Pension news

Week ending 16 October 2020

The next 15 years of TPR

The Pensions Regulator has launched for discussion its provisional corporate strategy for the next 15 years. Its focus is changing from a scheme-based view to putting the saver at the heart of all it does. The strategy reflects the shift from DB to DC pensions. The Regulator has identified five strategic goals:

  • savers’ money is secure
  • savers get good value for money
  • decisions made on behalf of savers are in their best interests
  • the market innovates to meet savers’ needs
  • TPR is a bold and effective regulator.

The Regulator expects that it will be regulating fewer but larger schemes of all types as the market consolidates – for occupational DC this could be around 50% fewer schemes and for DB around a third fewer by 2034. The final strategy is planned for publication in the new year.

Superfunds

Speaking at the PLSA conference, David Fairs, TPR executive director for regulatory policy, analysis and advice, said that the Regulator will shortly be providing guidance to trustees on its expectations of what they need to take into account when considering a move to a DB superfund or consolidator. The guidance will also cover to what extent trustees can rely on the due diligence carried out by the Regulator during the assessment process. The guidance is expected to be published next week.

Meanwhile, speaking at the same conference, the Pensions Minister said that he expects there to be another Pensions Bill in this Parliament, covering legislation for the regulatory framework for DB superfunds.

Making climate-aware investment easier

The PLSA has published a report recommending changes to help pension schemes overcome the obstacles they face in fully embracing ‘climate-aware’ investment. Discussions within the pensions industry have identified that there is a lack of infrastructure around climate-aware investing, such as inconsistent definitions and language, limited or poor quality data, as well as a lack of investment products with a full range of necessary characteristics.

Recent publications

News

23 October 2020

Pension news Week ending 23 October 2020 New superfunds guidance The Pensions Regulator has published updated guidance for trustees and sponsoring employers who are considering

Arena

Pensions Arena October 2020

This quarter’s Arena has a summary of our recent Pensions Perspective, “Endgame planning comes of age”, which looked at how long-term funding and investment plans are evolving and why companies are increasingly taking the lead in designing an endgame strategy. It also shows all the usual financial and investment analysis for the quarter ending 30 September 2020.

Perspective

Endgame planning

Journey plans or glide paths may have been around for a long time but they’re at the heart of the Regulator’s proposed new funding code. In this Pensions Perspective, Leonard Bowman looks at how long-term funding and investment plans are evolving and explains why companies are increasingly taking the lead in designing an endgame strategy for their schemes.

Arena

Pensions Arena July 2020

This quarter’s Arena has a summary of our recent Pensions Perspective, “Emerging from lockdown”, which looked at how best to tackle the most common pension issues which companies are currently facing. It also shows all the usual financial and investment analysis for the quarter ending 30 June 2020.

Perspective

Emerging from lockdown

As we keep hearing, we are living in unprecedented times. However, as we turn our attention to the future, what does the “new normal” mean for defined benefit pension schemes? In this Pensions Perspective, Leonard Bowman considers the most common pension issues that companies are facing and how best to ensure that the company approaches these on the front foot.

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