Pensions Weekly Update – 16 November 2022

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Here is our weekly summary of key legal and regulatory developments relevant to occupational pension schemes that you might have missed, with links for further information.

We await tomorrow’s autumn budget statement with interest. Chancellor Jeremy Hunt has already paved the way by saying, “We are all going to be paying a bit more tax”. Although we anticipate another wave of austerity, we hope for stability in the pensions tax relief system.
How much has changed in the last 10 years? In our social media post, we revisit our 2012 “Pensions in the Age of Austerity” White Paper, in which we made 10 recommendations (including the need for stability in the pensions tax relief system). How would you mark the government against this scorecard?
Make My Money Matter (MMMM) has published its first climate action report. Co-founder Richard Curtis says in the report, "There is no point inheriting a pension in a world on fire". MMMM surveyed the 20 largest workplace providers of defined contribution pensions, and the report collates their responses. The research found that a majority of providers have begun to reduce their overall financed emissions, while a similar number have outlined plans to increase investments in climate solutions. However, more work needs to be done to meet the measures targeted by MMMM. The report contains five key recommendations, which MMMM asks the pensions industry and regulators to take on board in order to drive meaningful climate action.
The UK Transition Plan Taskforce (TPT) was announced at COP26 by the then-chancellor to develop the gold standard for private sector climate transition plans. There was a call for evidence that closed in July of this year, and the TPT has now published for consultation its draft disclosure framework and draft implementation guidance, along with voluntary testing. The disclosure framework makes recommendations for companies and financial institutions (including pension funds) to develop gold-standard transition plans, while the implementation guidance sets out the steps to develop a transition plan and how to disclose that plan. Consultation closes on 28 February 2023.
Pensions partner Chris Harper will be joining Ed Francis and Cyprian Njamma from Goldman Sachs Asset Management's Multi-Asset Fund Solutions team to consider transitioning to a low-carbon global economy and what this means for the investment required and the role of institutional investors and fiduciary managers. Register for this event, which will be held at the offices of Goldman Sachs on 23 November 2022 from noon to 2 p.m. GMT.

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