a legal look at the pensions world sarah phillips and jennifer chambers wednesday 3 september 2014...

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 878Sarah.Phillips@burnesspaull.com

Jennifer ChambersSenior Associate +44 (0)131 473 6317 +44 (0)7921 556 410 Jennifer.Chambers@burnesspaull.com

Get in touch

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