Is life getting more complicated or am I getting old?
I remember a time when we used to start trustee training sessions with a simple explanation of the difference between defined benefit plans and money purchase plans. This was the easy bit – a nice gentle start.
Now it seems that the entire pensions industry is drawn into the debate of what constitutes a money purchase benefit, and what happens if you thought that you were running a money purchase arrangement but in fact you are not (in accordance with a legal definition that is to have retrospective effect). The recent consultation from the DWP seeks to address the practicalities of how much unravelling should be done. I, and the pensions team at Squire Sanders, have a fair number of concerns which we have addressed in our consultation response.
Now, re the question at the top… perhaps it is a “yes” to both… or perhaps I am just ready for Christmas!