A legal look at the Pensions World Sarah Phillips and Jennifer Chambers Wednesday 3 September 2014 Aberdeen Edinburgh Glasgow

Topics tPR Funding Code of Practice Innovative scheme funding arrangements: what we are seeing in practice? Scottish Independence The new definition of money purchase benefits: implications and uncertainties Recent cases from the Pensions Ombudsman and the Courts

tPR Code of Practice – A new dawn or business as usual? What’s changed? Shift in balance – “sustainable growth of the employer” 9 Principles 15 Risk Indicators Implementing the Code – Integrated Risk Management Covenant / Investment / Contributions

Innovative Funding Structures Asset-backed funding (not so innovative anymore) Reservoir Trusts Charged Accounts Why the interest? What are the benefits? Where have they been used?

Scottish Independence

Scottish Independence – in the event of a “Yes” vote... The White Paper State Pensions Automatic Enrolment Regulatory Framework Cross-border schemes Tax

The new definition of money purchase benefits: implications and uncertainties Effective 24 July 2014 Background - Bridge Trustees case “money purchase benefits” only those benefits which cannot develop a funding deficit Retrospective effect from 1 January 1997 Key focus: hybrid schemes

New definition of money purchase benefits Implications – Increase in schemes to which certain legislation applies (funding, debt, PPF) – BUT: decisions taken by trustees in good faith between 1 January 1997 and 24 July 2014 valid except in limited circumstances – Need to agree approach for complying with statutory framework Uncertainties – DC scheme with DB underpin – money purchase until underpin “bites”

Case Round Up Gleeds – the pensions horror show Lehman – settlement reached Ombudsman round up – easy mistakes to make?

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