Developments in Employee Benefits law and practice

07 May 2018

Guidance on DC bulk transfers

The Department for Work and Pensions has published guidance to help trustees comply with new regulations from April 2018 covering bulk transfers of money purchase rights that do not include guarantees.

https://www.gov.uk/government/publications/occupational-pensions-bulk-transfers-without-consent-of-money-purchase-benefits-without-guarantees

Financial Guidance and Claims Bill

Parliament has agreed on the text of the Bill and Royal Assent is scheduled for 10 May 2018.

https://services.parliament.uk/Bills/2017-19/financialguidanceandclaims.html

HMRC Pensions Newsletter 98

The HM Revenue and Customs has released a new edition of the Pension schemes newsletter 98 for May 2018.

The newsletter outlines, among other things:

  • delays to the Manage and Register Pension Schemes service first features
  • pension flexibility statistics
  • registration statistics
  • annual allowance calculator

https://www.gov.uk/government/publications/pension-schemes-newsletter-98-may-2018/pension-schemes-newsletter-98-may-2018

Post-Brexit pension scheme issues

The European Commission has published a notice to stakeholders - “Withdrawal of the United Kingdom and EU rules in the field of institutions for occupational retirement provision – which highlights some of the possible consequences for UK occupational pension schemes when Britain leaves the EU on 29 March 2019.

Issues highlighted include:

  • Before the withdrawal date, UK-authorised IORPs that are active cross-border in EU member states should contact the “competent authorities” of the relevant member state to confirm what conditions will apply if they wish to continue that activity.
  • EU-based sponsors of IORPs that pay contributions to a UK-registered IORP should assess the conditions for the continuation of the scheme based on the national law of the sponsor’s host EU member state. If continued cross-border activities are not allowed, the IORP should either be transferred or an alternative IORP found.
  • Post-withdrawal, members and beneficiaries whose relationship with an EU-based IORP is governed by UK pensions law will no longer benefit from IORP II even if the IORP is registered or authorised in an EU member state. How the scheme can provide for UK-based members will depend on the relevant law of the member state where the IORP is based.

https://ec.europa.eu/info/sites/info/files/180427-notice-withdrawal-uk-iorp_en.pdf

Three new CMA papers

As part of its investigation into the market for investment consultancy and fiduciary management services, the Competition and Markets Authority (CMA) is currently publishing a series of eight Working Papers. These outline the CMA’s emerging thinking and analysis on a series of key issues and provide an opportunity for comment.

On 26 April, the CMA published three further papers on:

  • Barriers to entry and expansion
  • Financial performance and profitability
  • Competitive landscape

https://www.gov.uk/cma-cases/investment-consultants-market-investigation

Flexible payments from pensions: latest HMRC statistics

Flexible payments from pensions: latest hmrc statistics width=

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/702624/Pensions_Flexibility_Apr_2018.pdf

Contact:

John W. Wilson LLB(Hons) FPMI ACII, Head of Research| Email: john_wilson@jltgroup.com

Stephen Williams, Senior Research Consultant | Email: stephen_williams@jltgroup.com