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Policy watch…
The Department for Work and Pensions (DWP) confirmed enhanced powers for trustees to block or pause transfers where there is potential scam activity on 8 November. The government’s “red” and “amber” flag proposals came into force yesterday (30 November).
The government also closed the window of time during which people can join a scheme that offers a protected pension age of 55. The Finance Bill 2021/22 – published on 4 November – detailed the decision.
A consultation launched by the DWP on 30 November proposes to exempt any performance fees in the charge cap where an asset manager exceeds pre-determined performance targets.
The Investing and Saving Alliance (TISA) released a decumulation proposals paper on 9 November calling for a radical overhaul to “archaic” decumulation policies to ensure retirement outcomes for pension savers are enhanced. TISA pointed to HM Revenue & Customs, HM Treasury, the DWP, TPR, and the Financial Conduct Authority (FCA) for failing to amend out-of-touch policies.
And, after a quiet year on the development of a framework for superfunds, Clara Pensions became the first to appear on the list of assessed defined benefit (DB) superfunds from TPR. This confirmation for the DB consolidator on 30 November clears the way for the first scheme transfers.
What else has been going on…
November has seen more news on the risk reduction front with the John Townsend Trust Pension and Assurance Scheme agreeing a buy-in to buyout deal with Legal & General Assurance Society. Aviva and an unnamed US-listed medical devices business agreed a £9m full buy-in on 9 November, while 17 November saw Just Group complete a £17m pensioner buy-in with the UK scheme of an overseas banking group.
The month also saw pensions and financial inclusion minister Guy Opperman appear in front of the Work and Pensions Committee. News editor Hope William-Smith covered Opperman’s comments on the government’s long-term aims, including potential plans for “simpler statements” for DB schemes.
Royal Mail’s half year end results were published on 18 November, along with details for how its collective defined contribution scheme will work in practice. The new arrangements will have base fixed employer contributions of 13.6%.
The employer representative of the Universities Superannuation Scheme (USS) revealed the results of the University and College Union’s strike ballots on pension cuts on 5 November. Universities UK said they proved a majority of USS scheme members did not support the action.
In other news, BESTrustees president and former Plumbing Pensions trustee chair Alan Pickering will appear as a defendant in an upcoming court case for the beleaguered scheme.
A departmental review last month led by consultancy The Lang Cat revealed the Money and Pensions Service (Maps) had failed to live up to industry expectations to date.
But what of the latest on the Bauer judgement? Consultancy Lane Clark & Peacock raised concerns that scrapping it raises serious issues. Correspondent Holly Roach covered the news, looking at the DWP’s plans to remove the effects of the judgement from retained EU law.
Isio released the findings of its annual fiduciary management survey on 4 November, revealing the vast majority of retendering exercises result in the same manager being appointed, but with fee reductions.
More than three quarters (76%) of trustees would consider resigning due to the onslaught of regulatory and legislative change across the industry, the Association of Consulting Actuaries said on 22 November.
And finally, Aon promoted 13 staffers to partner across its health and wealth divisions in a mass promotion announced on 8 November.
Tech rollout…
Last month saw ITM and Altus join forces to become the industry’s first commercial pensions dashboards integrated service provider. The two will use their technical capabilities to develop an open-market connection to pensions dashboards.
HS Administration Services also announced it had entered into a joint partnership with Guiide and The Pensions Lab on 22 November to offer a range of pension tools to its clients.
Around the industry…
The month started out with some very sad news for the industry – the passing of former Association of Member Nominated Trustees co-chair David Weeks. Hope William-Smith penned an obituary on 2 November.
Maps’ annual Talk Money Week took place last month, with Professional Pensions covering a range of related research. This included findings from Lowell on savers’ biggest money-related fears, with pensions ranking in third. The Pension Protection Fund used the week to encourage DB savers to be aware of the risks their type of scheme presents and to speak confidently and openly about pensions. Quilter also said that conversations around state pension adequacy, saving, and auto-enrolment participation are vital for pension savers approaching retirement if they are to live comfortably.
The Pensions Ombudsman (TPO) came together with TPR and Maps’ MoneyHelper to launch an information fact sheet for the industry on unpaid pension contributions. TPO said it had been receiving a regular flow of enquiries from savers about employers who had failed to pay into their pension accounts.
Concern about conduct and leadership at the FCA continued throughout November, with Advance Boardroom Excellence (ABE) laying down findings from an independent review of the regulator. ABE said there is a “clear rationale” for more non-executive directors on the FCA board to increase much-needed transparency in operations.
Key November voices…
Scheme governance has been at the forefront TPR’s agenda, says KGC Associates director Lesley Carline. But trustees can keep ahead with governance.
Dalriada Trustees professional trustee Jessie Wilson says climate change is not just a tick box issue, especially after COP26.
The development of the market must go beyond cost efficiencies, says Independent Trustee Services’ (ITS) director Akash Rooprai.
New faces…
Aegon – Antonia Balaam joins as director of defined contribution clients
Federated Hermes – Olivia Lankester named as emerging markets team director
Employer Covenant Practitioners Association – Karina Brookes appointed as chair
ITS – Brian Barbour named as client director
Law Debenture – Zahrah Docrat joins as association pensions executive
Keep up to date with all the latest moves on PP’s People Moves blog here.
Until next month!
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