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

• EIOPA publishes Work Programme 2016
• FCA releases Discussion Paper
• HMRC publishes Pension Schemes Newsletter 76
• PPI issues Briefing Note 79

EIOPA publishes Work Programme 2016

On 16 February 2016, EIOPA published its work programme for 2016, setting its objectives which include:

• ensuring transparency, simplicity, accessibility and fairness across the internal market for consumers
• leading the development of sound and prudent regulations supporting the EU internal market
• improving the quality, efficiency and consistency of the supervision of EU occupational pensions
• identifying, assessing, mitigating and managing risks and threats to the financial stability of the occupational pensions sector.

In the occupational pensions arena, the work programme confirms that EIOPA believes that it has an important role in fulfilling the objective of the EU to develop an adequate, safe and sustainable pensions system. Therefore, as a high priority, EIOPA will “allocate significant effort to selective development of the regulatory framework governing occupational pensions such as provision of information to members and beneficiaries. EIOPA will also deliver its own initiative advice on solvency for IORPs during 2016, having in 2015 delivered the first stress test of occupational pensions”.

The work programme also confirms that EIOPA will continue to work on personal pensions regulation, including advice on a single market for personal pensions.

FCA releases Discussion Paper

The FCA published a Discussion Paper on 22 February 2016 on the “Ageing population and financial services”. The Paper encourages firms to do more to support the UK’s ageing population and to ensure that consumers can access the financial products and services they need at every stage of their life.

The paper launches a project looking at the way in which financial services meet the needs of older consumers, with a view to publishing a series of recommendations for future action in 2017. The FCA invites responses from stakeholders by 15 April 2016.

Tracey McDermott, acting chief executive of the FCA, said: “There is a real and urgent challenge for the financial services sector to develop new and innovative products to meet the needs of our changing population […] the FCA has a key part to play in ensuring we encourage appropriate innovation that also provides proper levels of protection for consumers.”

HMRC publishes Pension Schemes Newsletter 76

On 18 February 2016, HMRC published Pension Schemes Newsletter 76. Among other things, it includes:

• further detail on the interim process for applications for new protections FP16 and IP16, as promised in earlier newsletters. The interim process is to be used where a member wishes to rely upon protection when taking benefits between 6 April and July 2016 – that is, prior to the introduction of the online registration process in July 2016. The newsletter contains pro forma letters for members to use, to help ensure HMRC receives the information it requires. The newsletter also contains advice for members affected by the reduction in LTA, who want or need to retire on or immediately after 6 April 2016, but who do not receive their temporary reference number from HMRC confirming protection in time
• information on reclaiming overpaid tax on death benefits. From 6 April 2016, changes to the tax treatment of certain death benefit payments mean that beneficiaries can reclaim overpaid tax deducted in year. HMRC intends to produce new forms in the new tax year to assist those intending to make such a claim
• comments on Relief at Source and annual returns of individual information.

PPI issues Briefing Note 79

The PPI released its latest Briefing Note (79) – “Recent developments in the Local Government Pension Scheme (LGPS)”, on 15 February 2016.

The Briefing Note covers some of the history of LGPS, including previous Government reforms, and summarises the current proposed changes (including the pooling of funds and increased investment in  infrastructure in the UK), highlighting key areas (scale, costs, governance and infrastructure), along with possible partnership arrangements. Finally, it seeks to outline further questions to be considered as the LGPS changes are implemented.