Failing to comply with the duties may result in a penalty of up to £5,000 for an individual and £50,000 in any other case.
The Pension Schemes Act 2017 also introduces measures for authorising and supervising master trusts and new powers for The Pensions Regulator. Authorisation will start after regulations have been developed.
The Pensions Regulator expects those involved with running master trusts to understand how the 2017 Act affects their scheme now, and to start making preparations for the future.
A list of triggering events and who must report them can be found on The Pension Regulator's website.
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British Airways loses High Court battle over discretionary increase 23 May 2017
British Airways (BA) has lost a landmark trial to block its pension trustees' decision to award a discretionary increase in 2013.
Professional Pensions reports on the seven week battle towards the end of 2016, where the trustees of the Airways Pension Scheme (APS) were taken to the High Court to defend a 0.2% discretionary increase - above the rate of the Consumer Prices Index (CPI) - to members in the 2013/14 year. The decision had been made after the scheme was moved from the Retail Prices Index (RPI) in 2011 - as it was linked to the Treasury's Pension Increase Review Orders - and a recovery plan had also been agreed based on RPI in 2010, and then again in 2013. BA alleged the APS trustees did not have the power to award an increase, especially while the scheme was in deficit, had ignored advice and put pressure on advisers to change recommendations, and given "gratuitous" and "unearned" benefits. However, in his 164-page judgement, (published 19 May), Justice Morgan said the APS trustees had not made a "benevolent or compassionate payment", had not committed an abuse of power, and had regard "to all relevant considerations and to no irrelevant considerations". The judge ruled on both the trustees' decision to amend the scheme rules - using clause 18 which allowed rules to be amended "in any way" unilaterally - to grant themselves a unilateral power to award discretionary increases in 2011, and the eventual decision to give out a 0.2% increase in 2013. The judge agreed the deficit and BA's positions were factors that needed to be taken into account during a decision- making process, but said trustees had adequately considered these. He disagreed with BA that both actions had been conducted improperly or were not allowed, thereby allowing the 0.2% increase to go ahead.
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Low earners suffer wage suppression as companies plug pensions deficits 31 May 2017
Employer contributions to defined benefit (DB) pension schemes deficit payments are leading to a reduction in hourly wages, a study has found.
According to a report by Pinsent Masons a study has identified a sharp increase since 2000 in the share of 'non-wage' elements in employee compensation, including payments into pension schemes. Last year non-wage elements accounted for just under 17% of average pay, up from 13% in 2000. The biggest driver of this increase, accounting for £26bn of the overall £37bn increase in 2016, was employer pension contributions. The report said increased deficit funding contributions accounted for around £19bn of this rise in non- wage employer contributions.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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