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

Bulk transfers of DC pensions without member consent: guidance published

The DWP has today (30 April 2018) published guidance on bulk transfers without consent of money purchase benefits without guarantees. The guidance supports changes made by the Occupational Pension Schemes (Preservation of Benefits and Charges and Governance) (Amendment) Regulations 2018 from 6 April 2018.

The DWP’s consultation on the draft regulations (the response to which was published in February 2018) sought views on changes to simplify the bulk transfer provisions for DC pensions without member consent. In particular, the regulations now make it possible to make a bulk DC transfer without consent from an occupational DC scheme:

  • to an authorised master trust (effective once the master trust regime begins on 1 October 2018), or
  • to another occupational pension scheme, provided the transferring trustees have obtained and considered the written advice of an “appropriate adviser” who is “independent” of the receiving scheme.

These provisions replace the requirement to obtain an actuarial certificate and the “scheme relationship condition”. The provisions are subject to a transitional period which is running until 30 September 2019, during which the original rules can still be used.

The guidance aims to helps trustees comply with the new regulations, and is intended to be used alongside TPR’s DC Code and guidance for trustees on managing DC schemes.

CMA publishes further working papers

The Competition and Markets Authority (“the CMA”) has published three further working papers as part of its investigation into investment consultancy.

The papers, published on 26 April 2018, are on Barriers to entry and expansion, Financial performance and profitability, and the Competitive landscape.

The inquiry’s provisional decision report is expected in July 2018.

House of Commons Library – briefing paper published

The House of Commons Library published a briefing paper on 25 April 2018, looking at overpayments to members of public service pension schemes due to the incorrect calculation of GMPs.

TPR to prosecute brewery for failing to provide information required for investigation

On 24 April 2018, TPR announced that it would prosecute Samuel Smith Old Brewery (Tadcaster) and company chairman Humphrey Smith for failing to provide information and documents required for an ongoing TPR investigation.

TPR had sought details of the company’s finances to understand the funding position of some of the brewery’s pension schemes. However, the company and Mr Smith failed to comply with a notice issued under section 72 of the Pensions Act 2004 (requiring information to be provided to TPR) without a reasonable excuse, which is an offence under the Act.

The company and Mr Smith have been summonsed to appear at Brighton Magistrates’ Court on 15 May 2018.