7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

• DWP issues consultation and consultation response
• House of Commons Library briefing papers published
• Inquiry into automatic enrolment launched
• TPR announces latest independently assured master trust

DWP issues consultation and consultation response

On 12 November 2015, the DWP issued a consultation which looks at reducing “regulatory burdens”, and “small but important” changes to various sets of regulations. It also includes the Government’s response to a consultation on possible changes to the investment regulations from early 2015.

The consultation covers the following:

• Proposed changes to regulations in relation to scheme governance and accounting. These include, amongst other things, removing the requirement for an auditor’s statement of contributions from large multi-employer schemes, allowing a deputy or acting chair to sign the annual chair’s governance statement where there is no chair in place, and making minor technical and typographical changes.
• The consultation asks for views from the pensions industry on how, generally, burdens on those running schemes can be reduced while maintaining member protection. In the Ministerial Forward, pensions minister Baroness Altmann asks responses to cover “requirements in legislation that make life needlessly difficult for you and do not benefit members… burdens you would like us to consider reducing in order to make life easier for trustees and schemes”.
• In addition, it seeks views and evidence about how better disclosure of information about schemes’ investments could be achieved and what issues, if any, will need to be addressed.

The consultation also sets out the DWP’s response to the consultation on changes to the law on investments in occupational pension schemes, which closed in April 2015.

The original consultation, published in February 2015, sought views on recommendations made by the Law Commission in their report on Fiduciary Duties of Investment Intermediaries (see our Alert for details). The recommendations had covered two main themes: the difference between financial and non-financial factors when taking decisions about investments, and the role that a “stewardship” approach can play when taking decisions about investments.

The DWP has now confirmed that no changes will be made to the Occupational Pension Schemes (Investment) Regulations 2005, having found that guidance for trustees can be more effective than regulatory change in this area.

The consultation runs until 9 December 2015.

House of Commons Library briefing papers published

The House of Commons Library has published a number of brief papers:

• an update to its briefing paper SN05091, which looks at recent measures to restrict pension tax relief (6 November 2015)
• an updated briefing paper on women and pensions, looking at the issues affecting state and private pension outcomes for women (10 November 2015)
• an updated paper on pension flexibilities (12 November 2015)
• a briefing paper on the pooling of LGPS funds, looking at the arguments surrounding this, and whether more can be done to encourage LGPS investment in infrastructure (10 November 2015).

Inquiry into automatic enrolment launched

On 8 November 2015, the Public Accounts Committee launched an inquiry into automatic enrolment and workplace pensions, which will look at the risks of registering smaller employers and how the DWP ensures that more widespread enrolment translates into higher retirement incomes.

The inquiry follows a National Audit Office report into automatic enrolment, which concluded that “significant risks remained”, despite the successful introduction of automatic enrolment to workplace pensions for large and medium-sized employers.

TPR announces latest independently assured master trust

On 12 November 2015, TPR welcomed the news that Welplan has become the latest occupational DC master trust to obtain independent assurance, joining the TPR and ICAEW voluntary assurance framework.

In addition, Welplan has been added by TPR to its list of master trust pension schemes which have been confirmed as being open to employers of all sizes and which have been independently reviewed to help to demonstrate that they are administered to a high standard.