Pensions news

Week ending 5 April 2019

Government publishes pensions dashboard response

The Government has published its response to the consultation on the pensions dashboard. Key details of the DWP’s plans include:

  • a commitment to bring forward legislation to compel all pension providers to make consumers’ data available to them through a dashboard
  • an expectation that the majority of schemes will be ready to ‘go live’ with their data within a three to four-year window
  • confirmation that State Pension information will be included “as soon as possible”.

Schemes will be compelled to provide their data in line with a staged timeline that prioritises membership coverage, so large DC schemes are expected to be first. Legislation for the pensions dashboard is expected to be in this year’s Pensions Bill, with the new Money and Pensions Service being responsible for the delivery of a non-commercial version.

MPs call for a tighter UK dividend regime

The House of Commons’ Business, Energy and Industrial Strategy Select Committee has published a report that calls for a structural split of the Big Four’s audit functions from their consultancy services. The report highlights the reporting and audit failures behind the demise of Carillion. It also calls for a tightening of the UK dividend regime, with action from the FRC to produce a clearer and more prudent definition of realised profits.

HMRC working group for GMP equalisation

HMRC has announced plans to form a working group to consider the pension tax issues arising as a result of GMP equalisation. The group will be chaired by HMRC and made up of a variety of industry representatives.

£1.2 billion buy-in agreement for Dresdner Kleinwort

The trustees of the Dresdner Kleinwort Pension Plan have completed a £1.2 billion full buy-in with Pension Insurance Corporation. This covers the Plan’s £900 million final salary section as well as its £300 million money purchase section. Members in the money purchase section with hybrid DC and DB benefits were allowed to choose whether to take a transfer to an alternative arrangement or convert their entitlement into a pure DB benefit that was insured under the terms of the buy-in.