Developments in Employee Benefits law and practice

15 January 2018

Weekly update on new developments in the pension industry for week ending 15 January 2018: Fifth Work and Pensions Secretary in two years appointed after Cabinet reshuffle | Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2018 | Latest GAD Newsletter contains State pension warning | TPR successfully prosecutes Dominic Chappell for failing to provide information|

Fifth Work and Pensions Secretary in two years appointed after Cabinet reshuffle

Esther McVey has been appointed Secretary of State for Work and Pensions following a recent Cabinet reshuffle.

Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2018

Under these Regulations (SI 2018/5), The Registered Pension Schemes (Provision of Information) Regulations 2006 and the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 are amended to make changes to the information which a scheme administrator of a registered pension scheme is required to report to HMRC. The changes are in consequence of the reduced level of the money purchase annual allowance from £10,000 to £4,000 with effect from the tax year 2017/18.

A new reportable event where a scheme ceases to be or becomes a Master Trust scheme is also introduced.

These changes are effective from 30 January 2018.

Latest GAD Newsletter contains State pension warning

The latest Newsletter from the Government Actuary’s Department (GAD) observes that the most recent review by the Government Actuary has again found that, under the current arrangements, the National Insurance Fund is projected to be exhausted by the early 2030s. An article (on pages 6 and 7) looks at these results and some potential implications for providing the State Pension.

TPR successfully prosecutes Dominic Chappell for failing to provide information

The Magistrates Court, in The Pension Regulator v Chappell, has the defendant, the former owner of BHS after Philip Green sold the group to him for £1, guilty of three offences of neglecting or refusing to supply information or documents as required under section 72 of the Pensions Act 2004.

In April 2016, the Pensions Regulator served a section 72 notice requiring the provision of documents or information relating to the purchase of BHS group by Retail Acquisition Ltd. Mr Chappell was the majority shareholder in that company.

TPR served a further section 72 notice, in May 2016, sent by special delivery to the defendant’s home address. It emailed too and received a confirmation that the e-mailed had been received.

In February 2017, TPR served a third section 72 notice following his failure to respond to the earlier notices.

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