Pensions Weekly Update – 23 August 2023 | Publications | Insights & Events

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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.

The Pensions Dashboards Programme (PDP) has issued an update on the dashboards reset. A recent assessment did not find any major issues with the central digital architecture that sits at the core of the pensions dashboards ecosystem; therefore, plans can continue towards setting new connection deadlines. PDP says that it is keen to engage with industry to get it right. Watch this space for more in the coming weeks!
The Pensions Regulator (TPR) has published its scheme funding analysis 2023. This is its annual update to funding statistics for defined benefit and hybrid schemes. The data is taken from valuations and recovery plans from schemes in deficit and from scheme returns for schemes in surplus. The analysis relates to schemes with valuation dates between 22 September 2020 and 21 September 2021. TPR says that, overall, 38.7% of schemes reported a surplus on the technical provisions (TPs) funding basis. Some of the “key figures at a glance” are set out below:

Average ratio of assets to TPs for schemes in deficit and surplus – 93.7% (median – 95.4%)
Average ratio of assets to TPs for schemes in surplus – 109.5% (median – 105.9%)
Average ratio of assets to TPs for schemes in deficit – 84.4% (median – 88%)
Average recovery plan length for schemes in deficit: 5.7 years (median – 5 years)
Median life expectancies (years) of future pensioners currently aged 45 for schemes in deficit and surplus; male – 88.7; female – 91.2

Congratulations to Monika Gagat and Henry Gard, who have joined the pensions team at the firm following qualification as solicitors!
We will be taking a break next week, returning week commencing 4 September 2023. We hope you enjoy the August bank holiday weekend, however you decide to spend it.