Policy watch…
Further requirements for schemes to disclose sustainability information were announced by the government at the start of last month as part of plans for the UK to become a world leader in green finance.
The long-awaited draft regulations for the running of collective defined contribution (CDC) schemes were also released by the government in July, with pensions and financial inclusion minister Guy Opperman confirming non-connected multi-employer CDC schemes, master trusts and decumulation only CDC schemes are also on its radar.
The Pensions Regulator (TPR) announced its intention to launch a discussion paper on defining value for money metrics to provide consistency across both contract- and trust-based schemes on 7 July.
TPR also announced on 5 July that fines of at least £2,500, but rising to £50,000, could be handed out to schemes failing to comply with Taskforce for Climate-related Financial Disclosure regulations.
The number of consultations the pensions industry faces was challenged by The Investing and Saving Alliance last month. The organisation said tight deadlines and high expectations around what are already too many consultations are making effective responding unsustainable.
What else has been going on…
June has seen more news on the risk reduction front, with the Commonwealth Bank of Australia UK Staff Benefits Scheme agreeing a circa £420m buy-in with Legal & General Assurance Society.
The Kingfisher Pension Scheme agreed its third buy-in on 22 July, Phoenix Group provided a £230m buy-in to the Afga UK Group Pension Plan on 14 July, and Legal & General (L&G) completed a record £925m assured payment policy transaction on 27 July.
A £400m buy-in was also agreed between the British American Tobacco UK Pension Fund and Pension Insurance Corporation. A similar £3.4bn deal between the two was completed in 2019.
The month also saw the Court of Appeal rule that the Pension Protection Fund can perform a single, ex ante, calculation for compensation, but the result cannot be immune from challenge.
TPR’s annual scheme funding analysis was released on 27 July. News editor Hope William-Smith reported the news that almost a third of defined benefit (DB) schemes in tranche 14 are in surplus.
In other news, the GMP Equalisation Working Group published guidance on 9 July covering GMP conversion, providing examples of approaches intended to achieve equalisation using conversion methods that have either been adopted or are actively being considered by early movers.
But what of the latest on ethical pensions campaign Make My Money Matter? Deputy editor James Phillips covered 22 July news that chief executive Tony Burdon has written to 81 of the UK’s largest occupational DB schemes calling for them to set “robust” net-zero targets ahead of COP26 in November.
Covering the latest on the Pensions Dashboards Programme, correspondent Holly Roach reported on the news that seven data providers have been selected for the initial pensions dashboard testing phase.
Hymans Robertson announced a raft of partner promotions on 14 July, adding 11 to its team as part of a centenary year expansion.
It was announced on 29 July that the Pensions Administration Standards Association (PASA) would lead the development of conventions for matching pensions dashboard users to their pensions. Holly Roach covered the news, which will see PASA work alongside the Pensions and Lifetime Savings Association and the Association of British Insurers.
Finally, Broadstone acquired PwC’s private client and treasury investment consulting team for an undisclosed sum on 2 July.
Tech rollout…
EQ (Equiniti) was announced as the pensions administration software provider for Royal Mail’s CDC pension plan on 14 July.
Spotlight on diversity…
The Financial Conduct Authority, the Prudential Regulation Authority, and the Bank of England came together last month to explore how they could improve diversity and inclusion in the financial services sector.
The regulators outlined several suggestions on 7 July, including regular reporting, linking renumeration to diversity and inclusion metrics, internal audits, and considering the approach to non-financial misconduct.
Around the industry…
Many firms began to outline their return to the office plans last month, revealing a range of different and predominantly hybrid work models. Editor Jonathan Stapleton reported on Isio’s plans to trial various flexible arrangements, Barnett Waddingham’s flexible locations approach, Hymans Robertson’s plans for a mixture of remote and office working, and Cardano’s hybrid working office redesign project.
Emma Douglas was confirmed as the next chair of the Pensions and Lifetime Savings Association (PLSA) on 7 July, while it was confirmed that Anthony Arter would stay on as pensions ombudsman after no suitable replacement was found.
Last month also saw the PLSA launch a series of awards to recognise excellence in adopting the Retirement Living Standards for member communications.
Key July voices…
PLSA director of policy and advocacy Nigel Peaple says beginning dashboards as a pensions tracing service may be the best approach.
Pragmatism is needed to make transfers safe, says PASA chair Margaret Snowdon. The focus should be on simplicity.
Simplicity will be the key in defining any value for member metrics, says AgeWage chief executive Henry Tapper.
New faces…
Lane Clark & Peacock – Norbert Fullerton appoints as partner
Smart Pension – James Lawrence joins as head of investment
Hymans Robertson – Leonard Bowman named as head of corporate DB endgame strategy
Stoneport – Margaret de Valois joins as senior consultant
PwC – Katie Lighthouse named as partner
Keep up to date with all the latest moves on PP’s People Moves blog here.
Until next month!
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