Pensions Weekly Update – 11 December 2024

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 Pensions Regulator (TPR) has published updated covenant guidance to assist trustees during the defined benefit (DB) valuation process, and with regular monitoring of the strength of the employer covenant. It is split into nine sections and introduces new terms such as “reliability period” (how long there is reasonable certainty of the employer’s cashflow to support the funding needs and investment risk of the scheme) and “covenant longevity” (how long the employer is expected to continue to support the scheme). The guidance forms the final piece of the new DB funding regime.
• The Pensions Dashboards Programme (PDP) has issued a progress report, which includes an update on its work with organisations who have volunteered to connect with the dashboards ecosystem early. The update also comments on recent amendments to dashboards standards and provides more information on the GOV.UK One Login identity service.
• HM Revenue and Customs (HMRC) has published newsletter 165. This includes a reminder that from April 2025 schemes will need to submit any returns for the tax year 2024-to-2025 onwards on the managing pension schemes service. It will not be possible to file a pension scheme return for the tax year 2024-to-2025 onwards on the pension schemes online service. The newsletter notes that some people took their tax-free pension commencement lump sum earlier than they had originally planned, ahead of the autumn budget date. HMRC confirms that the payment of a tax-free lump sum cannot be undone, and a member’s lump sum allowance will not be restored. The newsletter also includes additional clarificatory information in relation to the abolition of the lifetime allowance.
• See our latest UK Labour & Employment Quarterly Board Briefing for an update on fast-moving legislative and regulatory changes impacting employment law and people issues. The briefing includes a tracker which aims to provide boards with a guide to key upcoming legal changes, including critical dates, suggested actions and an assessment of any risk/opportunities arising. We also turn the spotlight onto workplace investigations, which can be complicated and time-consuming.
• Did you see our 1980’s themed Winter Hot Topics in Pensions? If you were around in the 1980s this may make you feel nostalgic! We highlight 10 current pensions issues for your trustee or corporate agenda.
• Look out for our fun pensions festive quiz! We will be testing your knowledge on a range of pensions facts, trivia and news items.

If you would like specific advice on any of these issues or anything else, please contact a member of our Pensions team.