a legal look at the pensions world sarah phillips and jennifer chambers wednesday 3 september 2014...
TRANSCRIPT
A legal look at the Pensions World
Sarah Phillips and Jennifer Chambers
Wednesday 3 September 2014
AberdeenEdinburghGlasgow
Topics
• tPR Funding Code of Practice
• Innovative scheme funding arrangements: what we are seeing in practice?
• Scottish Independence
• The new definition of money purchase benefits: implications and uncertainties
• Recent cases from the Pensions Ombudsman and the Courts
tPR Code of Practice – A new dawn or business as usual?
• What’s changed?
• Shift in balance – “sustainable growth of the employer”
• 9 Principles
• 15 Risk Indicators
• Implementing the Code – Integrated Risk Management
• Covenant / Investment / Contributions
Innovative Funding Structures
• Asset-backed funding (not so innovative anymore)
• Reservoir Trusts
• Charged Accounts
• Why the interest?
• What are the benefits?
• Where have they been used?
Scottish Independence
Scottish Independence – in the event of a “Yes” vote...
• The White Paper
• State Pensions
• Automatic Enrolment
• Regulatory Framework
• Cross-border schemes
• Tax
The new definition of money purchase benefits: implications and uncertainties
• Effective 24 July 2014
• Background - Bridge Trustees case
• “money purchase benefits” only those benefits which cannot develop a funding deficit
• Retrospective effect from 1 January 1997
• Key focus: hybrid schemes
New definition of money purchase benefits
• Implications– Increase in schemes to which certain legislation
applies (funding, debt, PPF)– BUT: decisions taken by trustees in good faith
between 1 January 1997 and 24 July 2014 valid except in limited circumstances
– Need to agree approach for complying with statutory framework
• Uncertainties– DC scheme with DB underpin – money purchase until
underpin “bites”
Case Round Up
• Gleeds – the pensions horror show
• Lehman – settlement reached
• Ombudsman round up – easy mistakes to make?
Sarah PhillipsPartner+44 (0)131 473 6906+44 (0)7584 631 [email protected]
Jennifer ChambersSenior Associate +44 (0)131 473 6317 +44 (0)7921 556 410 [email protected]
Get in touch
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