Week ending 29 November 2019
The Pensions Regulator has published new guidance for trustees on running a competitive tender for fiduciary management services, in line with the CMA’s requirements. The guidance explains the key issues to consider when putting together a competitive tender exercise, including the possible use of independent third-party evaluators. The legal requirement for a competitive tender, which comes into force from 10 December 2019, applies when trustees appoint a fiduciary manager for 20% or more of their scheme’s assets.
The Conservative party has published its general election manifesto, which includes the following pension-related policies:
- address the problems which the tapered annual allowance is causing doctors
- maintain the triple lock for State pensions
- reintroduce the Pension Schemes Bill
- review the net pay anomaly
- raise the threshold for National Insurance contributions to £9,500 (with the ambition of eventually raising it to £12,500).
In its latest Pension Schemes Newsletter, HMRC has asked scheme administrators to remind members to declare their annual allowance charges on their self-assessment tax returns. This declaration is required even if the member’s scheme is paying the charge. HMRC acknowledges that “scheme members are forgetting to declare” these details on their tax returns.
The National Grid UK Pension Scheme has agreed a £1.6 billion buy-in with Legal & General, covering the benefits of around 6,000 pensioner members. This is the scheme’s second buy-in of 2019, the first being a £2.8 billion bulk annuity with Rothesay Life, which was announced in November.
In the news this week, the Regulator provides some timely guidance, the Conservatives publish their manifesto, HMRC seeks to encourage members to declare their annual allowance charges and another large buy-in is announced.
Despite the very different circumstances facing individual companies, bac‘s autumn 2019 survey reveals a surprisingly consistent picture of the actions which companies are finding most attractive to manage their DB and DC pension arrangements.
As DB liabilities have become legacy issues to be managed, governance has become the umbrella term for a broad range of risk management tools. In this publication, we look at the DB governance solutions we have helped our clients to implement.
As pension trustees and sponsors get serious about good governance, a key question is whether technology can play a meaningful role or is simply an expensive addition that looks good but adds little value?
In this Pensions Perspective, Andrew Udale-Smith looks first at the different types of adviser review and when and how they might best be used. Then he focuses on how to design a smooth and efficient process for a full market tender.
Unit 13A | Church Farm Business Park | Corston | Bath | BA2 9AP | Telephone: +44 (0) 1225 481450
Registered Address: 37 Great Pulteney Street, Bath BA2 4DA | Company Registered in England & Wales Company No. 07975135