Pensions Weekly Update – 24 July 2024

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Here is our weekly summary of key legal and regulatory developments relevant to occupational pension schemes that you might have missed, with links for further information.

The chancellor, Rachel Reeves, has launched the first review of the pensions landscape, with a focus on investment. The aim is to increase investment in UK productive finance and boost the growth of pension pots. The government’s press release says that “an investment shift in defined contribution schemes could deliver £8 billion of new productive investment into the UK economy” and that “action will be taken to unleash the full investment might of the £360 billion Local Government Pension Scheme to make it an engine for UK growth.” The review will be led by Emma Reynolds, the newly appointed pensions minister, whose role straddles both HM Treasury and the Department for Work and Pensions. The chancellor and pensions minister chaired an industry roundtable on Monday.
In last week's update, we noted that the new pension schemes bill would reaffirm that The Pensions Ombudsman (TPO) is a competent court for the purposes of imposing determinations relating to the recovery of overpaid pensions. TPO has said that “it is excellent news that the pension schemes bill, announced in the King’s Speech, will include a measure to restore TPO’s status as a ‘competent court’.” TPO also said that the “passage of such a bill should make ending outstanding overpayment disputes easier for all those involved, allowing for much faster and less costly resolution.” Until amending legislation is in place, however, the guidance in TPO’s current factsheet should continue to be followed.
The Labour government announced in the King’s Speech that it would be introducing a new employment rights bill within the first 100 days that would “introduce a new deal for working people to ban exploitative practices and enhance employment rights”. It would also be introducing an equality (race and disability) bill that would seek to “enshrine in law the full right to equal pay for ethnic minorities and disabled people and to introduce mandatory ethnicity and disability pay reporting”. In a guide from our Labour & Employment team, key proposals from the new government are discussed, along with an update on other employment law changes that might take place over the next six to 12 months.
Do you know what is meant by “misfeasance trading”? Restructuring lawyer Rachael Markham takes a look at the outcome of the latest case covering the fall of BHS and the duties owed by company directors.
In last week's update, we noted that the Financial Conduct Authority had published updated listing rules. A guide from our Corporate team contains more information on the changes.