Pensions Weekly Update – 22 January 2025

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.

• Torsten Bell MP was appointed parliamentary secretary in HM Treasury, and parliamentary under-secretary of state in the Department for Work and Pensions on 14 January 2025. He has an economic background and previously served as the chief executive of the Resolution Foundation, which is an independent think-tank focused on improving living standards for those on low-to-middle incomes. His work includes the publication of reports on the cost of living, commenting on the impact of changes introduced by government announcements (in budgets and autumn statements) and economic changes in general. He replaces Emma Reynolds as pensions minister after she served in the role for a mere 189 days.
• A government press release says that the chancellor is to host a number of industry forums with key sub-sectors such as banking, insurance and asset management leaders with the aim of designing a financial services growth and competitiveness strategy. This follows on from a recent call for evidence.
• The Pension Protection Fund (PPF) has not yet published its final levy determination and rules for the PPF levy year 2025-2026. However, the deadlines for submitting contingent asset documents are unlikely to change from those set out in the consultation document, and are likely to be midnight on 31 March 2025 for the submission of electronic contingent asset certificates and 5 p.m. on 1 April 2025 for supporting documents. If you need assistance re-certifying any contingent assets, please get in touch with your usual firm contact.
• The Local Government Pension Scheme (LGPS) Advisory Board has received counsel's opinion from Nigel Giffin KC, which updates an earlier opinion from 2014 that considers the fiduciary duties of administering authorities. The latest opinion considers the impact of mandatory 2016 investment guidance for the LGPS, which included statements to the effect that administering authorities should not pursue policies contrary to UK foreign or defence policy, along with the subsequent court decision testing those statements. The opinion also looks at the government’s current proposals for the LGPS. The opinion covers the distinction between financial and non-financial factors when administering authorities (or, indeed, private sector scheme trustees) make investment decisions and, in relation to the government’s proposals for investing locally, counsel concludes “a policy of investing so as to boost the local or national economy will normally represent taking account of non-financial factors”. The Society of Pension Professionals sets out its views on the government’s current proposals in its response to consultation.
• If you are an employer and have previously avoided taking an employment dispute to mediation, for fear of what the process might hold, have a read of this relatively informal guide to mediation in the UK workplace.

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