Developments in Employee Benefits law and practice

30 December 2018

Developments in December 2018

  • Consultation on proposed legislative framework for the authorisation and regulation of defined benefit (DB) consolidators (“superfunds”). The consultation period closes on 1 February 2019 and the DWP intends to legislate “when Parliamentary time allows”.

  • Feasibility report and consultation paper about pensions dashboards. The DWP envisages an industry-led system of multiple dashboards, which will allow consumers to access their pension information in one place.

  • Court of Appeal rejected an appeal by BT against a High Court ruling that the Retail Prices Index (RPI) had not become inappropriate for the purpose of calculating annual increases to pensions in payment.

  • High Court issued a supplemental judgment in the Lloyds Bank Guaranteed Minimum Pension (GMP) case. The court accepted the submissions of the Banks and the Crown that, in order to implement equalisation method “D2”, it was not necessary to equalise benefits in accordance with method “C2” first of all.

  • Pension Protection Fund published its final levy rules for the 2019/20 levy year, confirming the levy estimate of £500 million. 

What to expect in 2019 

  • January 2019: planned launch for new Single Financial Guidance Body replacing, inter alia, Pensions Wise.

  • January 2019: Regulations banning pensions cold calling comes into force.

  • January 2019: Transposition deadline for IORP II (pension fund) Directive into UK national laws.

  • January 2019: DWP consultation on collective defined contribution pension schemes closes.

  • March 2019 (unless extended): Brexit – UK leaves EU.

  • Q1 2019: Consultation on a revised Defined Benefits Code of Practice on Funding.

  • March 2019: Deadline for the Competition and Markets Authority to complete the market investigation reference in relation to the supply and acquisition of investment consultancy and fiduciary management services to and by institutional investors and employers.

  • April 2019: HMRC withdrawal of VAT exemption for pension fund management services.

  • April 2019: Auto enrolment contributions increase to ‘steady state’ level.

  • October 2019: Statement of Investment Principles to meet new requirements on ESG and stewardship.

Contact:

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