This insight provides our usual round-up of the latest pensions news which this week includes the extension of Anthony Arter’s DPO appointment, TPR’s new digital, data and technology strategy and its report on a scam case, a pensions dashboards update, HMRC’s latest newsletter, the PPF’s 2023-24 accounts and the transition plan for Companies House changes.
Anthony Arter DPO appointment extended up to January 2025
The Pensions Ombudsman (TPO) has confirmed that Anthony Arter’s (the former TPO) appointment as Deputy PO has been extended again for up to a further three months (from 16 October 2024) to assist in the finalisation of a new Deputy PO recruitment exercise.
TPR round-up
TPR publishes digital, data and technology strategy
On 22 October 2024, the Pensions Regulator (TPR) published its five-year digital, data and technology strategy setting out how TPR and the pensions industry should “adapt to, and embrace technology and a changing pensions market”. It covers artificial intelligence in the pensions sector and the move to technology-driven administration processes in the DC setting. TPR’s strategy objectives include:
- Decreasing regulatory ‘burden’: TPR is considering how to allow schemes to submit data to just one body where they must currently provide information to several agencies.
- More effective regulatory oversight of scheme risks: The digital service that TPR is setting up for schemes to submit valuations under the new DB funding regime is an example of how TPR’s new digital approach will allow more effective management of risks.
- Industry efficiencies: TPR wants the pensions industry to look at how it can modernise systems and improve data sharing.
- Improving TPR data and technology facilities: doing so will make TPR a more efficient, effective and advanced regulator.
- Innovation: TPR is considering the use of open data standards to assist with data flow and innovate.
TPR is going to set up an industry working group to assist with this initiative.
TPR publishes scam video and regulatory intervention report
On 24 October 2024, TPR published a Scams Awareness video in association with the Pension Scams Action Group of a case study involving a nurse who lost her pension benefits to fraudsters. The video highlights the devastating effect that such scams can have on individuals.
Also published was TPR’s regulatory intervention report. During 2023, 559 pension fraud reports were made, with a cumulative loss of £17,750,635. This represented an average loss of £46,959 per individual.
Action: Trustees should remain vigilant and, if they have not done so already, consider making TPR’s Pledge to combat pension scams.
Pensions dashboards
TPR contacting certain pension schemes regarding data monitoring and improvement
Pensions Age has reported that TPR has started to contact pension schemes which TPR believe are below par on data quality and within the scope of pensions dashboards. TPR has been asking them about their data monitoring and improvement plans ahead of their pensions dashboard’s connection date.
Action: Trustees should ensure they have suitable data monitoring and improvement plans in place – TPR’s code of practice sets out TPR’s expectations and guidance on data.
Government restates commitment to dashboards
The Pensions Minister’s 22 October 2024 written statement on dashboards confirms the Government’s commitment to the dashboards timetable, albeit noting it was “still too early” to set a date from which the public can access dashboards. Ms Reynolds also explained that the Pensions Dashboards Programme will be concentrating on the connection and launch of the MoneyHelper dashboard service provided by MaPS, after which it will consider commercial dashboard providers.
HMRC Newsletter 163 and LTA removal
HMRC’s Newsletter 163 covers five different topics including the two further sets of regulations which will make technical amendments to the lifetime allowance abolition regime. The newsletter provides a useful summary of the key changes made by the regulations.
PPF publishes annual report and accounts for 2023-24
On 24 October 2024, the Pension Protection Fund (the PPF) published its report and accounts 2023-24 which, amongst other things, reveals that:
- the PPF’s reserves have increased from £12.1bn last year to £13.2bn;
- it has £32.1bn of assets under management – a slight fall from £33bn as at 31 March 2023 predominantly due to the matching portfolio dropping in value;
- liabilities fell from £20.3bn in 2023 to £18.8bn in 2024 mainly due to higher interest rates;
- £173m was collected under the PPF levy, a material decrease from the £386m collected in 2022-23; and
- the PPF’s assets returned 7.2%, a significant increase from last year’s 1.9%.
The PPF’s strong financial position will only strengthen calls for legislative changes to allow the levy to be set at zero. At present, legislation caps how much the levy can be increased each year to 25% - this prevents marked increases but also stops the PPF from being able to drop the levy below a certain amount as doing so could hinder the PPF being able to react to funding issues.
“While these legislative issues have dominated conversations with both members and levy payers this year, I would not want to overshadow our continued work to deliver the highest levels of service for both groups and the innovative improvements made to enhance service and efficiency.”
[Source: chair’s statement]
As regards the possibility that the PPF could act as a public sector consolidator, the PPF’s accounts note that:
“We stand ready to act on how government and Parliament wish to take this issue forward. We’ll also continue to think how else we can support with solutions to challenges in the sector.”
For more information, see our insight.
Transition plan for corporate trustee changes
On 16 October 2024, Companies House published a transition plan policy paper for implementing the Economic Crime and Corporate Transparency Act 2023 which will make significant changes to how Companies House operates and “improve transparency over UK companies and other legal entities”.
Included will be corporate registration changes relevant to corporate trustees including identity verification requirements (see Gateley’s insights (1) and (2)). It is anticipated that the identity verification changes will be in place by autumn 2025. A compulsory new process will be set up for incorporation of companies and new director and PSC (persons with significant control) appointments and a 12-month transition phase will start allowing existing directors and PSCs to go through the verification process as part of the annual confirmation statement submission.