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
- PPF publishes updated valuation guidance
- PPF appoints new CEO
- TPR concludes Proceeds of Crime Act investigation
- PDP engagement with the pensions industry
- Draft GMP Increase Order 2024 published
The PPF has published new versions of its valuation guidance documents to reflect the Retained EU Law (Revocation and Reform) Act 2023 and regulations to preserve the effect of certain EU judgments concerning levels of PPF compensation. The new documents are effective from 1 January 2024.
On 17 January 2024, the PPF announced it has appointed Michelle Ostermann as its new CEO from 1 April 2024. Current PPF CEO, Oliver Morley, will join MaPS as its CEO from 1 February 2024. Katherine Easter will act as the PPF’s CEO in the interim.
On 17 January 2024, TPR published a press release on a Proceeds of Crime Act investigation. The investigation concerned individuals who were jailed for a total of 10 years in April 2022 after “admitting their part in a criminal enterprise that tricked more than 200 savers into transferring their pension pots into fraudulent schemes they controlled”.
As a result of the investigation, the individuals were ordered to pay sums of £9,771 and £25,010 respectively, which will be returned to the affected pension schemes. TPR could seek a court order to increase the amount payable if further assets are linked to the individuals.
The independent trustees now running the affected schemes may seek further compensation for the victims from the Fraud Compensation Fund.
On 16 January 2024, the PDP published a blog on how it is engaging with industry to prepare for connection. Developments for 2024 include:
- launching a user testing and planning group “early” in the year, to help plan and co-ordinate user testing activity that will inform when dashboards may become publicly available
- setting up a connection working group for potential dashboard providers, once FCA rules have been finalised.
The PDP plans to regularly share updates and insights from user testing activity once underway.
The draft Guaranteed Minimum Pensions Increase Order 2024 has been laid before Parliament. This Order specifies 3% as the percentage by which GMPs attributable to earnings factors for the tax years 1988-89 to 1996-97 are to be increased from 6 April 2024. The percentage specified in the Order must be the lower of the actual percentage increase in the general level of prices in the period under review and 3%.