Pensions Weekly Update – 5 August 2020

August 2020

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.

  • Trustees are reminded that 1 October is fast approaching. This is the deadline by which trustees of defined benefit schemes must publish their statement of investment principles (SIP) for the first time in a freely available format on a website. It is also the deadline by which trustees must include their policy in relation to arrangements with asset managers in their SIP. In most cases, trustees will be putting a policy in place for the first time (rather than updating an existing policy) and they should schedule time to agree this. Trustees also need to allow time to consult the employer on any changes to the SIP. Report and accounts signed off after 1 October 2020 must include the trustees' implementation statement in relation to their SIP. Trustees of schemes providing defined contribution benefits (other than additional voluntary contributions only) must ensure that the implementation report is published in a freely available format on a website as soon as the report and accounts have been completed. For further information on actions that trustees must take by 1 October please see our guide to all of the recent changes in relation to trustees' investment duties. Further guidance can also be found in a guide published by the Pensions and Lifetime Savings Association.
  • The Work and Pensions Committee is investigating the impact of the pension freedoms introduced in 2015. The inquiry will assess how much savers are protected and starts with an investigation into pension scams. The Committee’s call for evidence on pension scams closes on 9 September.
  • HMRC has issued Pension Schemes Newsletter 122. This is longer than usual and includes information on the call for evidence in relation to pensions tax administration relief, information on the consultation on tax legislation to accommodate collective money purchase pension schemes and a reminder that annual allowance pension savings statements must be issued by 6 October 2020.
  • We have issued part 3 of our #PensionsTensions series of publications, which examines the longer term impact of COVID-19. This week we focus on the employer experience and the emerging challenges around relationships, affordability, regulatory pressures and adaptability. In previous weeks we have looked at the trustee experience and the member experience.
  • Have you subscribed to our Compensation and Benefits blogs? Our most recent blog looks at the climate change measures in the pension schemes bill and considers the impact on trustees.

If you would like specific advice on any of these issues, or on anything else, please contact a member of our Pensions team.

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