With a whirlwind of changes enforced in the last seven years the state pension age, which remained unchanged from the 1940s until 2010, is yet again in for a shake-up. On 18 July, David Gauke, Work and Pensions secretary announced plans to bring forward the increase in state pension age to 68 – this will … Continue Reading
As the central bankers of the world gathered at Jackson Hole last weekend and considered how and when to taper quantitative easing programmes (“just how long do we have to hold these government bonds?” must have been one of their breakout sessions), a salutary reminder of the continuing reality of the financial crisis that began … Continue Reading
It’s time to hang up on cold callers! The loss of pension savings can have a devastating impact on an individual’s plans for retirement but this is an unfortunate reality for those who have fallen victim to pension scammers. The UK Government’s consultation response on pension scams shows its clear intention to ban cold calling … Continue Reading
Trustees: don’t risk a fine due to a simple process failure! Reports show that transfer requests are steadily increasing in number and value. Suggestions are that this is due to the attractiveness of member choice and the introduction of new pensions flexibilities from 2015. So, with everyone talking about the impact of transfers-out on scheme … Continue Reading
With all the media frenzy over whether Theresa May has delivered on her (perhaps overly ambitious) promises on corporate governance reform, it is easy to miss the substance of what the Government has just announced. Although there are no bold new initiatives, there are plenty of changes that are designed to deliver nudges to corporate … Continue Reading
Employers can pursue pension plan change with renewed vigour following the publication of the judgment in the IBM appeal. They can now be less concerned about whether promises they have made in the past may bind them into the future, as the weight of an employee’s “reasonable expectations” argument has been significantly downgraded making it … Continue Reading
An important deadline is coming up for employers who have used the transitional period for schemes with defined benefits to delay their automatic enrolment duties. Whilst the transitional period has not been widely used – the Pensions Regulator’s most recent monthly compliance report sets out that, as at July 2017, approximately 433,000 workers have had … Continue Reading
In an episode that has potential for many sequels, the Pensions Regulator has turned its hand to time travel with a report on the conclusion of Phase 1 of its TPR Future project. TPR Future involves an assessment by the Pensions Regulator (TPR) of the way in which it complies with its statutory duties and … Continue Reading
The report resulting from the Taylor Review of Modern Working Practices (the Taylor Review), ‘Good Work‘, was finally published on 11 July 2017. The Taylor Review’s primary focus was new ways of working, the ‘gig’ economy, worker rights and responsibilities, and employer freedoms and obligations. Although tax was not (formally at least) within its remit, … Continue Reading
It is estimated that only around 28% of the EU’s 243 million citizens aged 25 to 59 years are currently saving into a pension. The European Commission considers that offering an alternative form of pensions vehicle will drive a change in behaviour. To this end, on 29 June, the European Commission proposed Regulations setting out … Continue Reading
The UK Financial Conduct Authority (FCA) published its final Report on its asset management market study yesterday. Key findings include: Asset management – the report finds evidence of weak price competition and recommends a number of remedial strategies, including improved transparency and an extension of the senior managers’ regime. However, the FCA has rejected the idea of … Continue Reading
The UK High Court has approved an application for judicial review brought by the Palestine Solidarity Campaign Limited against the Secretary of State for Communities and Local Government in a case which contains some fascinating principles of constitutional law.… Continue Reading
In Société Orange (decision QPC 28-4-2017 n°2017-627/628), the French Constitutional Council has ruled that the refusal of the tax authorities to reimburse an employer company’s compulsory social security contributions, made in respect of the grant of conditional bonus (or free) shares where the conditions are not subsequently met (such that the shares never vest), was … Continue Reading
The Conservative manifesto, ‘Forward, Together’, unveiled late last week by Theresa May, was notable rather less for reiterating commitments to traditional, small government, Conservative principles of ‘low tax’ and ‘better regulation’ and rather more for its embrace of social inclusion, identifying a “need [for] a partnership between the individual and the wider nation, between private … Continue Reading
Alongside the almost complete reversal of recent cuts in the main rate of corporation tax (returning it to 26% by 2020-21 – a rate not seen since 2011 or, rather, the time of the last Labour government), the proposal to introduce a so-called ‘Robin Hood’ tax on financial derivatives (a proposal mired by its own complexity … Continue Reading
Last week (4 May 2017), the European Commission published a legislative proposal to amend various provisions of the European Market Infrastructure Regulation (Regulation 648/2012) (EMIR). The proposal was adopted following a general report on EMIR published by the Commission in November 2016. Although the report indicated that “no fundamental change should be made to the … Continue Reading
Ever heard the phrase “omnia praesumuntur rite esse acta”? Me neither, until a Scottish court handed down its judgment in the case of Knight v Sedgwick Noble Lowndes. It has been known for some time that the Scottish courts generally take a pragmatic approach to the construction of pension plan documentation. For example, in a … Continue Reading
Do your pension plan rules marry-up with member expectations? Since the Millennium it is fair to say the world has changed a great deal for defined benefit pension plans. Not least of the changes trustees have had to contend with are those in respect of survivors’ benefits. The majority of defined benefit pension plans make … Continue Reading
We blogged in March and June 2016 about the new requirements for UK limited companies (including trustee companies, whether limited by shares or guarantee) to identify “persons with significant control” (PSCs). This requirement came in force on 6 April 2016. It was coupled with a requirement to notify Companies House of any PSCs, alongside your … Continue Reading
Trustees and pensions administrators should revise their transfer processes following an announcement in the UK Spring Budget designed to “tackle abuse of foreign pension schemes”. What’s the issue? In summary, where a member makes a formal request to transfer pension funds to an overseas pension plan the transfer will be an authorised payment provided that … Continue Reading
As we recently reported, 2017 is the year when most FTSE100 companies will be putting their new remuneration policies to a shareholders’ binding vote, against an increasingly hostile background of criticism of the size and complexity of directors’ pay packages. For the early starters in the FTSE100, there have already been casualties. Imperial Brands withdrew … Continue Reading
With Christmas and New Year parties well and truly over, and whilst trying to recall last year’s events, hopefully you will have remembered that contracting-out on a defined benefit basis was abolished with effect on and from 6 April 2016. Since then it has been a roller-coaster nine months (not just for pensions) so you … Continue Reading
Before the 2017 AGM season gets into full swing seems an opportune time to look back at what happened in the executive pay sphere during 2016 and forward to the challenges that remuneration committees face this year.… Continue Reading
After a busy 2016 in the pensions world it looks likely that 2017 will be just as eventful. The UK government will be following up on various consultations and finalising numerous pieces of legislation that are currently in draft. The planned green paper on DB pension reform should also make for some interesting reading, especially … Continue Reading
