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

• TPR comments on continuing DC consolidation
• TPR publishes report on anti-avoidance action
• TPO gives update on its operating model review
• FCA publishes retirement income market data 2023/24
• SPP issues paper on productive finance
• Where’s your Sackers bag? Just over two weeks to go!

TPR comments on continuing DC consolidation

TPR published its latest compliance and enforcement bulletin for the first half of 2024 on 27 September 2024. In an accompanying press release, TPR commented that it has levied total fines of more than £30,000 since November 2023 in relation to breaches of the detailed value for members assessment requirements for small DC schemes (ie those with less than £100m of total assets). Around 17% of DC schemes that TPR engaged with have opted to wind up, after concluding that their schemes do not offer good value.

TPR publishes report on anti-avoidance action

On 30 September 2024, TPR published a new regulatory intervention report on a case involving a large cash payment from a sponsoring employer’s corporate group to an outside entity. The sponsor’s DB scheme had a “substantial deficit” and subsequently entered a PPF assessment period in October 2014. TPR issued a contribution notice to one individual requiring a payment of more than £1.8 million to be made into the scheme and agreed a settlement with another individual.

TPO gives update on its operating model review

On 25 September 2024, TPO published a blog on the progress it is making with its operating model review. One of the aims of the review is to speed up the resolution of complaints. A new expedited decision-making process will be applied initially to cases that TPO has assessed as having a “clear outcome”. This might include, for example, complaints about an incorrect benefit statement where “it is clear no loss was caused by the error”, and all the information needed to make a decision is supplied in the application.

The expedited process will involve an initial decision by a caseworker being issued to all parties, with an option to appeal to an Ombudsman for a Determination. TPO expects that this process will “reduce duplication”, provide shorter Determinations “similar to summary judgments” and could reduce waiting times by as much as 18 months. Following a trial over the summer, TPO plans to roll out the expedited process over the coming month.

FCA publishes retirement income market data 2023/24

On 26 September 2024, the FCA published its analysis of data received from FCA-regulated firms that provide pension and retirement income products, covering April 2023 to March 2024. Its key findings include that:

• the total number of pension plans accessed for the first time in 2023/24 increased by 19.7% compared to the previous year
• the number of DB to DC transfers continued to fall from 18,080 in 2022/23 to 7,181 in 2023/24.

SPP issues paper on productive finance

The SPP has published a paper on “solving the UK investment puzzle”, looking at the challenges in ensuring UK pension schemes invest more in the domestic market and how those challenges might be overcome. It discusses the different issues faced by DB and DC schemes and the LGPS. The paper is intended to feed into the Government’s review of the UK pensions landscape.

Where’s your Sackers bag? Just over two weeks to go!

With just over two weeks left to get your entries in, make sure you do not miss the opportunity to take a photo of your Sackers bag out and about. Post your photo on LinkedIn or Twitter using #sackersbag or send us an email at bd@sackers.com for your chance to win a £100 gift card of your choice. Entries will close on 17 October.

Further details about the competition can be found here. Good luck!