News | September 21, 2022

Pensions Ready Reckoner

Clive Weber, Consultant, Pensions & Employee Benefits Team. Please contact Clive with any queries on this Ready Reckoner.

PARLIAMENTEffective DateEffect
Recent Acts
Finance Act 20226 April 2022Various measures including:

Provisions to facilitate the transfer of dormant assets (see below).

Changes to scheme administrators’ obligations to pay members’ annual allowance charges.

Increase in NMPA from age 55 to 57 from 6 April 2028; click here for the article in February 2022 Pensions Compass; our article in “Professional Pensions” can be viewed here.
Dormant Assets Act – Royal Assent 25/02/2022In stagesAimed at reuniting individuals with their ‘lost’ financial assets including lost life insurance and retirement income policies, and where not possible, providing for the money to be used for social and environmental purposes. On 27th May 2022 certain parts of the Act were commenced.
Pension Schemes (Conversion of GMPs) Act 2022 – Royal Assent 28/04/2022Not yet in forceWill simplify GMP conversion once the relevant Regulations are made. DWP’s Consultation on the proposed Regulations is still awaited. HMRC has issued limited guidance on tax treatment on GMP conversion – click here for the article in June 2022 Pensions Compass and here for “Stop-Press” in this Pensions Compass.
Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations30 November 2021Helping trustees spot and block scam transfer requests. Click here for our article in December 2021 Pensions Compass. DWP agrees that references to overseas investments in the Regulations may need amending (DWP and TPR joint statement issued on 5 July 2022 re overseas investments).
OPS & PP Regulations re DC Annual Statements1 October 2021Requirement to issue DC members in auto-enrolment arrangements with simpler, shorter annual benefits’ statement.
OPS and PP Regulations 2022 – Requirements to refer DC members to guidance provided by Pensions Wise1 June 2022Known as the “stronger nudge” initiative, trustees of relevant DC schemes must send more information to DC members to help ensure members receive relevant guidance before members can transfer or access their flexible DC benefits.
Collective Money Purchase Schemes Regulations 20221 August 2022Authorisation and supervisory regime for Collective Defined Contribution (CDC) schemes, under which scheme members share investment and longevity risk – Royal Mail employees are the first candidates.
Climate Change Governance and Reporting Amendment Regulations1 October 2022Amends the 2021 Regulations so that trustees of schemes within scope must “insofar as they are able” apply a metric to measure alignment with the Paris Agreement climate goal. DWP’s non-statutory Guidance and statutory Guidance are both expected to come into force on 1 October 2022. They are not confined to the largest schemes, and relate to voting rights and investor engagement and reporting. Click here for the article in this Pensions Compass.
Amendment Regulations relating to fiduciary managers and investment consultants1 October 2022Amendments to the Scheme Administration Regulations 1996 to align pension legislation relating to trustees use of fiduciary managers and/or investment consultants, with requirements under the Competition and Markets Authority Order 2019. See also TPR’s 4 August 2022 Guidance.
Online Safety Bill (re-published on 11/05/2022)Autumn 2022?Hopefully will make life harder for pension scammers and other fraudsters. See also the Conditions For Transfers Regulations above. The first and second Readings of the Bill in the House of Commons occurred on 11/05/2022. The Third Reading is due this Autumn on a date to be announced.
Boycotts, Divestment and Sanctions BillPublication later in 2022Measures to ensure public bodies (including, it seems, the Local Government Pension Scheme) carry on procurement and investment activities in line with Government policy.
Pensions Dashboards/
Prohibition of Indemnification Bill
Second Reading on
15 July 2022, into force Spring 2023?
New criminal offence for trustees to reimburse themselves out of scheme assets for TPR imposed penalties under the proposed Dashboard Regulations (see below).
Notifiable Events Amendment Regulations (DB schemes)Delayed, 2022 Q4 or later?Proposed new events to be notified to TPR and 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 Regulations closed on 27 October 2021 and the DWP Response is overdue. These new proposed notifications are controversial – click here to listen to our December 2021 Podcast and here for Stop-Press in this Pensions Compass.
Draft Extension of Automatic Enrolment BillReintroduced in Parliament on 05/01/2022 and second Reading due 28 October 2022.Private Member’s Bill to extend AE to all jobholders aged at least 18 (presently age 22 minimum) and to remove the lower qualifying earnings threshold.
Indicative draft Pensions Dashboard Regulations 2022Consultation published 31/01/2022. DWP Response July 2022. Regulations expected to be finalised and made in Q4 2022.DWP’s Consultation closed on 13 March 2022. It is presently envisaged that large schemes (minimum 1000 active/deferred members) will need to connect to the Dashboard between April 2023 to September 2024, with a timetable in 2024/2025 and onwards for smaller schemes. The requirements for scheme trustees to connect to the dashboard and the data to be provided are specified in the draft indicative Regulations. Click here for the article in March 2022 Pensions Compass and below for listing in this Pensions Compass of pensions dashboard materials.
Draft Funding and Investment Strategy Amendment RegulationsQ4 2023?On 26 July 2022, DWP’s Consultation on these far reaching proposed amending Regulations opened. Click here for the article in this Pensions Compass.
Beattie v 20-20 Trustee Services and Federal Mogul LtdIn a preliminary hearing at the Employment Tribunal, the Tribunal decided the exceptions for age discrimination for pre 1 December 2006 benefits were incompatible with EU retained by the UK since Brexit. An appeal by DWP is due to be heard by the Employment Appeal Tribunal in November 2022.
Limitation and forfeiture ‘Axminister’ Penson Pension High Court, 17 June 2021The same Judge as in the November 2020 Lloyds Bank GMP equalisation case (see above) confirmed his view that the Limitation Act does not apply to claims for pension arrears as they are claims to recover trust property. However, scheme rules may limit such claims depending on their wording. Click here for our review of the Axminister case in the July 2021 issue of Pensions Compass, and see below for our case report on the CMG High Court decision on 11 August 2022.
PPF compensation Hughes v PPF Court of Appeal, 19 July 2021The PPF and the DWP appealed the High Court decision in June 2020 that the PPF age cap is invalid and as to the High Court’s decision on the PPF’s methodology. Click here for our “Hughes v Pension Protection Fund” article in September 2020 Pensions Compass. The appeal was heard on 4 and 5 May 2021 and judgment was given on 19 July 2021, click here for our Podcast on the Appeal Court judgment.
FCA authorisation FCA v Avacade Court of Appeal, 4 August 2021On 30 June 2020 the High Court decided that the two unregulated introducer companies were in breach of Regulation 19 of the Financial Services and Markets Act 2020. The appeal was heard by the Court of Appeal on 7 July 2021. In an unanimous judgment on 4 August 2021, the Appeal Court upheld the High Court’s decision – click here for the article in September 2021 Pensions Compass.
Incorrect amendments? Mitchells & Butlers Pension Plan High Court, 12 November 2021Whether an amending deed placing the power to decide the Index for pension increases in the principal employer in place of the trustees was valid. The High Court decided the parties had not intended to change the power to switch index which was originally vested in the plan trustee. The Court ordered the documents should be rectified (corrected) to restore the trustee’s power, and rejected the principal employer’s argument that as the successor principal employer, rectification could not apply to it. Click here for the article in February 2022 Pensions Compass and here for our Podcast.
Late notification for Fixed Protection 2012 Executors of Harrison v HMRC Upper Tribunal, 27 October 2021The First-Tier Tribunal dismissed the taxpayer’s appeal on 3 February 2020. The taxpayer (through his executors) appealed to the Upper Tribunal. The appeal was dismissed by the Upper Tribunal. The rules for late notification of Fixed Protection differ from the late claim rules for Primary or Enhanced Protection.
Late application for enhanced and primary protection Ketley v HMRC Upper Tier Tribunal, 1 September 2021The First-Tier Tribunal dismissed the taxpayer’s appeal and held the taxpayer had no reasonable excuse for not filing for protection and for not notifying thereafter. The taxpayer appealed to the Upper Tier Tribunal (UTT) which dismissed the taxpayer’s appeal – the 10 month delay in making a late notification was too long.
Interpreting Revaluation provisions De La Rue Pension Scheme High Court, 14 January 2022The High Court decided the employer’s interpretation of the Scheme’s revaluation rule for deferred pensions – revaluation in line with minimum statutory requirements – was the preferred interpretation. This is another reminder to ensure clarity in scheme rules.
Death Benefits Punter Southall v Benge and Barrett High Court, 1 February 2022The independent trustee concluded, having obtained supportive legal advice, that a luxurious lifestyle with the deceased member did not prevent the claimant being dependent on the deceased member for the “necessaries” of life. The High Court approved the trustee’s decision. Click here for the article in March 2022 Pensions Compass.
Bankruptcy Trustees in Bankruptcy v McNamara High Court, 15 February 2022The High Court decided in favour of the bankrupt member, an Irish citizen made bankrupt in England. The Court decided his pension rights under an Irish pension scheme were beyond the reach of his trustee in bankruptcy. Click here for the article in June 2022 Pensions Compass. Wedlake Bell acted for the pension scheme trustees.
TPR fixed penalty notices Ease & Co v TPR First-Tier Tribunal, 31 January 2022The First Tier Tribunal dismissed the company’s appeal against TPR’s fixed penalty notice for the company failing to prepare its scheme’s annual governance statement, as the company’s lack of knowledge of the statutory requirement was not a reasonable excuse.
TPR escalating penalty notice Davey West Ltd v TPR First Tier Tribunal,
10 February 2022
TPR’s Unpaid Contributions Notice lead to TPR issuing a fixed penalty notice and subsequently an escalating penalty notice, for failure to pay auto-enrolment contributions for a 6 month period. The First Tier Tribunal found that TPR’s communications had been correctly addressed, and that the company’s problems with its pensions provider were not reasonable excuses; the penalty notices were upheld. Click here for the article in February 2022 Pensions Compass (the review and appeal process) and here for the article in June 2022 Pensions Compass on recent cases in the First Tier Tribunal where the employer’s defence of reasonable excuse also failed (Kingswear Gallery v TPR and Morecombe Bay Wines v TPR).
TPR contribution notice (“CN”) Dosco Pension Scheme TPR Regulatory Report 31 March 2022In its Regulatory Report published on 31 March 2022 TPR reported on the CN issued in August 2021 against the scheme’s former Germany parent company. Besides demonstrating the reach of TPR beyond the UK, this is the first example of a CN amount including amounts in respect of lost investment returns and interest aimed at compensating the UK pension scheme for being short-changed. Click here for the article in June 2022 Pensions Compass.
Whether actuarial Valuation valid and other matters McGaughey & Davies v Trustee of Universities Superannuation Scheme (USS) High Court, May 2022Application to High Court to bring proceedings against the USS for alleged breach of duties in relation to Valuation and other matters and as to the validity of proposed benefit cuts. On 24th May 2022 the High Court refused permission for the claims to be pursued.
Debts owed by member – Creditor enforcing against personal pensions
(1) Brake v Guy High Court
11 July 2022;
(2) Lindsay v O’Loughnane High Court 14 July 2022
These two High Court cases relate to where X is legally due to pay Y – can X be forced to drawdown on his personal pension to enable X to pay Y? The Court’s broad answer was, yes. It granted Y injunctions to force X to drawdown. Tax aspects of such cases will also need considering. Our specialist Insolvency Team can assist in such cases.
Forfeiture of pension benefits
CMG Trustee v CGI Limited
High Court, 11 August 2022
The High Court decided the particular scheme rule was effective to forfeit arrears due for the period more than 6 years previously and even though the members concerned were unaware of their entitlement and ability to make a claim. The Court also explained how the legislation relating to trustees recouping overpayments out of members’ future pension works Forfeiture and Recoupment are complex areas on which legal advice is essential.
RPI/CPIH Judicial Review High Court 1 September 2022In 2021, the Ford, M&S and BT pension schemes announced judicial review proceedings relating to the Government’s various decisions in 2019/2020 to align the basis of RPI with CPIH from 2030 and without any compensation. Click here to see our article in December 2020 Pensions Compass “RPI – light at the end of the tunnel”. In its judgment on 1 September 2022, the High Court upheld the Government’s decisions. News of any appeal is awaited.

DWP Consultation on DC schemes investing in “illiquid assets”This Consultation opened on 30 March 2022 and closed on 11 May 2022. On 19 July 2022, DWP published a partial response on their proposals – further response awaited.
TPR’s June 2021 Interim Response to its January 2021 Funding Code of Practice ConsultationTPR is waiting for Government to develop its views on amendments to the Funding and Investment Regulations – see above under Parliament, Draft Funding and Strategy Amending Regulations. TPR’s Consultation is expected in Q4 2022/Q1 2023 on its proposed new Funding Code of Practice. Amending Regulations and the new TPR’s Code are not expected to come into force until Q4 2023. See above under Parliament in this Ready Reckoner.
TPR draft Single Code of PracticeOn 17 March 2021, TPR consulted on amalgamating its existing 15 individual Codes into a Single New Code. The Consultation closed on 26 May 2021. On 24 August 2021 TPR published its interim response. In light of the large number of comments received, TPR has not set a firm publication date for the new Single Code to be laid in Parliament. It is unlikely to be effective before 2023. WB comment: this is a mammoth undertaking by TPR – hopefully a useful and more navigable Single Code will result.
TPR updated Policies on its enforcement powers under Pension Schemes Act 2021In May 2022 TPR issued: a consultation on its proposed Enforcement and Prosecution Policies (Consultation closed 24th June 2022); and finalised Policies on High Fines (up to £1 million).
TPR’s views on trustees’ Climate Change obligationsIn December 2021 TPR finalised its Guidance on TPR’s approach to trustees’ compliance with the Climate Governance and Reporting Regulations which came into force on 1 October 2021. TPR’s Guidance should be read alongside the DWP’s statutory guidance published in July 2021 and Regulations and Guidance on 1 October 2022, please see above under Parliament – proposed legislation.
Conflict in Ukraine – TPR GuidanceTPR Guidance for trustees from the investment and employer covenant perspective on events in Ukraine. Click here to read our article in March 2022 Pensions Compass.
TPR blog for employers and trustees on “Refinancing risks in the current economic climate”Click here for the article in this Pensions Compass.
Regulation of Pensions Tax Advice – HMRC’s proposalsOn 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. HMRC continues to consider how best to protect consumers and to regulate tax advisers. It is expected HMRC will consult on its preferred option later this year.
HMRC Newsletter on GMP Equalisation and TaxHMRC’s Newsletter of 6 April 2022 gives some guidance on the tax treatment of Transfer Top – ups. This includes where a Top – up is paid direct to a member as a lump sum. Some modest guidance on GMP conversion is also included. Click here for the article in June 2022 Pensions Compass.
DWP further consultation on 2 specific mattersOn 28 June 2022 DWP’s Consultation (closed 19 July 2022) asked for views on 2 specific points on the proposed Dashboard Regulations: (1) definition of “Dashboards Available Point” relating to when the Secretary of state can trigger the commencement of Dashboards and (2) disclosure of information between MaPS and TPR.
DWP Response to its consultation on the Dashboard RegulationsOn 14 July 2022, DWP published its Response to its 2022 Q1 Consultation. Finalisation of the Dashboards Regulations is awaited.
TPR Update on DashboardsIn July 2022 TPR updated its Guidance on Pensions Dashboards.
Pensions Dashboard Programme19 July 2022 – Consultation on standards, specifications and technical requirements (Consultation closed 30 August 2022)
PASAApril 2022 – PASA Guidance on Pensions Values for Dashboards. August 2022 – Updated PASA Guidance on their proposed Data Matching Convention