The Chartered Institute of Payroll Professionals
News On Line
Minister for Pensions, Laura Trott, said:
“TPR authorising the first CDC scheme is a landmark moment, and this is just the beginning. We have seen the positive effect of these schemes in other countries and our plans to extend our CDC framework will enable more pensioner savers to achieve the reti rements they want.” The Pension Schemes Act 2021 introduces new duties for those involved in running pension schemes. It also gives TPR powers to protect pension scheme members and the Pension Protection Fund. The Act introduced an authorisation and supervision regime for CDC schemes. Schemes must show they meet strict criteria including that those who run the scheme meet fitness and propriety requirements, have the right systems and processes in place, can show the scheme is financially sustainable and have robust member communications. TPR has powers to intervene when necessary.
TPR has also published guidance for CDC schemes clarifying how they are assessed and then supervised.
The list of authorised CDC schemes can be accessed here. Read more on this topic here.
Back to contents
The pension industry needs 'big reform' Published: 18 April 2023 Emailed: 19 April 2023
It has been reported that the Chancellor, Jeremy Hunt, has suggested that Britain’s pension industry needs “big reform” to ensure that savers are getting good returns on their pension investments .
The Chancellor proposed that defined contribution (DC) schemes specifically will provide the “ biggest opportunities to unlock investment into high growth British industries.” The pension systems from other countries were given as an example, where the super funds have the ability to make large scale investments in a range of assets, compared to the UK’s larger number of smaller schemes. However there is potential to take on more risk with these types of schemes.
Mr Hunt said:
"And countries like Australia and Canada have found a way of making sure that they get better returns by consolidating their pension fund industry in a way that makes it easier for them to invest in unlisted and potentially higher growth vehicles and that’ s the thing I think needs to be worked on.
My concern is that pensioners and future pensioners are not getting the returns that they could expect."
The Chancellor announced in the Spring Budget 2023 that the Lifetime Allowance (LTA), rather than being increased, would be completely abolished. Currently set at £1,073,100 it will be removed from April 2023 and abolished in 2024 when the legislative framework allows.
Back to contents
TPR emphasises compliance with ESG and climate reporting duties Published: 18 April 2023 Emailed: 19 April 2023 The Pensions Regulator (TPR) is increasing its focus on environmental social governance (ESG). ESG measures how businesses integrate with environmental, social and governance practices into operations, as well as its impact and sustainability.
TPR has said:
‘‘We want trustees, and their advisers, to be aware of our expectations now. And we want them to understand why this is so important, so they’ll be motivated to meet those expectations.
TPR has launched a campaign to make sure trustees are meeting their ESG and climate change reporting duties.
cipp.org.uk
Page 233 of 314
Made with FlippingBook - Online magazine maker