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
- Further details of Government’s pensions review published
- SPP issues practical guide to the new DB funding regime
Further details of Government’s pensions review published
On 16 August 2024, the Government published terms of reference for phase one of its pensions review to “boost investment, increase saver returns and tackle waste in the pensions system”. The first phase of the review will focus on developing policy in four areas:
- “driving scale and consolidation” of DC workplace schemes
- “tackling fragmentation and inefficiency” in the LGPS through consolidation and improved governance
- the “structure of the pensions ecosystem” and “achieving a greater focus on value” rather than cost, and
- “encouraging further pension investment into UK assets to boost growth across the country”.
The terms set out various factors that the review will have regard to, including implications for wider financial stability policy objectives (such as with respect to the gilt market), and the progress already made on in-train policy initiatives such as the VFM framework.
Initial findings are expected to be reported later this year ahead of the introduction of the Pension Schemes Bill. The second phase, also planned for later this year, is expected to include assessing retirement adequacy as part of considering further steps to improve pension outcomes. Ongoing policy development relating to DB schemes “will remain separate from the review”.
SPP issues practical guide to the new DB funding regime
On 15 August 2024, the SPP published a practical guide for trustees and other pensions professionals to the new DB funding regime set to come into force from 22 September 2024. The guide is intended to help clarify the requirement for DB schemes to have a funding and investment strategy and how schemes should adjust their strategies under the new regime, depending on when their next valuation date falls.
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