Pensions: Joint DB/DC trustee agenda update: Current legal issues - March 2022
25 February 2022
Welcome to our monthly update on current legal issues for trustees of DB and hybrid pension schemes, designed to help you stay up to date with key developments between trustee meetings, and to support the legal update item on your next trustee agenda. We also have a separate DC-only briefing.
‘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).
Pensions-related measures include raising the 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
- The government has consulted on changes to the notifiable events regime: read more.
- TPR has consulted on its proposed single code of practice: watch our webinar on the proposals; read TPR’s interim response.
- Consultation on new DB funding regulations is expected in the first half of 2022. TPR has announced that its second consultation on the revised DB funding code has been pushed back to late summer 2022: read more.
- 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.
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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