Pensions Weekly Update – 10 April 2024

April 2024
Region: Europe

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 published newsletter 158. This contains more information about the abolition of the lifetime allowance (LTA) from 6 April 2024. It notes that a consolidated copy of all frequently asked questions to date will be published later this month, and that the pensions tax manual has now been updated to reflect the abolition of the LTA. The newsletter states that a second set of regulations, which will make additional technical amendments, will be made shortly, and will have retrospective effect to 6 April 2024. Accordingly, the newsletter recommends that “schemes should ensure that members are aware of the need for further legislative changes. As a result, members may need to wait until the regulations are in place before taking or transferring certain benefits. This is to ensure that their available allowances and tax position do not need to be revisited later in the year.” Trustees may wish to discuss with administrators whether any scheme members or beneficiaries will fall within the categories described in newsletter 158, and whether further information should be provided to those members concerning the possibility of deferring taking benefits. Legal advice may be required.
  • Various pieces of legislation are now in force, some of which you may have forgotten about. By way of reminder, the following measures are now effective:
  • What is Not Yet in Force?
    • We are still waiting for legislation to bring into force the provisions of the Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022. This tidied up the conversion provisions set out in the Pension Schemes Act 1993.
    • We have no recent information on if/when the Department for Work and Pensions (DWP) will finalise regulations strengthening the notifiable events regime.
    • Consultation had been expected by the end of 2023 on regulations implementing measures contained in the Pensions (Extension of Automatic Enrolment) Act 2023. This is the act that would reduce the trigger age for automatic enrolment and expand the earnings to be used in the calculation of pensionable earnings.
    • We had expected legislation in relation to superfunds/defined benefit commercial consolidators to be in place by the end of 2023.
  • Did you see our top 10 compliance tips on TPR’s general code of practice? Further resources on general code compliance can be found on our dedicated webpage.

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

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