| PARLIAMENT | Effective Date | Effect |
| Bills (and Acts not yet in force) | ||
| Finance Bill 2024 – 2025 | In House of Commons, due to be enacted by 5.4.25 | Changes to treatment of transfers to QPOPS in EEA and conditions for QROPS in EEA. |
| Data (Use and Access) Bill | House of Lords Second Reading 19.11.2024 | Intended to harness data power for economic growth and support modern digital government. Reform of the Information Commissioner’s role, including stronger powers. |
| Pension Schemes Bill | Not yet published | To include consolidation of DC small pots, value test for DC arrangements; trustees of DC occupational schemes to provide retirement solutions including default investment options; and commercial superfunds legislation. Click here for article in October 2024 Pensions Compass. |
| GMP Conversion – Conversion of GMPs Act (Royal Assent 28/4/2022) | Not yet in force | Facilitates converting GMPs once relevant Regulations made. Still awaiting DWP’s Consultation on draft Regulations. Click here for article in June 2022 Pensions Compass. |
| Cyber security and Resilience Bill | King’s Speech 17/7/2024. Parliamentary timetable awaited. | Strengthening cyber security defences. The government acknowledges that the UK legislation is outdated. The Bill may in part draw on the lapsed Data Protection and Digital Information Bill. |
| Audit reform and Corporate Governance Bill | King’s speech 17/7/2024. Parliamentary timetable awaited. | The Bill is intended to pave the way for robust scrutiny of large companies by auditors and greater transparency of their finances. The Financial Reporting Council will be replaced by a new Regulator, the Audit, Reporting and Governance Authority with greater powers. WB comment: potentially assists employer covenant assessment. |
| Recent Acts in force | ||
| Finance Act 2024 | Royal Assent 22 February 2024 with effect from 6 April 2024 | Replaces Lifetime Allowance with new Lump Sum Allowance and Lump Sum and Death Benefit Allowance. Click here for the article in Part 1 of March 2024 Pensions Compass. |
| Pensions Dashboards (Prohibition of Indemnification) Act 2023 | Royal Assent 2 April 2023, into effect 1 January 2024 – Pensions Dashboards Prohibition Regs SI 2023/1414 | Trustees reimbursed out of scheme assets for TPR fines under the Dashboards Regulations constitutes a criminal offence if they know or have reasonable grounds to believe they have been reimbursed. |
| Economic Crime and Corporate Transparency Act 2023 | Royal Assent 26 October 2023 | Tightens operation of Companies House and company structures e.g. in relation to corporate directors. Regulations laid in Parliament brought many provisions into force on 26 April 2024. |
| Online Safety Act 2023 | 26 October 2023 | Hopefully will assist in combating fraud including pension fraud. |
| Pensions (Extension of Automatic Enrolment) (No. 2) Act 2023 | Royal Assent 18 September 2023 | Empowers Secretary of State to make Regulations (1) extending auto-enrolment to all jobholders aged at least 18 in place of the current minimum age of 22 years, and (2) removing the lower qualifying earnings threshold. The Act requires the Secretary of State to consult on the Regulations -Consultation awaited. |
| Financial Services and Markets Act 2023 | Royal Assent 29 June 2023 | Updates the UK’s framework for financial services. |
| Forthcoming Regulations (including Expected Regulations) | ||
| 2024 Consultation on Collective Money Purchase Schemes Regulations | On 8 October 2024 the DWP issued their consultation on 2 sets of draft regulations. The consultation closed on 19 November 2024. One set paves the way for CDC schemes for unconnected multiple employer schemes, and the other set amends provisions relating to connected employer CDC schemes. | |
| GMP Conversion Regulations | Timing unclear, as Consultation on draft Regulations still awaited | See above under Conversion of GMPs Act. |
| Notifiable Events Amendment Regulations | Timing uncertain – may be late 2024 or 2025 | Additional Events to be notified to TPR and to scheme trustees (change in control of an employer, sale of material proportion of business or assets and/or granting of certain security rights). DWP’s Consultation on these proposed controversial Regulations closed on 27 October 2021 and DWP’s Response is awaited. Click here to listen to our December 2021 Podcast. |
| Extension of Automatic Enrolment Regulations | Timing uncertain | See above under Pensions (Extension of Automatic Enrolment) (No. 2) Act 2023. |
| Recent Regulations | ||
| DB schemes – Funding and Investment Strategy Amendment Regulations 2024 | Laid in Parliament 29 January 2024 and came into force 6 April 2024 | Regulations reflect significant amendments to the Pensions Act 2004 scheme specific funding regime by Pension Schemes Act 2021. Click here for the article in March 2024 Pensions Compass. (On 29 July 2024 TPR’s revised Funding Code of Practice was laid in Parliament and came into force on 12 November 2024. Click here for the article in Part 2 of October 2024 Pensions Compass). |
| Retained EU Law Regulations | Made on 17 September 2024 and came into force on 18 September 2024 | The provisions enabling the UK courts to depart from retained EU case law more easily are revoked whilst the new government considers its position. |
| Further Regulations re Abolition of Lifetime Allowance | 6 April 2024 | These two sets of further detailed tidying-up Regulations came into force on 18 November 2024, with effect from 6 April 2024. |
| Regulations relating to Abolition of Lifetime Allowance Charge | 6 April 2024 | These Regulations make numerous changes to Finance Act 2024. Click here for the article in Part 4 of June 2024 Pensions Compass. |
| Authorised Surplus Payments Charge (Variation Rate) Order 2024 | 6 April 2024 | Reduces the amount of tax due on authorised surplus repayment from 35% to 25%. Click here for the article in Part 4 of December 2023 Pensions Compass. |
| Regulated Activities Amendment Order – Operators of pensions dashboards | 11 March 2024 | The Order authorises the Financial Conduct Authority to regulate commercial operators of pensions dashboards. Such operators must either be or become authorised by the FCA. |
| Pensions Dashboards Amendment Regulations 2023 | 9 August 2023 | The December 2022 Regulations specified statutory connection deadlines. However, there were IT connection problems. The August 2023 Pensions Dashboards Amendment Regulations amend the December 2022 Regulations and specify a single statutory connection deadline of October 2026 with staging to be included in Guidance as published on 25 March 2024. Click here for the article in Part 3 of June 2024 Pensions Compass. |
| FROM THE COURTS | RECENT DECISIONS |
| Rectification: National Union of RMT v Tyne and Wear Transport Executive Supreme Court 13th November 2024 | The Supreme Court decided that whilst the Employment Tribunal cannot rectify (correct) a document it can treat a document as rectified where equitable to do so. Query, whether the legal principle applies to other statutory Tribunals such as the First Tier Tax Tribunal and Pensions Ombudsman. |
| Rectification: Ballard v Buzzard High Court 4 November 2024 | The High Court accepted that a signature on behalf of the employer to a rule change could in the circumstances be accepted as also being a trustee’s signature. |
| Cohabitation under the LGPS rules Thomas v Southwark Council High Court 31 October 2024 | Successful appeal against Pensions Ombudsman’s determination re meaning of cohabitation. Click here for the article in Part 1 of this Pensions Compass. |
| Unauthorised payments via QROPs Greene v HMRC First Tier Tax Tribunal (“FTT”) 14 October 2024 | The FTT upheld unauthorised payments tax assessments in context of taxpayer’s QROPs and subsequent transactions. |
| Conflict of interest Irwin Mitchell Trust Corporation v The Public Guardian Court of Protection 19 March 2024 | Whilst not a pension case, the decision is of interest in that the fiduciary (the trust corporation managing X’s affairs) had appointed a related investment company as investment manager of X’s funds. The Court held that the risk of conflict had not been extinguished. Case adjourned for further evidence. |
| Newell Trustees v Newell Rubbermaid High Court 23 January 2024 | In context of conversion to money purchase, the High Court upheld the final salary underpin but based on actuarial value. Click here for the article in Part 5 of March 2024 Pensions Compass on this interesting decision. |
| Final salary underpin Avon Cosmetics v Dalriada & Others 17 January 2024 and 19 February 2024 | Using “severance” principles the High Court upheld the switch to CARE benefits for future service, but for past service members should receive the better CARE and Final salary linked benefits underpin: on 19 February 2024 the Court approved a compromise agreement as to effect of the underpin. Click here for the article in Part 5 of March 2024 Pensions Compass. |
| Tax treatment of facilitation payments E.ON UK v HMRC Court of Appeal 7 November 2023 | Whether employer payments to employees regarding adverse pension scheme changes are taxable. The First-Tier Tribunal ruled, yes. The Upper Tribunal ruled, no, on the basis that the payments were not “from” the employment. The Court of Appeal reversed the Upper Tribunal decision and agreed with the First – Tier Tribunal that the payments to employees were subject to income tax and NICs. |
| Recouping overpayments Pensions Ombudsman v CMG Court of Appeal 1 November 2023 | Court of Appeal unanimously decided the Pensions Ombudsman was not a “competent court”; scheme trustees need to obtain a county court order to recoup overpaid pension from future pension payments. Click here for the article in Part 4 of December 2023 Pensions Compass and here for the article in Part 1 of October 2024 Pensions Compass (Pension Schemes Bill awaited). On 19 December 2023 in a complaint involving the AECOM Group Pension Scheme the Pensions Ombudsman gave effect to the CMG decision and on 20 December 2023 published its views on the CMG decision. See also the Pensions Ombudsman’s detailed decision in the case of Mr E and the Bic UK Pension Scheme 19 April 2024. |
| Surplus on winding up Standard Life Trustee 1 August 2023 | Decision of Inner House of Court of Session of Scotland in the context of the scheme rules which were silent on the point, the Court decided the surplus should be held on resulting trust for the current employers. Click here for the article in Part 2 of October 2023 Pensions Compass. |
| Trustee’s petition to wind up scheme’s sponsoring employers Brass Trustees v Goldstone and PPF 31 July 2023 | High Court approval given to scheme trustee to issue petition to wind up the scheme’s sponsoring employers. |
| Employer’s appeal about alteration powers BBC v BBC Pension Trust & Another 9 July 2024 | On 28 July 2023 the High Court decided that, based on the scheme rules, members’ “interests” extend to future benefits as well as past. On 9 July 2024 the Court of Appeal unanimously upheld the High Court decision. Click here for the article in Part 3 of October 2024 Pensions Compass. |
| Validity of amendments in absence of section 37 actuarial written confirmation Virgin Media v NTL Pensions 25 July 2024 | Virgin Media asked the High Court to decide whether certain scheme amendments relating to revaluation were valid. It was argued the scheme amendments affecting contracted -out benefits should have been accompanied by written actuarial confirmation under section 37 Pension Schemes Act 1993. The Court was asked to assume there was no actuarial confirmation. On 16 June 2023 the High Court decided that, in the (assumed) absence of written actuarial confirmation, the amendments in question were void. On 25 July 2024 the Court of Appeal unanimously upheld the High Court’s decision. Click here for the article in Part 3 of October 2024 Pensions Compass. |
| Creditor’s right to force draw down pension Manolete Partners PLC v White Court of Appeal 15 November 2024 | Whether the Court should direct a member, a former director of a company, to draw his pension to satisfy a judgment debt owing to a creditor for breach of director’s duties. On 16 March 2023 the High Court so ordered saying that section 91(2) Pensions Act 1995 was no bar as the member was to be paid his pension, albeit it would then be used by his creditor. On 15 November 2024 the Court of Appeal reversed the High Court’s decision, holding that such an order infringed section 91 (2) Pensions Act 1995 which says that an order cannot be made to restrain a member from receiving a pension due under an occupational pension scheme. |
| Forfeiting arrears due to members more than 6 years ago, and trustees’ recouping overpayments CMG Trustee v CGI Limited High Court, 11 August 2022 | Members had been paid extra pension benefits in the past following the scheme’s sex equalisation process and corrective scheme amendments. The employer argued that the arrears paid were too great and should in accordance with its reading of the scheme’s rule be limited to amounts due not more than 6 years previously and even though the members concerned were unaware of their claims. The High Court upheld the employer’s view and also explained how the legislation relating to trustees recouping overpayments from future pension works. See above for the Court of Appeal’s decision on 1 November 2023 on the need for a County Court Order. NB forfeiture and recoupment are complex legal areas on which legal advice is essential. |
| FROM THE COURTS | FUTURE CASES |
| Scheme amendments Verity Trustees Ltd v Wood High Court February 2025 | Application by the sole trustee of the Pensions Trust requesting Court directions about restrictions on the scheme’s amendment power. This MAJOR CASE is expected to last many weeks. It involves the scope and effect of a scheme amendment power. It is expected the court may rule on several ancillary questions arising from the Court of Appeal’s Virgin Media decision, see above. Due to the complexity and amount at stake, judgment is not expected until later this year, may be even after the Summer. |
| Various Part 7 Claims against Verity Trustees Ltd | We understand some employers participating in the Pensions Trust have brought claims against the trustee alleging breach of duty, and that these claims have been stayed pending the outcome of the above High Court proceedings. |
| Value of Investments Legal and General Assurance and Others v Glencore PLC High Court February 2025 | Following Glencore admitting in the US courts various violations L&G and 4 of its funds have lodged a Part 7 claim against Glencore. |
| PPF | |
| PPF Levy Rules for 2025/2026 | On 12 September 2024 the PPF published its Consultation on its Levy Rules for the PPF Levy Year 2025/2026. The Consultation closed on the 23 October 2024. [The Levy Rules are due to be finalised]. |
| DWP | |
| 2023 Consultation on Options for Defined Benefits Schemes | Following the 2023 Autumn Statement (click here for the article in Part 2 of December 2023 Pensions Compass), on 23 February 2024 the DWP issued a Consultation on changing the law by 2026 (1) to make it easier for trustees of private sector schemes to make payments to sponsoring employers and members out of surplus; and (2) to provide for the Pension Protection Fund to operate as a public consolidator for schemes unattractive to commercial providers. The Consultation on both proposals closed on 19 April 2024. The King’s Speech on 17 July 2017 did not mention the surplus aspect or the PPF acting as public consolidator. Nor were these matters mentioned in the Chancellor’s November 2024 Mansion House Speech. |
| Treasury | |
| Government Pensions Review (Mansion House Reforms ) | The Treasury jointly with DWP and the Ministry of Housing Communities and Development issued on 16 August 2024 the Terms of Reference for phase one of their pension Review, concentrating initially on investment and reporting on this later in the year ahead of the introduction of the Pension Schemes Bill next year. In her Mansion House Speech on 14 November 2024 the Chancellor announced proposals for UK pension investment, including proposals to deliver scale and consolidation in the DC market and Local Government Pension Scheme. The Consultations close on 16 January 2025. Click here for the Article in Part 3 of this Pensions Compass. |
| TPR | |
| TPR Updated Detailed Covenant Guidance | On 4th December 2024 TPR published its long awaited Updated Detailed Employer Covenant Guidance. |
| TPR Regulatory Intervention Report | On 1 October 2024 TPR published its report on successfully imposing a Contribution Notice on an individual in relation to the Meghraj Group Pension Scheme. |
| TPR encourages DC trust based schemes to respond to VFM (Value For Money) Consultation | On 8th August 2024 the FCA issued a Consultation on VFM. Although it relates to FCA regulated contract-based schemes, the Consultation proposals are also designed to be suitable for application across the DC workplace pensions market. On 29 August 2024 TPR called on trust -based DC schemes to consider and respond to the Consultation. The Consultation closed on the 17 October 2024. |
| (1) TPR’s illustrative Strategy Statements (2) TPR’s Fast Track Submission Tests and Conditions | (1) On 23 September 2024 TPR published draft Strategy Statements templates for DB schemes valuations with effective dates from 22 September 2024 onwards. Click here for the article in Part 2 of October 2024 Pensions Compass. (2) On 20 November 2024 TPR published the Fast Track rules for DB schemes valuations from 22 September 2024. |
| TPR’s new DB Funding Code of Practice | On 29 July 2024 TPR’s new DB Funding Code of Practice for DB schemes with effective valuation dates on or after 22 September 2024 was laid in Parliament and came into force on 12 November 2024. Click here for the article in Part 2 of October 2024 Pensions Compass. |
| TPR’s updated Guidance on Superfunds | This now includes TPR’s expectations on release of capital. The Guidance is likely to operate for a significant period. Superfunds are to be put on a statutory footing under the Pension Schemes Bill but this may be a long legislative process. Click here for the article on the Pension Schemes Bill in Part 1 of October 2024 Pensions Compass. |
| TPR’s Single Code of Practice, now called the General Code of Practice | On 10 January 2024 the General Code of Practice was laid in Parliament and took effect on 27 March 2024. Click here for our Update published on 17 January 2024 and here for the article in Part 2 of March 2024 Pensions Compass. |
| HMRC | |
| Autumn Budget 30 October 2024 | The new Chancellor’s first budget. Click here for the article in Part 4 of this Pensions Compass on the proposed imposition of inheritance tax on unused pension and death benefits from 6 April 2027. |
| Regulation of Pensions Tax Advice – HMRC’s proposals | On 23 March 2021 HMRC proposed that all tax advisers should have mandatory professional indemnity insurance, and how to define “tax advice” for these purposes. The Consultation closed on 15 June 2021. Subsequently HMRC announced it would not pursue mandatory insurance. On 11 May 2023 HMRC published an updated Standards for Agents. On 6 March 2024 HMRC published a further Consultation on strengthening the regulatory framework. The Consultation closed on 29 May 2024 and the Government issued its response to the consultation on 30 October 2024. |
| Modernising and mandating tax adviser registration | On 30 October 2024 the government announced funding to modernise HMRC Tax Registration services and will require registration of tax advisers who interact with HMRC on behalf of clients from April 2026. |
| New Allowances replacing the Lifetime Allowance: HMRC Guidance Newsletters and HMRCs revision of the Pensions Tax Manual | Click here for the article in Part 1 of March 2024 Pensions Compass and here for the Update article in Part 4 of June 2024 Pensions Compass. In its Newsletter 163 published on 24 October 2024 HMRC confirmed that further corrective Regulations have been made – see under PARLIAMENT Recent Regulations in this Pensions Compass. |
| PENSIONS DASHBOARDS | |
| PASA’s Toolkit for AVCs | Guidance from PASA re practicalities of connecting to dashboards re AVCs. |
| Pensions Dashboards Programme (PDP) – Technical Standards | In September 2024 the PDP issued Technical Standards containing mandatory requirements for the interaction of parties and their interaction with the PDP’s central digital architecture. |
| TPR’s Pensions Dashboards Compliance and Enforcement Policy | On 5 September 2024 TPR published its Policy in this area including examples of TPR’s approach in 4 scheme scenarios. |
| PDP on 19 November 2024 | Publications of following draft versions: – version 1.2 of reporting standards – version 1.3 of data standards; and – version 1.2 of code of connection (how pension providers and schemes are to connect and remain connected to dashboards). |
| TPR – Updated Checklist for trustees | On 12 April 2024, TPR reissued its Checklist for schemes preparing for Pensions Dashboards. |
| Staging Guidance | Issued by DWP on 25 March 2024. Click here for the article in Part 3 of June 2024 Pensions Compass. |
| OTHER DEVELOPMENTS | |
| DC SMALL POTS | On 30 January 2023 DWP called for evidence on amalgamating deferred pensioner’s small pots. The Consultation closed on 27 March 2023. On 11 July 2023 the DWP Response and further Consultation proposed a Consolidator model under which Government would create a clearing house to match pots to member followed by allocation to consolidators; members would be given choice where possible; pots would d be eligible for consolidation after 12 months of the last contribution with such pots being no larger than £1000. This further Consultation closed on 5 September 2023. An initiative on small pots was announced as part of the then Chancellor’s Autumn Statement on 22 November 2023. The new Pension Schemes Bill is to cover small pots, Click here for the article in Part 1 of October 2024 Pensions Compass. |
| BANK OF ENGLAND | |
| Bank of England concern regarding Reinsurance overseas by UK insurers in the buy-out market | The Prudential Regulation Authority, supervisory arm of the Bank of England, has issued a Consultation on the risks of UK insurers reinsuring with overseas reinsurers. The Consultation closed on 16 February 2024. |
| HOUSE OF COMMONS WORK AND PENSIONS COMMITTEE (WPC) | |
| Pension Investment | On 17 April 2024 the WPC’s letter to the Pensions Minister suggested various areas of enquiry to help the Government clarify fiduciary duties in relation to climate change. |