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 acknowledges impact of Virgin Media case on pension schemes
- CMI proposes “significant” changes to Mortality Projections Model
- TPO determination – Mr H (CAS-50353-Y4X5)
- Sackers News
DWP acknowledges impact of Virgin Media case on pension schemes
The DWP acknowledged the impact of the Virgin Media judgment on pension schemes in written questions tabled in Parliament on 21 February 2025. Torsten Bell, the Pensions Minister, acknowledged that the impact could lead to “uncertainty and additional costs” for affected schemes. He confirmed that “no final decisions” have been made but the DWP is “actively considering” its next steps, including whether regulations should be made to retrospectively validate any amendments held to be void in light of the case. An update will be provided “in due course”.
CMI proposes “significant” changes to Mortality Projections Model
The CMI, which provides mortality and sickness rate tables for actuaries, has proposed new structural changes to its Mortality Projections Model. There are two major proposed changes – to explicitly model the impact of the Covid-19 pandemic on mortality and to change the structure of the model to better reflect different changes in trends at young, middle and old ages. These changes, along with others, will tend to increase cohort life expectancy at older ages and reduce it at younger ages compared to the previous version of the model.
A consultation on the proposals is open until 25 March, with an update from the CMI expected in April.
TPO determination – Mr H (CAS-50353-Y4X5)
TPO has upheld a complaint against an employer and a trustee for their respective failures to provide “mirror” benefits to a member following his transfer to a new scheme, despite pre-transfer commitments to do so.
On the facts, TPO’s view was that there was an enforceable contract between Mr H and his employer to procure that he was offered membership of the new scheme on terms mirroring his previous scheme. TPO found that the employer was responsible for maladministration and a breach of law for failing to procure Mr H’s entitlement to these benefits and failing to document these benefits (and then seeking to avoid them once the error had been discovered). TPO also found that there was a breach of trust by the trustee for failing to grant Mr H the promised benefits in the new scheme.
TPO’s decision highlights that promises given to members can become contractual entitlements even if the governing documents of the scheme are never amended. If promises are given to members about benefits during a transfer process, these should be clearly documented to avoid future confusion over entitlement.
See our case summary for more details.
Sackers News
We are looking forward to seeing everyone at the PLSA Investment Conference in Edinburgh next week (11 to 13 March). Come and meet Paul Phillips, Jacqui Reid, Andy Lewis, Polly Ehrman, Samuel Taylor and Georgina Stewart at stand B2 in the exhibition hall.
