We are beginning to see the Pensions Regulator flex his muscles. The last six months have seen the first Contribution Notice served and an appetite for a fight with the Canadian courts in the Nortel determination.
The latest example comes this week with a determination to throw a Financial Support Direction around the Lehman Brothers group, presumably with the intention of maximising the potential recovery for the Lehman’s final salary scheme.
The rules on pension scheme employer-related investments (ERI) are changing. The DWP announced yesterday (2 September) that it has laid regulations before Parliament amending the 2005 Investment Regulations so that, from 23 September, pension scheme investments in certain pooled funds are no longer excluded from the 5% limit on employer-related investments. So what will this mean for trustees?
Quite a few of our clients have already cut scheme administration costs by cashing out low value benefits, including pensions in payment which in some cases cost more to pay out each year than the annual pension is actually worth. Other clients are still thinking about it – but change is in the wind and it would be sensible to act sooner rather than later.
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