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

More guidance from HMRC as LTA removal takes effect

6 April 2024 marked the end of the LTA and the introduction of new allowances, the “lump sum allowance” and the “lump sum and death benefit allowance”. See our Hot Topic for details of the new regime.

HMRC’s latest newsletter was published on 4 April 2024. Among other updates, HMRC states that certain members may wish to delay transferring or taking benefits until a further set of regulations is in place (expected on 18 April 2024), so their available allowances and tax position “do not need to be revisited”. See our Alert for more details.

HMRC continues to update its Pensions Tax Manual and pension scheme administration guidance.

New DB funding legislation comes into force

The PSA21 sets out the framework for a new requirement for DB schemes to have a funding and investment strategy (“F&I Strategy”) in which trustees will set out how they plan to reach low dependency funding by the time the scheme is sufficiently mature.

On 6 April 2024, regulations implementing the new regime came into force. However, trustees won’t be required to produce their first F&I Strategy until 15 months after the effective date of the first actuarial valuation on or after 22 September 2024.

Other important elements of the new regime are still to be finalised, including TPR’s revised DB funding code and the statement of strategy. See our Alert for more details.