Pensions Weekly Update – 20 March 2024

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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.

HM Revenue and Customs (HMRC) has updated its lifetime allowance guidance newsletter, which was originally published on 7 March 2024. Additional information has been added to frequently asked questions 14, 20 and 37. The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 were laid before Parliament on 14 March 2024 and will come into force on 6 April 2024. The regulations have effect for tax years 2024/25 onwards and implement consequential amendments in relation to lump sums and the overseas transfer allowance to reflect the abolition of the lifetime allowance.
The Pensions Regulator (TPR) has issued a press release, which highlights progress of its initiative to ensure that defined contribution (DC) schemes with less than £100 million in assets are complying with value for member assessments. The initiative is helping to drive consolidation, with 16% of schemes from the pilot reporting that their schemes will be wound up as they do not offer good value. Following the initial pilot, TPR will be scrutinising information from DC scheme returns, and fines may be issued for noncompliance.
The Pension Protection Fund (PPF) has published a blog noting a trend in more overfunded schemes entering a PPF assessment period. The PPF says that with the help of the PPF+ Advisory Panel, the PPF has been able to support 26 overfunded schemes to secure deals outside of the PPF in the last two years. These include the Arcadia Group Pension Scheme and the Debenhams Retirement Scheme.
Reports have recently emerged about filings that have been made at Companies House marking a charge as satisfied, without the company’s or relevant lender’s knowledge. It appears that there have been at least 800 erroneous filings. Our original alert and additional insight contain more information.
It is not too late to complete our survey to share your views with us on the government’s proposals for defined benefit pension schemes.
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