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

EMIR refit regulation
Pensions schemes newsletter 110
Annual funding statement analysis 2019
Chris Curry appointed Principal of the Pensions Dashboard Industry Delivery Group
PSV v Bauer (AG opinion – 8 May 2019)
Mrs D (PO-20255) (Distribution of death benefits)

EMIR refit regulation

On 28 May 2019, the European Union Regulation amending EMIR was formally published. It becomes law on 17 June 2019. This Regulation extends pension schemes’ temporary exemption from the clearing obligation for a further two years. After that period, the exemption can be extended twice, by a further year, if reports that the European Commission must prepare “… conclude that no viable technical solution has been developed and that the adverse effect of centrally clearing derivative contracts on the retirement benefits of future pensioners remains unchanged”.

The regulation also retrospectively validates the informal exemption that has applied since 17 August 2018 (when the previous statutory exemption expired).

Pensions schemes newsletter 110

On 29 May 2019, HMRC published pension schemes newsletter 110. It has articles on:

relief at source
HMT’s consultation on the transposition of the Fifth Money Laundering Directive
Managing Pension Schemes service – user research.

Annual funding statement analysis 2019

TPR has published a review of DB pension schemes with valuation dates between September 2018 and September 2019 (known as Tranche 14 or T14).

This analysis is intended to give further context to TPR’s 2019 Annual Funding Statement (see our Alert) and is aimed at a more technical audience.

Chris Curry appointed Principal of the Pensions Dashboard Industry Delivery Group

On 3 June 2019, the PPI announced that its Director, Chris Curry, is to reduce his time commitment to three days a week, in order to take up the role as Principal of the Pensions Dashboard Industry Delivery Group with the Money and Pensions Service, starting on 8 July 2019.

PSV v Bauer (AG opinion – 8 May 2019)

This reference from the German Federal Labour Court will require the CJEU, once again, to consider the scope and interpretation of Article 8 of Directive 2008/94/EC (protection of employees’ pension rights in the event of the insolvency of their employer).

In his Opinion, the Advocate General (“the AG”) calls into question the current interpretation of Article 8 (that it requires Member States to guarantee each individual employee compensation corresponding to at least 50% of the value of their accrued entitlement under their occupational pension scheme, see Hampshire v the PPF). His view is that, in certain circumstances, “Article 8 imposes an obligation on Member States to protect all of the old-age benefits affected by an employer’s insolvency and not just part or a designated percentage of these benefits”.

For further detail please see our case report.

Mrs D (PO-20255) (Distribution of death benefits)

Upholding Mrs D’s complaint, TPO found that a provider had made insufficient enquiries of the potential beneficiaries for a death benefit and directed it to make a fresh decision.