit Statement

On 13 November 2018, EIOPA published a report on the “Implementation of IORP II in relation to the Pension Benefit Statement: Guidance and Principles based on Current Practices“.

The report is part of EIOPA’s work to help EU member states implement the new “IORP II” Directive into their national legislation. It focusses on the new requirement for schemes to draw up a pension benefit statement. This statement should be concise and made available to each member at least annually.

Among other things, the report discusses the IORP II requirements on information disclosure, and sets out guidance and principles for those responsible for issuing pension benefit statements.

HMT publishes revised public service pension schemes discount rate guidance

On 14 November 2018, HMT published a revised version of its technical note on the discount rates to be used by scheme managers of public service pension schemes in calculating transfers payable from the schemes. The guidance brings the discount rates into line with changes made at Budget 2018.

The guidance applies to unfunded public service pension schemes and local government pension schemes in England, Wales, Scotland and Northern Ireland. Schemes should adopt the updated discount rates with immediate effect.