CDC Code of Practice finalised

The Pensions Regulator has laid the Code of Practice on the authorisation and supervision of collective defined contribution (CDC) schemes before Parliament. The new code is expected to come into force before the end of July 2022 in time for trustees to apply for authorisation of a CDC from 1 August 2022.

Trustees to assess fit with 1.5⁰C increase goal

The Department for Work and Pensions (DWP) is proceeding with plans to make the trustees of some (mostly larger) pension schemes report on the conformity of their investments with the Paris Agreement climate goal. It has published draft Amendment Regulations, stewardship guidance covering both trustees’ statutory obligations and best practice, and an update to its existing statutory guidance on climate-risk governance and reporting. The changes will apply for scheme years ending on or after 1 October 2022.

DWP seeks views on supporting members’ retirement decisions

The Department for Work and Pensions (DWP) has called for evidence on the types of support that members of trustbased defined contribution (DC) schemes need when accessing their pensions, and the options that are, or may in future, be available to them.

GMP equalisation: checklist for historical transfers

The Pensions Administration Standards Association (PASA) has published a checklist on the administration implications of past transfers out on guaranteed minimum pension (GMP) equalisation. It contains a list of questions for trustees to consider when equalising transfers made in the past for the effects of GMPs. For each issue covered, the PASA gives a list of trustee decisions required and the implications for administration. The PASA hopes that the checklist will be used to ‘inform discussion, capture decisions made and provide an audit trail.’

Refreshed Actuarial Standard highlights significance of less-traditional risks

The Financial Reporting Council (FRC) has published proposed changes to Technical Actuarial Standard (TAS) 100: Principles for Technical Actuarial Work. They would bring clarity to the existing principles and ensure that the TAS is relevant to new practices and risks.

Pensions dashboards: further consultation

The Department for Work and Pensions (DWP) is running a follow-up to its January 2022 consultation exercise on pensions dashboards, seeking comments on two additional issues: the point at which dashboards service should be made available to the general public, and the rules about information sharing between Money and Pensions Service (MaPS) and the Pensions Regulator. It proposes that the industry be given at least 90 days’ notice of the ‘Dashboards Available Point’ (DAP), being the date from which the DWP (having consulted the MaPS, the Regulator, and the Financial Conduct Authority) considers that the dashboards system will be ready for open usage.

DC scheme returns: a game of two halves

The trustees of defined contribution (DC) schemes who will need to complete the Pensions Regulator’s scheme return for this year will receive notices in the period from July to December 2022. Those required to conduct enhanced ‘value for members’ (VfM) assessments or to publish documents (Chair's statement information, statements of investment principles and the associated implementation statements, and climate-change governance reports) online will be expected to provide their returns in two parts.

HMRC Newsletters, June 2022

HMRC's Pension Schemes Newsletter 140 and HMRC’s new(ish) online Managing Pensions Schemes service