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
- Government consults on TCFD-aligned climate risk governance and reporting requirements for the LGPS
- Office of Tax Simplification (OTS) calls for evidence on tax implications of hybrid and distance working
- HMRC publishes August newsletter for scheme administrators
- Dominic Harris confirmed as new Pensions Ombudsman
- Harpur Trust v Brazel (Supreme Court) – 20 July 2022
On 1 September 2022, the Government published a consultation on proposals to require LGPS administering authorities to assess, manage and publish an annual report on climate-related risks, in line with the TCFD recommendations on climate-related disclosures (see our 2021 ESG Guide for details of the TCFD recommendations).
The proposals are broadly similar in scope to those applying to large private occupational pension schemes (again, see our 2021 ESG Guide for details). However, the proposals apply to all LGPS administering authorities in England and Wales regardless of fund size.
The consultation closes on 24 November 2022. The proposals are expected to be brought into force by April 2023, with the first reporting year the 2023/24 financial year. The first reports will be required by December 2024.
Office of Tax Simplification (OTS) calls for evidence on tax implications of hybrid and distance working
On 31 August 2022, the OTS published a call for evidence on emerging trends and tax implications of hybrid and distance working, including in relation to pensions. Among other issues, the OTS will consider the impact on pension schemes and pension contributions of employees working in a different country to their employer, and whether policies and procedures have changed since the pandemic. The call for evidence closes on 25 November 2022.
On 31 August 2022, HMRC published its regular newsletter aimed at scheme administrators including an update on migrating pension schemes to the Managing Pension Schemes service and a reminder that their guidance has been updated to reflect the increase to NMPA in 2028.
On 31 August 2022, the DWP announced that Dominic Harris will replace Anthony Arter as the Pensions Ombudsman and the PPF Ombudsman from 15 January 2023.
The Supreme Court recently handed down its judgment in a case concerning the calculation of statutory annual leave and holiday pay entitlements by “part-year” workers who work for varying hours for only certain weeks of the year, but are employed for the full year. The Court found the amount of leave (and associated holiday pay) to which such a worker is entitled should be based on the average weekly remuneration in a reference period set out in legislation, rather than a pro-rated amount of the leave of a full-time worker, and this was fully compliant with EU law.
Employers affected by this decision must ensure that any adjustments to holiday pay, including any back payments, are tracked through into pensionable pay, where relevant. For DB schemes, this could result in changes to benefit calculations and payments. See our case summary for more detail.