HPW’s Investment Market Review
Please find here HPW’s Investment Market Review of the first quarter of 2025.
For more information please contact Investment@hughespricewalker.co.uk
Kind regards
HPW investment
Virgin Media case: options for trustees
In July 2024, the Court of Appeal upheld a 2023 High Court ruling that could have significant implications for certain defined benefit pension schemes.
The case involved the NTL Pension Scheme trustees and Virgin Media Ltd, focusing on section 37 of the Pension Schemes Act 1993, which requires actuaries to certify any amendments to benefits in contracted-out schemes. Schemes that were contracted out of the additional state pension must ensure benefits are at least equivalent to a minimum standard, as specified in a hypothetical “reference scheme”. Any changes to these benefits must be certified by the scheme actuary to confirm compliance with this standard.
The court ruled that amendments affecting members’ section 9(2B) rights would be invalid unless the actuary had provided written confirmation at the time the changes were made. This ruling could impact schemes contracted out from April 1997 to April 2016, when contracting out ended.
The ruling has caused uncertainty in the pensions sector, especially regarding its impact on reporting by schemes and employers. A potential further legal case in 2025 may clarify some issues, such as whether entire amendments are invalid if no actuarial certification is found, or just the parts affecting section 9(2B) rights. Industry bodies are urging the Department for Work and Pensions (DWP) to introduce regulations to validate amendments that are void due to missing actuarial confirmation.
Although the ruling does not alter existing regulations, it clarifies the consequences of failing to demonstrate that actuarial certification was obtained when amendments were made. Trustees and sponsors may assume the scheme is paying the correct benefits if they believe the amendments were valid. However, any uncertainty could lead to incorrect liability valuations, potentially resulting in either an increase or reduction of the defined benefit obligation.
We have outlined below the potential options for trustees to consider at this stage, along with the associated risks.
•Wait for further developments: Trustees may choose to adopt a "wait for further developments" approach due to the uncertainty surrounding the current situation. The complexity and potential cost of conducting a full investigation into the impact of scheme amendments on liabilities, particularly when historical records are not easily accessible, may outweigh the perceived benefits. Trustees might also feel confident that the amendments and necessary confirmations were properly executed, meaning the likelihood of discovering additional liabilities is low. Furthermore, with the possibility of future regulatory changes or additional rulings that could render current investigations unnecessary, trustees may conclude that it is more prudent to wait for clearer guidance or developments before committing resources to the matter.
•Find out more: Trustees may opt for a "find out more" approach to gather additional information and better understand the potential impact of the situation. This approach allows them to stay informed without committing to a full-scale investigation. By reviewing the amendments made to the scheme, understanding the procedures followed, and identifying whether the necessary confirmations were obtained, trustees can assess the potential risks and implications. This proactive step helps trustees stay prepared for any future developments or regulatory changes, ensuring they are in a position to respond appropriately if further action becomes necessary. It also allows them to make more informed decisions while minimising unnecessary costs.
•Comprehensive review: Trustees may choose to take a comprehensive review approach if they feel the need to fully assess the impact of past amendments on the scheme’s liabilities. This approach involves a detailed examination of all relevant changes to ensure compliance with regulations and to identify any potential risks or gaps in the scheme’s governance. By conducting a thorough review, trustees can ensure that the scheme is on solid footing and avoid any future liabilities that might arise from overlooked issues. This proactive strategy may also provide greater clarity and confidence in the scheme’s overall structure, especially if there are concerns about the accuracy or validity of previous amendments.
Next steps
HPW can support trustees and employers throughout this process by offering expert guidance and comprehensive services tailored to their needs.
Whether trustees or employers are considering a "find out more" or "comprehensive review" approach, we can assist in assessing the potential impact on liabilities if there is any doubt as to the validity of any scheme amendments. Trustees may also wish to ask their legal advisers to undertake a review of scheme documentation to establish whether any deeds of amendment do not have the necessary certification.
Additionally, we can help identify any gaps in governance and offer practical solutions to address them, providing trustees or employers with the confidence to make informed decisions while mitigating any potential risks.
Government proposal on the use of surpluses
Today, the Government has published its proposal regarding the use of surpluses in defined benefit (DB) pension schemes. This proposal aims to unlock billions of pounds in funds, which could be directed towards stimulating economic growth and improving outcomes for pension savers. The proposed changes are designed to provide businesses with greater flexibility in how they manage surplus funds from DB pension schemes. This flexibility could allow businesses to reinvest these surpluses into areas such as boosting economic productivity, increasing wages or enhancing benefits for pension scheme members.
Prime Minister Keir Starmer and Chancellor Rachel Reeves are leading this proposal, which are part of a broader strategy to foster a more growth-oriented environment for businesses across the UK. The hope is that, by unlocking these surpluses, businesses will have more capital available for investment, which could, in turn, drive growth in both local and national projects. The Government sees this as a way to benefit both the economy at large and the financial security of pension scheme members.
The Pensions Regulator (tPR), has expressed support for the proposal, highlighting the potential for increased investment in UK assets and improved outcomes for pension scheme members. By freeing up surplus funds, the Government believes it can encourage investment in infrastructure, businesses and other key sectors, which would have a positive long-term impact on the economy.
As the Government moves forward with these proposals, it will be important to monitor how they are received by all stakeholders and whether they achieve the desired outcomes of stimulating economic growth while ensuring the continued security of pension scheme members.
Steps to stay scam safe
The Pension Scams Action Group has published a new checklist to help individuals protect themselves from pension scams.
These steps serve as a crucial guide for anyone who feels uncertain about their pension dealings.
Is the offer unexpected? If you're approached out of the blue with a pension offer, it’s a red flag. Scammers often create urgency to get you to act quickly without considering the risks.
Have you checked who you’re dealing with? Before proceeding, verify the credentials of anyone offering financial advice. The FCA’s Financial Services Register allows you to confirm if the individual or company is authorised to provide advice.
Stop and think – are you being rushed or pressured? Scammers often try to rush you into making decisions under pressure. Take a step back, and never let anyone pressure you into making quick choices regarding your pension.
Should you seek impartial advice? It’s always wise to seek unbiased advice from trusted sources. MoneyHelper, Pension Wise and Stop! Think Fraud offer valuable resources to guide you through the decision-making process.
By following these steps, you can safeguard your pension and make informed choices. Stay cautious and verify details before taking any action.
HPW’s Investment Market Review
Please find here HPW’s Investment Market Review of the fourth quarter of 2024.
For more information please contact Investment@hughespricewalker.co.uk
Kind regards
HPW investment
Jean Slater falls victim to a secondary scam: a warning for all
In a gripping new episode of EastEnders, Jean Slater becomes entangled in a secondary scam, shedding light on an underreported but increasingly dangerous form of financial fraud. Secondary scams are perpetrated by fake recovery companies that target victims of an initial scam, promising to help recover lost funds, only to defraud them further.
While primary scams often involve schemes that lure people into risky or fake investments, secondary scams exploit the desperation of victims who have already been deceived. These scams can be even more devastating, as they prey on trust and amplify the financial and emotional toll.
To combat such dangers, The Pension Scams Action Group has created a helpful resource: the “Steps to stay scam safe” checklist. This leaflet provides practical advice to help you identify and avoid pension-related scams. Key tips include verifying the credentials of anyone who contacts you, being wary of unsolicited offers and never feeling pressured into making quick decisions about your pension.
For more information, access the checklist here.
The EastEnders storyline serves as a powerful reminder to remain vigilant.
Lessons from the TPO Determination
Introduction
The Pensions Ombudsman’s (TPO) recent determination in the case of Ecroignard Trustees Limited (ETL) and former director Ankur Vijaykumar Shroff highlights critical failings in pension fund management. This case, which involved the Genwick Retirement Benefit Scheme and the Uniway Systems Retirement Benefits Scheme, underscores the devastating consequences of poor governance, conflicts of interest and risky investment practices. Ecroignard Trustees were found to have breached their duties by investing members’ funds in high-risk, unregulated, illiquid investments/assets that were inappropriate and did not comply with the regulations governing pension scheme investments, ultimately leading to significant financial loss for scheme members.
This determination serves as a cautionary tale for trustees and firms managing pension schemes. It underscores the importance of robust governance, ethical investment practices and compliance with regulatory standards to protect members’ funds.
Lessons learned from the case
The TPO ruling brings several critical lessons to light. We have summarised our top three below:
Governance failures: Trustees failed to manage conflicts of interest and did not exercise due diligence in selecting appropriate investments.
Investment risks: High-risk, illiquid investments, coupled with a lack of transparency, led to member losses.
Neglect of member interests: Decisions prioritised external parties over members’ financial security.
These failures emphasise the need for trustees and fund managers to adopt a disciplined and transparent investment approach, prioritising member interests above all else.
Our firm’s robust investment approach
At HPW, we adhere to the highest standards of governance, investment diligence and ethical practice to safeguard pension scheme members’ interests. Here’s how we ensure success and compliance:
Governance and internal controls
Rigorous oversight: We employ robust internal controls, regular audits and a clear separation of duties to eliminate conflicts of interest.
Accountability: Our decision-making process is transparent, ensuring trustees are fully informed and empowered to act in members' best interests.
Diversified investment strategy
Balanced risk and return: We adopt a diversified approach, spreading investments across asset classes to minimise risk.
Focus on stability: Unlike the schemes in the TPO determination, we avoid speculative investments and prioritise long-term stability and meeting members’ objectives.
We assess the risks of schemes and mitigate or remove them as much as possible in the investment strategies.
For a given level of risk, we try to achieve the best expected level of return while considering environmental, social and governance issues.
Transparency and member interests
Clear communication: Members are kept informed about investment strategies, risks, and returns through regular updates. Regular updates are shared with our clients, including a detailed quarterly market review that features a macroeconomic analysis, a comprehensive market overview and key investment insights.
Member-centric decisions: Every investment decision is made with the members’ financial security as the top priority.
Compliance and ethical standards
Regulatory adherence: Our practices align with the Pensions Regulator’s Codes of Practice and the Data Protection Act 2018.
Ethical investment: We conduct thorough due diligence to ensure every investment meets stringent ethical standards.
Red flags and advice for trustees
To avoid the pitfalls highlighted by the TPO case, trustees should remain vigilant. Here are some key steps:
Conduct due diligence: Always assess the risks, governance, and transparency of proposed investments.
Seek expert advice: Consult regulated advisors with a proven track record.
Diversify portfolios: Avoid over-reliance on single or high-risk investments.
Beware of unclear structures: Steer clear of overly complex or offshore arrangements without clear accountability.
The importance of codes of practice
Codes of practice provide a framework for trustees to manage pension schemes responsibly. By integrating these into our governance framework, we ensure compliance and build trust. For example, HPW regularly reviews its practices against these codes to stay ahead of regulatory changes and best practices.
Conclusion
The TPO determination serves as a stark reminder of the responsibilities trustees bear in safeguarding members’ funds. At HPW, we are committed to ethical investment practices that prioritise members’ long-term financial security while adhering to the highest regulatory and ethical standards.
If you are seeking a trusted partner for pension scheme management, contact us to learn more about our approach to robust and ethical fund stewardship.
TPR updated covenant guidance for Trustees of DB schemes
The Pensions Regulator (TPR) has released revised guidance on employer covenant assessments for trustees of defined benefit (DB) pension schemes, in line with the new DB funding code.
This updated guidance provides clarity on TPR's expectations for evaluating the employer covenant, aiming to standardise practices across schemes while promoting best practices. It introduces several key elements, such as assessing cash flow, affordability, maximum affordable contributions, covenant longevity and contingent assets.
TPR’s Executive Director of Market Oversight, Neil Bull, said:
“Today’s publication is the last piece of the jigsaw to help schemes carry out valuations under the new DB funding code. For the first time, employer covenant is defined in regulation.”
Trustees are encouraged to consider proportionality when assessing their covenant, taking into account the specifics of each scheme, including its funding situation and recent changes. The guidance includes practical examples and emphasises areas that require careful trustee judgment, particularly around contingent assets and ensuring the employer's ability to provide support when needed.
Trustees are expected to regularly review their covenant assessments to ensure they remain relevant and proportionate, particularly in light of any shifts in the scheme's funding position.
The guidance is organised into the following nine sections:
Introduction
Identifying employers
Assessing cash flow
Prospects
Determining the reliability period and covenant longevity period
Contingent assets
Recovery plans
Determining the covenant inputs required to assess supportable risk
Monitoring
PASA releases new guidance on data scoring
The Pensions Administration Standards Association (PASA) has issued new guidance to help trustees and providers improve the quality of pension scheme data through targeted testing and scoring.
Kristy Cotton, Chair of the PASA Data Working Group, emphasised the importance of annual, scheme-specific data testing to accurately reflect data quality, address risks and focus on resolving genuine issues. Low data scores, while not ideal, offer an honest assessment and opportunities for improvement. Effective data scoring enhances efficiency, automation and the member experience.
Key takeaways from the guidance include:
Conducting relevant and targeted data testing to reflect true data quality
Building consistency across the industry to enable data comparison and better data quality understanding
Ensuring trustees can evidence data quality improvements and maintain transparency with rectification plans
Avoiding delays in data testing, even during ongoing rectification projects, to uphold accountability
Fiona Frobisher from The Pensions Regulator welcomed the guidance and encouraged schemes to adopt these good practices to meet minimum standards.
The full PASA Guidance is available online.
New EastEnders storyline highlights the devastating impact of pension scams
It would be reassuring if the recent EastEnders storyline about a pension scam were just a fictional plotline but unfortunately, scams like this happen in real life every day. Did you know that in 2023 there were 559 reports of pension fraud in total and £17,750,635 lost with an average loss of £46,959 per person? And have you considered how easily your hard-earned savings could be at risk?
In the latest gripping drama on BBC’s EastEnders, popular character Jean Slater, aged 61, becomes the target of a cruel pension scam. Persuaded to transfer her pension into a high-return investment after participating in a “free pension review” Jean is eventually scammed and she now faces the heart-wrenching consequences of losing her savings.
This storyline has caught the attention of The Pensions Regulator (TPR), who, alongside other organisations, collaborated with the EastEnders writers to bring awareness to the real-world dangers of pension fraud. The partnership aims to educate viewers about the manipulative tactics that fraudsters use to exploit the vulnerable.
How members can protect themselves and their savings
Here are some crucial steps that pension scheme members can use to protect themselves from pension scams:
Stop and think: If you receive an unexpected call, email or text about your pension, don’t rush into a decision. Reject the offer and take time to consider your options.
Check the source: Always verify who you are dealing with by checking the FCA’s register of authorised firms and advisers.
Look for red flags: Be cautious of offers of “guaranteed high returns” or “free pension reviews” that seem too good to be true.
Report suspicious activity: If you suspect you’ve been targeted by a scam, report it immediately to Action Fraud online or by calling 0300 123 2040. In Scotland, report to Police by calling 101.
What can you do?
As a viewer of EastEnders or a member of the public, you have a vital role to play in protecting yourself and others from pension scams. Take the time to stay informed, report suspicious activity and encourage your friends and family to do the same. The more proactive we all are in spotting and reporting pension fraud, the safer we will be in securing our financial futures.
New DB funding code in force today
The Pensions Regulator’s (TPR) new funding code for defined benefit (DB) schemes, which provides guidance and sets expectations for meeting funding and investment strategy (FIS) requirements, takes effect today.
This code applies to DB schemes with actuarial valuations from 22 September 2024 onward.
Neil Bull, TPR's Executive Director of Market Oversight, emphasised that the code aims to align trustees with appropriate long-term objectives for their schemes, ensuring clarity and enhanced regulatory oversight to secure members' benefits. Minister for Pensions, Emma Reynolds, highlighted the significance of DB pensions for the retirement of millions, noting the code's role in setting higher standards while maintaining flexibility to protect members' entitlements.
The related DB regulations were introduced in April 2024 and similarly apply to valuations from late September. TPR plans to provide further support for implementing the code, including a webinar in December and additional covenant guidance later this year.
Additionally, TPR is developing a digital service to streamline the submission of funding and strategy documents, set to be available in spring 2025, with pilot testing already underway. Key elements of the code encourage sound long-term planning, risk management and guidance on funding and recovery plans based on sponsor capacity.
TPR’s core objectives include protecting members’ benefits, reducing reliance on the Pension Protection Fund, promoting strong pension administration, enforcing compliance and supporting employers' sustainable growth.
The Autumn budget 2024
The Chancellor delivered the Autumn Budget on 30 October 2024. We set out below the key issues relating to pensions.
Tax on pension death benefits
From 6 April 2027, most death benefits from registered pension plans will be part of the deceased member’s estate for inheritance tax purposes. This includes lump sums, which are currently not included as they are given to beneficiaries chosen by the trustees. The main exception will be pensions paid to dependants, for example a spouse or child. Pension schemes will be responsible for reporting and paying any inheritance tax owed. This plan is being reviewed, with a consultation open until 22 January 2025.
National Insurance contributions
From 6 April 2025, the rate of employer National Insurance will increase from 13.8% to 15%. In addition, employers will need to pay National Insurance on annual earnings over £5,000 (previously £9,100). There is no extension to include employer pension contributions.
Scheme administrators’ residency
From 6 April 2026, administrators of registered pension schemes (for tax purposes) will be required to be residents of the UK. In most cases, the scheme administrator for these purposes is the trustee board.
Overseas pension transfers
Transfers to recognised overseas pension schemes in the European Economic Area or Gibraltar will no longer be excluded from the overseas transfer charge.
Mineworkers Pension Scheme
The investment reserve fund of the Mineworkers Pension scheme will be given to the Scheme’s trustees to provide additional pension benefits to its members. This will give a boost of 32% to the annual pensions of 112,000 former mineworkers. The fund, now worth £1.5 billion, was due to be returned to the government in 2029.
If you would like to discuss this, please get in touch with your usual HPW contact or contact us.
PASA Launches New ‘Dashboards Toolkit’
Today PASA has published the first content in its new 'Dashboards Toolkit,' designed to help trustees and administrators connect AVCs to pensions dashboards.
The initial toolkit includes:
A questionnaire for trustees to issue to their AVC providers in advance of connecting their scheme AVCs to dashboards
A checklist and suggested list of activities for administrators to connect to and maintain AVC data
A list of AVC providers and their connection methods
The new PASA Dashboards Toolkit, can be found here.
HPW’s Investment Market Review
Please find here HPW’s Investment Market Review of the third quarter of 2024.
For more information please contact Investment@hughespricewalker.co.uk
Kind regards
HPW investment
Driving excellence in pension administration: TPR's initiative and HPW's commitment to quality
The Pensions Regulator (TPR) recently announced that it will be expanding its engagement with administrators to help drive better saver outcomes. See here for details.
TPR will be focusing on seeking input from a selection of the largest administrators who cover the highest number of memberships to maximise its reach.
Last year, TPR launched a pilot initiative aimed at addressing risks related to data management and trustee engagement, which yielded positive results and led to actionable improvements. Moving forward, TPR plans to collaborate with 10 to 15 key administrators to foster a more secure and innovative market. This expanded effort will concentrate on four key areas: financial sustainability, risk and change management, cyber resilience and technological innovation.
HPW supports this drive to improve member experiences. We are an independent provider with no outside shareholders, committed to ensuring smaller schemes can access administration services of a high standard. In this article we explain how we do this.
Our approach to pension scheme administration
A dedicated, experienced team
At HPW, we pride ourselves on having a highly experienced team of pension administrators. Our people come to us with strong industry experience and thrive in the ever-evolving world of pensions. We foster a collaborative environment, working together as a close-knit team to support each other. We also encourage professional growth, with most of our team being members of the PMI (Pensions Management Institute) thanks to our support in their exam progression.
Personalised service
We specialise in working with small to medium sized schemes, which allows us to build close relationships with both members and trustees. Every scheme is assigned a dedicated point of contact with a direct phone number and email, ensuring quick, personal responses when needed. For routine requests, we aim for a 5- to 10-day turnaround, but for urgent matters, like handling the pension of a deceased member, we reach out within 24 hours to offer guidance and support during a difficult time. We are always committed to keeping members informed and updated on the progress of their requests.
We have more stringent service standards than most. We aim to achieve at least 95% of all tasks within the timescales.
Our performance against these standards is shown below.
As an indicator of the robustness and reliance of our administration infrastructure, when the COVID-19 pandemic hit the UK, our March 2020 achievement against targets was 97%.
Clear, accessible communication
Clarity is at the heart of everything we do. Our goal is to make pension information as easy to understand as possible and we encourage members to reach out if they need anything explained. Whether it's retirement options or specific documentation requests, we're here to help every step of the way.
The table below highlights feedback from our clients gathered in our most recent administration survey. We value feedback and continuously look for ways to improve our communications based on member input.
Administration surveys
All communications were easy to understand and all points were explained well.
HPW communicated with us at the right time and often enough.
Any enquiries were dealt with promptly.
The responses to any enquiries were provided to a high standard.
If asked, I would recommend HPW's administration services to other trustees.
Valuable client feedback
Our commitment to personalised service doesn't go unnoticed. Here’s what some of our members have said:
• “My face-to-face meeting was extremely helpful; I’ve received excellent service!”
• “The process was easy, with prompt action and payment.”
• “Communications were handled professionally throughout.”
• “All communications I had with HPW were outstanding”
• “Can’t fault the process 10/10”
• “The process was very easy, efficient and professional, all as I expected from HPW”
Maintaining high-quality data
Good data is the backbone of effective scheme management. When we take on a new scheme, we conduct a thorough health check of all received documentation and data, reporting our findings to the trustees. We also run regular checks and tracing exercises to ensure member data is as accurate as possible, ensuring smooth administration and informed decision-making for trustees.
Proven systems and strong security
HPW is proud to hold ISO 9001 accreditation, which reflects our high standards in processes and quality control. We are continually improving, using both internal and external feedback to enhance how we work. Protecting our clients from fraud is a top priority, and we’ve committed to The Pledge to Combat Scams, aligning with our rigorous fraud prevention measures.
Additionally, all staff undergo Cyber Essentials training, ensuring robust data protection and GDPR compliance. Our systems are secured with multi-factor authentication, firewalls, and anti-virus protection to safeguard member information. As we continue to innovate, we are working towards Pension Dashboard connectivity and are excited to launch our member portal in the near future.
Please contact us if you have any questions or you want to know more about our services.
Preparing for Pensions Dashboards: Key Actions for Trustees and Scheme Managers
As automatic enrolment brings more people into pension saving, the need for savers to access a comprehensive view of their retirement pots becomes increasingly important. To support this vision, pension schemes must be ready to meet their obligations regarding pensions dashboards.
Yesterday, in an interesting article called “Act now on pensions dashboards so we don’t have to” The Pensions Regulator outlined clear expectations for trustees and scheme managers on compliance, emphasising the importance of accurate data and timely preparation. As highlighted in the article, by taking the necessary steps now, schemes can avoid regulatory enforcement and help savers secure their financial future.
Here are some key actions for trustees and scheme managers:
Read the guidance: Understand and comply with both The Pensions Regulator (TPR) and Department for Work and Pensions (DWP) guidelines.
Plan connection: Ensure timely and orderly connection to pensions dashboards, reducing risks of non-compliance and reputational damage.
Manage resources: Implement robust controls and contractual agreements with service providers.
Improve data quality: Continuously review, improve, and maintain accurate member data.
Manage risk: Identify, evaluate, and mitigate risks through effective governance and controls.
Maintain records: Keep clear records of decisions, advice, and data-related actions.
Report breaches: Promptly report and address any breaches to prevent regulatory enforcement.
Monitor progress: Work closely with third parties to ensure compliance and meet dashboard deadlines.
If you have any questions or need assistance with implementing these actions, please feel free to contact us for support.
HPW
DB Funding Code of Practice laid in Parliament
The Pensions Regulator’s ("the Regulator's") new Code of Practice on Funding Defined Benefits ("the Code") was finally laid before Parliament on 29 July 2024. Trustees and scheme sponsors now have sufficient clarity on the Regulator’s guidance and expectations for valuations with effective dates on or after 22 September 2024 to allow valuation planning to commence.
The new Code reflects changes made to the final version of the funding and investment strategy regulations that came into force on 6 April 2024. The Regulator has highlighted greater flexibility in the final Code, including:
Clarifying that trustees retain flexibility to set scheme-specific investment strategies;
Allowing trustees more flexibility over how to test the high resilience of their low dependency investment allocation;
Greater clarity on how to assess covenant reliability and longevity; and
Allowing trustees to recognise in their statement of strategy any scheme plans to remain an open scheme.
There are also a number of changes to some of the relevant definitions and key parameters. “Smaller schemes”, for which some limited easements apply to the detailed requirements, are now defined as schemes with 200 members or fewer, excluding certain members such as those with DC benefits only or fully insured annuities. In addition, the key definition of “significant maturity” has been reduced from 12 to 10 years (8 years for cash balance schemes).
The new Code will come into force formally during the autumn, once it has been before Parliament for 40 days. Further details are due from the Regulator in the coming months including the filters it will use when assessing valuations. Other publications still to come include a consultation on updated covenant guidance and its final statement of strategy to be accompanied by its response to its March 2024 consultation.
Virgin Media Limited v. NTL Pension Trustees II Limited
The recent decision from the Court of Appeal upheld that amendments to a contracted-out pension scheme's rules that affect contracted-out rights (technically known as Section 9(2B) rights) are void if made without the required actuarial confirmation as mandated by Section 37 of the Pension Schemes Act 1993 and Regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations 1996.
This ruling impacts historical amendments made between 1997 and 2016, potentially increasing scheme liabilities if such amendments are found to be void due to missing actuarial confirmation.
Trustees and Employers may wish to review past amendments from 1997 to 2016 to ensure they comply with the requirement for actuarial confirmation. This involves checking if the necessary confirmation was obtained and documented at the time of the amendment. If there is doubt about whether the confirmation was obtained, Trustees may need to search through historical records, including emails and other correspondence, for evidence.
Trustees and employers should stay informed about any developments and be prepared to adjust their actions based on the final legal outcome. Note that it is possible that the DWP will intervene to bring in legislation to permit retrospective actuarial confirmations.
HPW’s Investment Market Review
Please find here HPW’s Investment Market Review of the second quarter of 2024.
For more information please contact Investment@hughespricewalker.co.uk
Kind regards
HPW investment
International Pride Day
Today, we proudly celebrate International Pride Day!
At HPW, we stand with the LGBTQ+ community, honouring diversity and inclusion.
To our LGBTQ+ colleagues, clients and allies: We see you, support you, and celebrate you.
Happy International Pride Day!
#PrideDay #LoveIsLove #LGBTQ #Inclusion #Diversity #Pride2024