Pensions: DC Trustee agenda update: current legal issues - for March 2022 meetings

‘Stronger nudge’ requirements 

The government has confirmed that it will introduce a requirement for trustees to give members a ‘stronger nudge’ to pensions guidance. Among other things, this means that schemes will be required to offer to book a Pension Wise appointment for members over 50 who want to access flexible benefits. The regulations are expected to come into force on 1 June 2022 and The Pensions Regulator (TPR) has announced that it will publish guidance before then. Read the consultation response and draft regulations.

ACTION: Discuss with administrators how they will implement the new requirements, and consider member communications.

Restrictions on flat fees for small pots 

Regulations will come into force on 6 April 2022 restricting flat fees on small pots in default arrangements of DC auto-enrolment schemes. Read the regulations and DWP’s updated charge cap guidance.

ACTION: Discuss with administrators how they will ensure fees aren’t charged on small pots (if the relevant charge structures apply).

Finance Bill 

Pensions-related measures include raising normal minimum pension age from 2028 and changes to the mandatory scheme pays facility: read the Bill.

HMRC has published guidance on the increased minimum pension age and transitional provisions (including protection for certain members): read the guidance.

ACTION: Check your rules to see whether  members will have protection from the increased minimum pension age, and consider communications and administration changes.

Have your say

• The government is consulting on indicative draft regulations setting out requirements for pensions dashboards and occupational pension schemes working with those dashboards. The consultation closes on 13 March 2022: read more. The Financial Conduct Authority (FCA) is running a consultation on parallel proposals for personal and stakeholder pension schemes: read more.
• TPR is consulting on a new code of practice for the authorisation and supervision of collective DC schemes (CDC schemes, also labelled CMP or collective money purchase schemes). The consultation closes on 22 March 2022: read more. 

Watch this space

• TPR has consulted on its proposed single code of practice: watch our webinar on the proposals; read TPR’s interim response.
• Regulations to replace the current regime on strategic objectives for investment consultancy providers and competitive tenders for fiduciary management services are now expected in the first half of 2022.
• The government is considering solutions to the proliferation of small, deferred DC pension pots: read more.

Dates for your diary

Pensions Academy Online: week commencing 7 March 2022, 9.30-10.30 a.m. 

The programme for our next Pensions Academy Online (an update on issues for pension schemes and the people that run them) is now available: please see the list below. If you are interested in registering for one or more sessions and haven’t received our separate mailing, please let us know.

Date Topic

7 March         Money laundering and proceeds of crime – what trustees need to know

8 March Pension Schemes Act 2021: new offences and notifiable events – where are we now?

9 March Handling an investigation

10 March Legal update – including transfers, dashboards, single code, superfunds and more

11 March Climate change governance and reporting – theory and practice

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