Pension news

Week ending 29 January 2021

Climate risk requirements

The DWP has responded to its 2020 consultation on improving governance and reporting on climate risk for occupational pension schemes and begun a new consultation on the regulations to bring the new regime about. Large schemes will be required to disclose their approach to managing climate risks and opportunities, in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). The new regulations will require trustees to satisfy the 11 recommendations of the TCFD and to report annually on how they have done so.

The focus is still on the largest schemes – with authorised master trusts and schemes with £5 billion of assets in scope from October 2021, whilst schemes with £1 billion of assets will follow one year later. One change has been to exclude bulk annuity contracts from counting towards the asset threshold. Scenario analysis has been expanded to include the impact of climate change on the sponsor’s covenant, as well as on the scheme’s liabilities. The possible extension of the new regime to smaller schemes will be reviewed in 2023 and consulted on in 2024. The new consultation runs until 10 March 2021, with the resulting regulations due to come into force on 1 October 2021.

Accompanying guidance from the Pensions Climate Risk Industry Group has also been published.

Transfer-blocking powers

The Pensions Minister is reported to have said that he expects regulations which support trustees in blocking transfers that show signs of being a scam to come into force in September or October 2021.

Pension Guidance delivery

MaPS has published its report and accounts for the year ending 31 March 2020, showing strong performance across all its services. It delivered 213,892 pension guidance sessions, as well as another 205,493 Pension Wise sessions. The pandemic has had a significant impact on its activity in 2020/21, with the number of calls to MaPS having significantly increased.

More de-risking

Legal & General has agreed a £400 million assured payment policy for one of its own DB schemes. This will provide insurance against specific scheme-related risks (including movements in interest rates and inflation) for 200 deferred and 385 current pensioner members.

Recent publications

News

BAC News

Hymans Robertson announces today that it has acquired Bath Actuarial Consulting (BAC). At the same time Andrew Udale-Smith and Leonard Bowman from Bath Actuarial Consulting (BAC) will be joining the firm as new Partners.

News

29 January 2021

In the news over the last week, the DWP responds to its consultation on climate risk governance and reporting for pension schemes, transfer-blocking powers could be on the horizon, MaPS delivers on pension guidance and there’s more de-risking.

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.

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