Pensions Weekly Update – 17 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.

  • The Pensions Regulator (TPR) has undertaken an analysis of a sample of climate-related reports published in relation to scheme year-end dates between 1 October 2022 and 30 September 2023. TPR reviewed 30 out of approximately 300 reports for that period. 25 of the schemes reviewed were reporting for the first time. 13 reports were by trustees of defined benefit (DB) schemes, 13 reports were by trustees of hybrid schemes, three reports were by trustees of single employed defined contribution (DC) schemes and one report was by the trustees of a DC master trust. TPR notes that more than 60% of the reports reviewed included some form of net zero goal with a target date of 2050 or earlier. Of these, 13 were presented as a formal target set by the trustees, and six were limited to an ambition or aspiration. The findings include suggestions for improving the quality of future reports.
  • The Transition Plan Taskforce (TPT) has launched its final set of transition plan resources to help businesses unlock finance for net zero. The TPT says that there is now an internationally recognised best practice disclosure framework for transition plans, which are accompanied by a comprehensive suite of resources. Mark Hill, TPR’s climate and sustainability lead, said: “We welcome the publication of the TPT’s latest set of resources. Transition planning is a developing area. While not a legal requirement on trustees, it is likely to be integral to achieving the UK’s net zero ambitions. It is also important for the effective management of material climate-related financial risks and opportunities by the pensions industry”.
  • The Pensions Dashboards Regulations 2022 set out the value data requirements that must be met when pension schemes are providing information to dashboards. The Department for Work and Pensions (DWP) has now published guidance to help trustees and managers to meet those requirements. The guidance looks at how to prepare an annualised version of the accrued pot value for members with money purchase benefits (other than collective money purchase benefits).
  • Chris Curry of The Pensions Dashboards Programme (PDP) has issued a blog commenting on the DWP’s dashboards connection guidance, and how PDP is working with industry to help compliance efforts.
  • Litigation partner, Victoria Leigh, has issued a blog giving her top tips for identifying and addressing poor service provider performance. She encourages trustees to pay attention to the expectations of TPR, as set out in the general code of practice, around the management of service providers. Victoria says that trustees should evaluate how they measure service standards and how they set trigger points that identify poor service.

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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