Pensions Law Handbook

Description

The definitive and comprehensive guide to pensions law and practice in the UK, outlining the main responsibilities of key personnel in the operation and governance of workplace pensions. It provides guidance through the complex web of pensions-related statues, regulations, regulatory guidance and case law. The 15th edition covers the raft of legislation in the next Pensions Bill which makes important changes to Pension Regulator powers, scheme funding and scheme design (DC and DB consolidation) amongst other things. The Bill is expected to be announced in the next parliamentary session. Preface Table of Cases Table of Statutes Table of Statutory Instruments Abbreviations and References Chapter 1 Pension provision in the UK – an introduction Introduction A brief history of pension legislation in the UK Retirement provision by the State Occupational pension schemes Membership of occupational pension schemes Making contributions to occupational pension schemes Benefits payable from occupational pension schemes Increasing pensions in payment Forfeiture and suspension of benefits Personal pension schemes Stakeholder pension schemes United Kingdom’s withdrawal from the European Union Chapter 2 People involved with pensions Introduction Trustees Actuaries Auditors Investment managers Pension Schemes Services of Her Majesty’s Revenue and Customs National Insurance Services to Pensions Industry The Pensions Regulator Reporting breaches of the law Reporting notifiable events The Pension Protection Fund (‘PPF’) Financial Assistance Scheme NEST Corporation The Pensions Advisory Service The Money and Pensions Service The Pensions Ombudsman Other bodies Chapter 3 Trustees Introduction Who can be a trustee? Type of trustee Employment protection for trustees under the Employment Rights Act 1996 Appointment, removal and discharge of trustees Trustees’ duties The Pensions Act 2004 Trustee meetings Member-nominated trustees Internal dispute resolution (‘IDR’) Protection from liability Data protection Trustees’ duties to the employer Reporting breaches of the law Reporting notifiable events Internal controls Chapter 4 State pension provision and contracting-out Introduction State pension provision A brief history of contracting-out The contracting-out certificate Salary-related schemes Amending COSR schemes Defined contribution schemes and mixed benefit schemes Termination of contracted-out employment Chapter 5 Employer insolvency: the implications for pension schemes Introduction Insolvency events The role of pension scheme trustees in insolvency proceedings The Pension Protection Fund The Financial Assistance Scheme Winding up of a pension scheme Compromising pension liabilities where insolvency is likely or as part of an insolvency process Consequences of corporate insolvency under English law – the regimes Chapter 6 Protection for early leavers Introduction Scope of early leaver legislation Preservation Revaluation The move to CPI for revaluation Transfer values – introduction The right to a cash equivalent Exercising the right to a cash equivalent Trustees’ duties after member exercises his right Transfer incentive exercises Cash transfer sums Disclosure requirements Chapter 7 Employment issues Introduction What is the employee promised? What are the employer’s obligations in relation to the pension scheme? How do the trustees fit in? Entitlements in cases of dismissal or redundancy Business reorganisations Employer’s lien Additional protections Conclusion Chapter 8 Pensions and divorce Introduction Position prior to PA 1995 Earmarking – impact of PA 1995 Pension sharing Family Procedure Rules 2010 Overlap between earmarking and pension sharing Civil partnerships and same-sex marriages Pension Protection Fund Industry guidance Chapter 9 Discrimination Introduction Equality Act 2010 Sex discrimination/equal pay Age discrimination Same sex partners Gender recognition Temporary and agency workers Disability discrimination Religion or belief discrimination Race discrimination Insurance Table of relevant case law Chapter 10 Investment Introduction The meaning of investment Trading or investing? Power of investment Duties of trustees when exercising their investment power Statutory obligations The Financial Services and Markets Act 2000 The regulatory structure Regulated activities The selection and supervision of fund managers The liability of fund managers Voting rights as a consequence of share ownership – is it a trust asset? Trustee liability and protection Myners’ Report: voluntary Code of Practice Chapter 11 Funding, deficits and surpluses Introduction Pre-PA 1995 requirements relating to funding Funding practice Pensions Act 1995 Pensions Act 2004 Schemes in deficit What is a surplus? Why surpluses can be an issue Who ‘owns’ a surplus? HMRC requirements relating to the reduction of surpluses Pensions Act 2004 – position from 6 April 2006 Trust law requirements relating to the reduction of surpluses Asset-backed contribution arrangements Chapter 12 Winding up Introduction Winding up – general Deferral of winding up by trustees The winding up process Trustee protection Sanctions against trustees under PA 1995 Chapter 13 Amendments and scheme redesign Introduction Key considerations Amendments Bulk transfers and scheme mergers – general Bulk transfers – specific issues where winding up has not commenced Bulk transfers – specific issues where winding up has commenced Bulk transfers – overview Chapter 14 Governance of defined contribution schemes and automatic enrolment Governance of defined contribution schemes Automatic enrolment Re-enrolment Opting in Options for employers Employer disclosure requirements Compliance and the role of the Pensions Regulator Automatic enrolment: some difficult issues Automatic enrolment: the future Chapter 15 Commercial transactions Introduction The sale documents Shares or assets Whether the sale will give rise to a transfer payment Transactions where the purchaser takes over the whole scheme Transactions involving a transfer payment Employer debt Moral hazard Other types of scheme Public sector transfers Conclusion Chapter 16 Pensions dispute resolution and litigation Introduction Non-court forums for dispute resolution Regulatory bodies Court proceedings Alternative dispute resolution Chapter 17 Taxation of registered schemes Section A: Introduction Section B: Pre-A-Day Revenue limits Section C: Non-registered pension schemes and other arrangements Appendix Summary of the provisions of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (SI 2013/2734) (the ‘Disclosure Regulations’), and other requirements to disclose information in relation to registered occupational pension schemes Index