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

• Changes to the DC scheme return for 2024
• TPR speeches on master trust assessment
• Emma Reynolds confirmed as new Pensions Minister
• PASA publishes whitepaper on digital administration

Changes to the DC scheme return for 2024

TPR has announced details of the DC scheme return for 2024. Changes for this year include:

• new questions about scheme leavers – schemes will be asked for various information about members who have left the scheme over the 12 month period leading up to the date the most recent membership information was provided. This includes, for most schemes, the asset values that have left the scheme, and the number of members leaving the scheme taking decumulation benefits using a partnership agreement
• new questions about the scheme’s pensions dashboard primary contact
• updated questions about objectives for investment consultancy providers, including when the objectives were set and when they were last reviewed
• updated questions about benefits – most schemes will be asked for information about certain benefit types, including the number of members receiving each benefit and the asset value the members received.

TPR will issue scheme return notices between August and December 2024.

TPR speeches on master trust assessment

On 10 July 2024, TPR published a speech on helping master trusts “deliver real value for pension savers”. The speech sets out TPR’s “need” to have a “laser-like focus on value”, which “means three things” for master trusts:

• a focus on investments – TPR intends to challenge master trusts to make sure they have the skills and experience to consider a range of diverse assets and want to make sure that their consideration of ESG issues is “not just tick-box compliance”
• a focus on data quality and standards – TPR will start to encourage master trusts to embrace transparency through open standards, open data and common protocols to exchange data and enable flow, and
• a focus on innovative solutions at retirement – TPR wants to work in partnership with master trusts so that it can build consensus on what “good” looks like for products that support savers into and through retirement.

To make this happen, TPR intends to change its approach as a regulator. Schemes will start to see much broader engagement, including regular face to face meetings.

Following the earlier announcement of an evolution in master trust supervision, TPR has also published a speech on that topic. Master trusts are encouraged to approach TPR with “emerging propositions” on what good looks like both in terms of retirement products and services, and “guided decision-making and communications” so that savers make the best retirement choices.

Emma Reynolds confirmed as new Pensions Minister

Emma Reynolds, the MP for Wycombe, has been confirmed as the new Pensions Minister, replacing Paul Maynard who most recently held the role. Emma was appointed Parliamentary Secretary at both HMT and the DWP on 9 July 2024.

PASA publishes whitepaper on digital administration

On 8 July 2024, PASA published a whitepaper on attitudes and progress towards digital administration, following a survey carried out in 2023. The paper also looks at where the industry should go next in terms of automation and transformation of digital administration in the future.