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UPDATES TO CONTENT

This Update revises content at this site www.gpt-online.com and updated pages are automatically sent to subscribers to the hardcopy Guide for Pension Trustees. To help you locate the most recent changes, see the table: Summary of Main Revisions from this Update at the bottom of this page.

Well done everybody! It's been another busy year coping with further Regulations and changes to existing regimes. How was it for you? When I first applied to work in pensions, I was told in no uncertain manner: 'If you are a person who can't cope easily with change don't work in occupational pensions'. How appropriate was that? Fortunately, I can 'do change' (and sometimes even love it) but constant change can get wearisome.

So here is the good news: the period since July 2009 has been relatively quiet, possibly explained by what went on over the first six months of 2009, including:

●  the introduction of Code 12 – Application of Material Detriment Test [see 16.3.8 (A) and 16.3.8 (B)]
●  the publication of certain initial detail relating to the introduction of 'Personal Accounts' (this title will eventually be changed). There is now no doubt that, in one way or another, all employers (small, medium and large) will be affected with auto-enrolment and/or compulsory employer/employee contributions, both directly from October 2012 and before then [see 2.10]
●  new regulatory guidance – Record keeping: good practice in measuring data – leading to a call for data cleansing [see 10.1]
●  new regulatory guidance: Mortality Assumptions – good practice when choosing mortality assumptions [see 14.4.3]
●  a review of the disclosure requirements and DWP proposals for reform [see 11.1]
●  a new fourth band for National Insurance contributions [see 1.4.5 (Note)]
●  changes to the revaluation of early leaver benefits [see 24.3.9(d)]
●  conversion of Guaranteed Minimum Pension (GMP) [see 17.2.3 (Note)]
●  changes to the Notifiable Events listing [see 11.5.3]
●  changes to benefits calculated by reference to the Upper Earnings Limit (UEL) and/or linked to UEL [see 1.4.5 and its Note]
●  changes to the limits for cashing out small pension 'pots' – new HMRC rules, effective 1 December 2009 [see 24.5.3]
●  a new Equality Bill [see 10.9.22]
●  a new draft Code of Practice No 7 – Trustee Knowledge and Understanding – leading to a complete revamp of the order of the indicative syllabus [see 25.10(vii) and 26.2], and
●  new powers for Pensions Regulator to impose penalties on employers who fail to consult. Source: HM Government Code of Practice on Consultation [see 16.8.1, 16.8.4 & 16.8.3].

In this Update…

More detail about Personal Accounts

Including:

●  confirmation that, once the Personal Accounts regime is fully in place (by October 2012), there will be an end to the existing statutory duty on employers to have a designated stakeholder pension scheme (or alternative 'qualifying scheme'). This change is brought in by the Pensions Act 2008 which amends the Welfare Reform and Pensions Act 1999 [see 2.10.1 and 2.14.3 (Note)]
●  new facts about auto-enrolment [see 2.10.1] and the Pension Regulator's role in contacting employers to confirm the action to be taken and what is needed to comply [see 2.10.2 (Note,) 2.10.4 and 25.0]
●  confirmation of the information to be provided:
    – from the employer to the chosen Personal Accounts scheme [see new 2.10.6]
    – to in-service members of existing schemes [see new 2.10.8 and its Note]
●  new powers for the Pensions Ombudsman to investigate complaints relating to 'jobholders' and opting out of an auto-enrolment scheme [25.4.4 confirms], and
●  new powers for the Pensions Regulator regarding employers' duties in respect of auto-enrolment [see 25.0].

Appointment of independent trustees

The Pensions Regulator may now appoint trustees in circumstances where it is 'reasonable' (previously, 'necessary') to do so [see 4.4.6].

Pensions Sharing – Scottish law

TThe timescale for receipt at court of pension sharing orders is confirmed [see 10.7.6].

Buy-out/Buy-in

More detail is provided on what buy-outs/buy-ins involve [see 16.3.5] and their aims [see 16.3.6 and 25.6.14].

Conversion of Guaranteed Minimum Pension (GMP)

It has been confirmed that conversion of GMP on transfer out requires member's consent [see 17.2.6 {Note)].

Bulk transfers

The Guide confirms that there is no requirement on the scheme actuary to give an opinion on how reasonable the amount of any bulk transfer value might be. Trustees must satisfy themselves that the payment is consistent with their responsibilities under trust law and duties to remaining members [see new 17.4.9 (Note)].

With-profits policies

More detail is included on the reason for market value reductions/adjustments [see 20.1.6 (Note)].

And lastly:

Financial Services Compensation Scheme

New detail is included – relevant to buy-outs/buy-ins [see 25.6.14].

A very happy Christmas and prosperous New Year to all subscribers!

SUMMARY OF MAIN REVISIONS FROM THIS UPDATE

The Guide's regular Updates help keep it up to date with important and topical new items, but changes to pages can also include new technical terms, changes to organisations' names, new cross-references and a variety of minor revisions, as well as description of legislative, technical and other material, and useful tips or simply interesting additions. Here is a summary of the main changes made by this Update.

This update loaded 25 January 2010

Previous 'What's New' Items.