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

• PDP publishes updated standards
• TPR publishes fast track submission tests and conditions
• PPI issues briefing note on CDC schemes and their outcomes
• SPP publishes report on covenant perspectives on the new DB funding code
• New Deputy Pensions Ombudsman appointed
• TPO orders former trustee company director to repay £9.7m into schemes
• Revaluation Order 2024 published

PDP publishes updated standards

On 20 November 2024, the PDP published revised reporting standards, which set out the requirements for pension schemes and providers for generating, recording and reporting data for dashboards.

The PDP has also made minor changes to the code of connection, which comprises connection standards, security standards, technical standards, service standards and operational standards, and its data standards.  In addition, a “view data model” has been released, providing more information on the structure of a “view response”.

All standards are mandatory and subject to final approval by the Secretary of State for Work and Pensions.

Separately, the PDP has published some Q&As covering a variety of topics including user testing, the identity service and AVCs.

TPR publishes fast track submission tests and conditions

TPR published the tests and conditions a scheme must satisfy to meet the fast track parameters on 20 November 2024. The fast track submission route is part of TPR’s “twin-track approach” to assessing valuations under the new funding and investment requirements, which apply to valuations with an effective date on or after 22 September 2024. Trustees are urged to “think carefully” about whether fast track is right for their scheme, or whether a more prudent approach is appropriate, particularly where there is very limited employer covenant support.

PPI issues briefing note on CDC schemes and their outcomes

The PPI has issued a new briefing note on “Quantifying multi-employer and single employer CDC outcomes”, which is the second in a series which explores CDC schemes and how they might operate in the UK. The latest note examines the performance of single and multi‐employer CDC schemes compared to other products, to see if they offer advantages over other pension products or each other, and explores the implications of having multiple employers in the same scheme.

SPP publishes report on covenant perspectives on the new DB funding code

On 20 November 2024, the SPP published a new report on “Covenant perspectives on the DB Funding Code”, which follows on from its practical guide to the DB funding regime published in the summer. The paper is intended to shed light on the various potential risks and opportunities by “busting” some of the myths along each stage of a scheme’s funding and investment strategy journey, with a view to making life under the new DB funding regime “as smooth as possible” for all involved parties.

New Deputy Pensions Ombudsman appointed

TPO announced on 22 November 2024 that Camilla Barry has been appointed as Deputy Pensions Ombudsman (“DPO”). Camilla takes over from the current DPO, Anthony Arter, and her appointment will run for four years from 9 December 2024.

TPO orders former trustee company director to repay £9.7m into schemes

On 18 November 2024, TPO issued a press release about a recent determination in which it directed a trustee director to personally pay over £9.7 million into the pension schemes in question. The DPO found that the schemes were established with the primary intention of channelling money into specific, predetermined investments. By facilitating this arrangement, the trustee company and its director had failed to invest the schemes’ funds for a proper purpose, and the director was found to be a dishonest accessory to multiple breaches of trust.

The case highlights the importance of pension scheme members being cautious when transferring their pensions and being aware of the risks of pension scams, and directs people to the FCA’s ScamSmart webpage.

Revaluation Order 2024 published

The annual Revaluation Order was laid before Parliament on 20 November 2024 and will come into force on 1 January 2025. It sets out the revaluation required in respect of a deferred member’s benefits (in excess of GMP) for deferred members who will reach normal pension age in 2025.