PPF plans lower, simpler, more flexible levies

The Pension Protection Fund (PPF) has completed and published a Long Term Funding Strategy Review, and is consulting on proposals for its 2023/24 levies. Owing to its strong financial position and a reduction in the risks it faces, it expects that the levies will be substantially lower in future, and that it creates an opportunity to revise the levy methodology, to make it simpler, place more weight on underfunding and less on insolvency risk, increase the relative importance of the scheme-based levy, and differentiate between differently sized schemes.

Court rejects challenge to RPI reform

A High Court judge has dismissed an application, by the trustees of five large pension schemes, for judicial review of the UK Statistics Authority and Chancellor of the Exchequer’s decisions about the future of the Retail Prices Index (RPI). Unless there is a successful appeal—and we understand that that avenue may now be closed—it should be assumed that, in 2030, the RPI will become a clone of the CPIH (the Consumer Prices Index including owner occupiers’ housing costs), and that no compensation will be paid to those disadvantaged by the change.

A productive month for the Pensions Regulator

Action plan to boost diversity and inclusion in trustee boards

The Pensions Regulator has produced an action plan on how it will help trustees to improve equality, diversity and inclusion (ED&I) on trustee boards. The plan says that the Regulator will provide trustees with clear expectations on diversity, and practical tools and information on how to satisfy those expectations.

The perils of a ‘head in the sand’ approach to disputes

A recent Pensions Ombudsman’s determination is a case study in why it is important to engage with his office to resolve member complaints.

Actuaries issue inflation risk-alert

The Institute and Faculty of Actuaries (IFoA) has issued a risk alert to its members to draw attention to the potential implications of the current high inflation environment to actuarial work. The alert prompts actuaries to carefully consider, and account for, the impact of current market conditions in their advice.

HMRC news: September 2022

Highlights from Pension Schemes Newsletter 143 from HIS Majesty's Revenue and Customs.