Experts have welcomed the government’s recent consultation proposing a new deferred debt arrangement for employers in multi-employer pension schemes, but concerns over complexity of employer debt regulation remain.
The Financial Conduct Authority will prioritise retirement income provision within pensions in 2017-18, addressing perceived problems with consumers who do not take regulated financial advice, as some argue schemes should organise Pension Wise sessions by default.
Prime Minister Theresa May’s announcement of a snap general election on June 8 this year has left pension commentators divided over the effect this might have on pensions policy.
The Prudential staff scheme is due to amend its DC default fund this year in light of the introduction of freedom and choice, amid concerns that some schemes are choosing to wait for retiree data to help them design their default.
The Labour party has launched a pensioners’ pledge card, promising to extend the triple lock until 2025, compensate some of those affected by increases in women’s state pension age, and to protect the pensions of UK citizens overseas.
A legal dispute involving trustees of the Johnston Press Pension Plan about the equalisation of retirement ages has been put to bed by the Scottish Court of Session, using a quirk of law known as the “presumption of regularity”.
The Financial Conduct Authority has published a progress report on its Financial Advice Market Review, alongside a consultation that sets out proposed guidance, but reactions in the pensions industry show there is still a long way to go.
A memorandum of understanding has been signed by John Menzies and trustees of its pension scheme as it has closed the scheme and plans to begin a sectionalisation process, but experts have highlighted that this sort of agreement is rarely legally binding.
Two years have passed since the government introduced the pension freedoms, and although the flexibilities have improved engagement to some extent, the increased complexity has also led to confusion.
A High Court judgment on the method for increasing pension payments where a power of amendment was improperly applied has been overturned by the Court of Appeal, lessening the burden on the corporate sponsor.