Here is our brief weekly summary of key legal and regulatory developments relevant to occupational pension schemes, which you might have missed, with links for further information.
The Pensions Ombudsman (TPO) has now made a further determination in relation to a matter that was remitted back to him by the High Court in June 2019. The matter related to a delay in making a transfer payment, which resulted in the loss of opportunity to buy investments at a time when there was a dip in share prices immediately following Brexit. TPO had previously determined that there had been maladministration and the pension scheme member in question should be compensated for that maladministration. The case is unusual because the High Court went further and decided that the financial loss suffered by the member was “reasonably foreseeable” and the member should be compensated for financial loss. TPO has now ordered the scheme administrators to pay £43,700 (plus interest) in compensation to the pension scheme member. Our blog contains more detail.
The Pension Protection Fund (PPF) has issued a statement that it has requested permission to appeal part of the administrative court’s decision in the recent case of Hughes v PPF. The PPF wishes to appeal the approach to be adopted for ensuring members receive 50% of the value of their entitlement and also how survivors’ benefits should be dealt with. The court ruling as it currently stands means that the PPF would need to amend its methodology and the PPF also notes that the court’s ruling differs from the PPF’s own view of what is required under EU insolvency laws. The PPF includes in its statement the fact that the Department for Work and Pensions is appealing the decision that the compensation cap is unlawful.
It has been reported in the pensions press and also on the website of the Transparency Task Force that the court heard an application in July from the PPF and Dalriada Trustees Limited for directions as to whether the fraud compensation fund, managed by the board of the PPF, could be used to compensate victims of pension scams. We understand that a decision is expected in October.
Do not forget to join us for our webinar tomorrow (27 August 2020), which follows up on the issues raised in our recent #PensionsTensions series of publications. You can register for our webinar on our website (there is no charge). A recording will be available after the webinar if you register to attend but are unable to join us.
If you would like specific advice on any of these issues, or on anything else, please contact a member of our Pensions team.