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

The Occupational Pension Schemes (Master Trusts) (Amendment) Regulations 2022

Regulations were laid before Parliament on 14 March 2022, which amend the definition of “administration charge” to ensure that “costs solely attributable to holding physical assets” will remain excluded from the administration charges that apply in relation to members of an authorised master trust after 5 April 2022. These regulations will maintain the current position after saving provisions cease to have effect on 5 April 2022.

Pension increase rate for public service pensions published

The Pensions Increase (Review) Order 2022 was made on 17 March 2022 and specifies 3.1% as the amount by which public service pensions will increase from 11 April 2022 (pro-rated for pensions which have been in payment for less than 1 year). The level of increase is reviewed annually by reference to CPI.

Pension increase rate for GMPs published

The Guaranteed Minimum Pensions Increase Order 2022 was made on 16 March 2022 and specifies 3% as the percentage by which that part of GMPs attributable to earnings factors for the tax years 1988-89 to 1996-97 is to be increased from 6 April 2022 (see 7 Days).

Update to TPR’s quick guide to the chair’s statement

TPR’s quick guide to the chair’s statement has been updated in March 2022 to state that, for chair’s statements for scheme years that fall after 1 October 2021, it is “acceptable to attach to the statement any information or documents that are required to be ‘stated’ or ‘included’ as part of it”, for example the default arrangement SIP and the costs and charges illustrative examples.

Before March 2022, the quick guide (last updated in September 2021) suggested that, in TPR’s opinion, the default SIP and the illustrative examples were the only documents that could be attached to the statement.

New Pensions Ombudsman factsheet for members

In March 2022, TPO published a factsheet for members on complaining to the party/parties at fault before TPO will investigate a complaint. The factsheet gives guidance for members on when and how to bring a complaint under a pension scheme’s IDRP, and the timelines for making a complaint to TPO.

Continued implementation of the McCloud judgment

The Government’s implementation of the McCloud judgment (see 7 Days) continues:

Regulations have been made enabling the closure of various legacy public service pension schemes to future accrual on and from 1 April 2022, except for limited purposes, and moving active members to reformed schemes, to ensure members are treated equally in respect of pensionable service built up after 31 March 2022:

The Public Service Pensions and Judicial Offices Act 2022 received Royal Assent on 10 March 2022. The Act provides for public service pension scheme members to be given a “deferred choice underpin” (see 7 Days). These changes will come into effect no later than 1 October 2023.

GAD has developed a retirement calculator to help public service pension scheme members understand the implications of the McCloud judgment for their pension.