How will the Pension Schemes Bill shape pensions that are fit for the future? How will the new funding regime impact schemes, trustees and sponsors?
Significant changes to the DB pensions world are afoot. How should sponsors respond to the new challenges? What do trustees need to do differently?
Welcome to our Pension Schemes Bill insight hub – the only place you need to look to find all you need to know about how these changes will impact you. Our technical experts will be covering this regulatory development and posting comment and insight here. See here for our News Alert which provides a technical analysis of the Pension Schemes Bill.
The rest of the hub is divided into three sections covering key issues that are important for all schemes and sponsors to consider now: Funding, Regulator Powers and DB Consolidators. Click on the images below to take you to each of these sections.
A new clearer and tougher funding regime
On 3 March 2020 the Pensions Regulator launched a major consultation into the future of the DB funding regime. This is set to be the biggest revolution to the requirements for scheme funding and investment for 15 years.
Whilst the legal basis of the new DB funding regime is not yet known, and we don’t expect that all the law will be in place until quite possibly the end of 2021, we expect the direction of travel indicated by the consultation to immediately influence ongoing and upcoming DB scheme valuations.
Implications for some pension scheme valuations are likely to include:
- higher contributions payable by sponsors
- earlier de-risking of investments
- increased interest in transfers to insurance companies and consolidators
- regulatory pressure to close some schemes to future accrual, where still open
You can read more about the possible impact for you in the blogs linked below. We envisage a number of schemes and sponsors may want to respond to the consultation that closes on 2 June.
We spent 15 minutes with TPR's David Fairs to gain all of the latest insight on what lies ahead for the DB Funding Code and how COVID-19 might impact this.
In these difficult times, some trustees and sponsors may need to consider pausing deficit contributions as part of a package of measures to help the company survive. TPR has now issued importance guidance. Steven Taylor explores more in this blog
On 3 March 2020, the Pensions Regulator published its long-awaited consultation on the principles it proposes to adopt in regulating DB pension scheme funding and investment strategies. In this blog we answer the simple question: how can you assess the financial implications of the new regime?
In this blog Steven Taylor explores the ways that sponsors of DB schemes could respond to the TPR's funding consultation.
In this blog Jill Ampleford considers what the new funding regime means for trustees of DB schemes.
Although the final detail of the new regime won’t be clear for some time, it is likely to be a significant change with the Pensions Regulator being directly involved with investment strategy directly for the first time. In this blog Dan Mikulskis considers what the new funding regime means for investment strategies.
In this blog we explore some immediate implications for assessing the covenant strength of corporate sponsors that some trustees and sponsors will need to consider following the Pensions Regulator consultation on the principles it proposes to adopt in regulating DB pension scheme funding and investment strategies.
This webinar will be packed with practical tips and best practices focusing on how you can use contingent funding options to help you meet the new funding requirements whilst making most efficient use of company resource.
23 April 2020
Come to our breakfast briefing on 26 March for an overview of the consultation and what it might mean in practice for your scheme.
26 March 2020
The return of the Pension Schemes Bill raises a number of questions for scheme sponsors. Could contingent funding bridge the gap?
New Pensions Regulator powers
Following criticism in cases like BHS and Carillion, the Pensions Regulator is set to get extensive new powers under the Pension Schemes Bill. These include powers to impose Contribution Notices on companies or directors more easily – requiring them to make one-off and substantial contributions to pension schemes. They also include powers to send anyone to jail who acts in a way to increase the likelihood that pension benefits won’t be paid. This will require new governance approaches from companies and trustees to ensure “at risk” events are identified and appropriate action is taken.
In this blog, Jonathan Camfield explores new upcoming regulator powers and the material impact this will have on corporate sponsor and trustee behaviours.
The Pension Schemes Bill will significantly increase the Pensions Regulator’s powers and further add to the obligations of companies that sponsor DB schemes and the trustees of those schemes. Directors and trustees will need to take legal and other specialist advice to ensure they don’t fall foul of the new regime, as the penalties are severe in some cases, including unlimited fines and up to 7 years in jail.
8 January 2020
A new pension consolidator regime
As it goes through Parliament, we hope the Pension Schemes Bill will be extended to include detail of the promised regime for the authorisation and supervision of DB consolidators. Could this be a solution for your scheme and improve the chance that your members’ pension benefits are paid?
Could pension scheme members be better off in a Consolidator? How can companies and trustees decide? We have developed a sophisticated model which can provide the analysis you need to make a clear and informed decision.
4 December 2019
In this blog, Jonathan Wolff discusses what moving into a consolidator means for employer covenant.
Join us on 30 June 2020 to hear the latest on the developing DB consolidation market, and how you can make the right decisions to achieve a transaction where suitable.
10 January 2020
In this blog, Sarah Lossin explores why now is the time for companies and trustees to consider DB consolidators as another tool in their armoury.