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Policy watch…
The government has launched a consultation on defining and implementing changes within The Pension Regulator’s (TPR) notifiable events regime. Draft regulations on 8 September showed two new notifiable events, as well as additional information and definitions, and three events which will require a notice and statement.
Royal Mail Group formally launched a consultation on the introduction of its collective defined contribution scheme on 24 August. Editor Jonathan Stapleton covered the news on the new scheme, which is expecting to open to members from next year.
TPR warned smaller defined contribution (DC) schemes to prove their value to savers, or expect to be wound up. Correspondent Holly Roach covered the regulator’s communication, which comes ahead of new regulations on value for money coming into force this month.
A joint discussion paper from TPR and the Financial Conduct Authority (FCA) on the value for money framework was published on 16 September. The consultation proposes a common framework for disclosing information on the key elements which make up “value for money”.
TPR issued an updated policy and code of practice on 29 September confirming how it will use its criminal enforcement powers. It also issued a further consultation on three draft policies relating to overlapping powers, monetary penalty powers, and information gathering powers.
Lastly, the Small Pots Co-ordination Group – tasked with solving the issue of the vast number small, deferred pension pots – confirmed on 30 September that it has enough evidence to get started on practical solutions.
What else has been going on…
September has seen more news on the risk reduction front starting with a £30m bulk annuity transaction to insure the liabilities of 300 pensions across the Britax Childcare Limited Pension Fund.
The month also saw announcements from the Fujitsu General (UK) Co. Limited Pension and Life Assurance Plan for a £7.7m full scheme buy-in with Aviva, the John Laing Pension Fund with a £320m buy-in policy, and Just with a £250m buy-in with Keysight Technologies. Selecta also confirmed it had entered a £250m buy-in with Legal & General, while L&G also announced an £8m buy-in with the Atkinson Northern Limited Retirement Benefits Scheme.
The Pension Protection Fund (PPF) announced a £105m levy estimate fall for 2022/23, with the lifeboat fund confirming 82% of schemes will see a reduction from next year.
The month also saw the industry warn of a surge in Pension Wise referrals due to “stronger nudge” guidance. Holly Roach covered the comments about the free government service on 3 September.
Companies and trustees should “strongly consider” putting in place a support framework for defined benefit (DB) members to ensure they make the right decision about potential transfers, Barnett Waddingham said as it released research on FTSE 350 schemes on 27 September.
In other news, Lane Clark & Peacock announced its intention to be operationally net zero from 2021 on 17 September. The move is part of its bid to help its clients and stakeholders build a more sustainable future.
But what of the latest on inflation hedging? Deputy editor James Phillips reported on PwC findings on 7 September which showed schemes are facing losses of up to £200bn.
The FCA announced that several LIBOR panels, which will cease to exist by year-end, will have to publish synthetic rates to ensure an orderly wind-down. It comes as the industry transitions away from LIBOR benchmarks, which are often part of liability-driven investment strategies.
Universities Superannuation Scheme (USS) members and representative bodies will be consulted on implementing employer proposals to make the scheme “valuable, affordable, inclusive, and sustainable”.
Finally, the Pensions Policy Institute launched its annual research on the DC market on 23 September. News editor Hope William-Smith covered the launch of the 2021 DC Future Book, which showed DC schemes are in a strong position despite the initial shocks of Covid.
Tech rollout…
Last month saw Penfold launch a combined workplace and personal pension app in a bid to improve employee awareness and engagement. James Phillips covered the launch of the product, which is targeted initially at the small- and medium-sized enterprise market.
Fintech financial modelling firm Gazelle MT launched a covenant assessment product tool on 14 September, aimed at simplifying monitoring for DB schemes.
Burges Salmon also launched an interactive pensions tool to support trustees and employers navigate TPR’s extended powers set out in the Pension Schemes Act 2021.
BT Pension Scheme Management partnered with digital consultancy Publicis Sapient to create and launch a benchmark in investment management for the pensions industry, announced on 30 September.
Around the industry…
Pension Awareness Day and Pension Awareness Week campaign took place in September, with PP covering a range of related research. This included Fidelity findings on the effect of Covid on savers’ retirement plans, and research from Howden Employee Benefits & Wellbeing which showed a data-driven approach to governance would “radically” improve member outcomes.
A Wealthify report, also for Pension Awareness Week, found 14 million savers are “potentially confused or overwhelmed by pensions”, while Scottish Widows used the week to warn of a plateau in savings activity, and Moneypenny found half of employees said a pension is the most important benefit a prospective employer can offer.
The Pensions and Lifetime Savings Association (PLSA) also published new guidance for Pension Awareness Week, which is aimed at employers and how they can converse effectively with staff about workplace pensions.
A group of the UK’s largest investment management consultancies came together to launch the Net Zero Investment Consultants Initiative on 20 September. The initiative will encourage its members to support the goal of global net zero greenhouse gas emissions by 2050 or sooner.
Finally, the Pensions Management Institute launched a pension trusteeship diploma, which builds on its Award in Pension Trusteeship qualification, and TPR’s trustee toolkit.
Key September voices…
Schroders economist Piya Sachdeva says investors can use wellbeing as a measure of societal performance for the social element of ESG.
Small changes can better support LGBTQ+ members, says PPF technical team associate Marc Mulligan. All in the pensions industry should feel value and respected.
With so much drawing attention, trustees need to focus on making a difference, says PTL managing director Richard Butcher.
New faces…
PLSA – John Chilman named as policy board chair
Law Debenture – Elizabeth Hartree appointed as trustee director
ITS – Rachael Collinson named as director and scheme governance expert
USS – Phil Edwards joins as head of manager selection and oversight
NHS Pensions Board – Helen Miles re-appointed as chair
Keep up to date with all the latest moves on PP’s People Moves blog here.
Until next month!
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