What happened in pensions in 2017: Part Two

James Phillips
clock • 6 min read

This year has been a big year for the pensions industry. In a four-part review of 2017, James Phillips looks at what happened between April and June this year.

April

4 April - The Pensions Regulator (TPR) secured its first ever criminal conviction. Ashley Wilson Solicitors and partner Anthony Wilson were fined £16,000 for failing to comply with the watchdog's demand for information.

5 April - The Pensions Ombudsman (TPO) rules Enfield Council cannot withhold pension benefits for a man after he stole £448,000 from the council.

5 April - TPR won its second conviction just a day after the first one, this time seeing Yateley Industries for the Disabled chief executive £6,620 for not handing over information it needed.

11 April - The Department for Work and Pensions (DWP) announces 500,000 employers have been brought into auto-enrolment (AE) since its launch in 2012.

11 April - Charles Counsell announces he will leave TPR to become chief executive Money Advice Service.

13 April - Royal Mail confirms it will shut its defined benefit (DB) scheme to future accrual.

18 April - Theresa May announces a snap election in a decision that industry said put the state pension age and triple lock and pensions tax relief ‘up for grabs'

18 April - Work and Pensions Committee (WPC) chairman Frank Field accuses Bernard Matthews' owner Rutland Partners of ‘lining their own pockets' by rejecting a deal that may have saved its pension scheme from entering the Pension Protection Fund (PPF).

20 April - Then Pensions and Lifetime Savings Association (PLSA) chief executive Joanne Segars announces she will step down after more than 10 years at the helm.

21 April - TPR promises to be "focused, faster and more frequent" in its interventions where schemes are underfunded or it suspects avoidance.

24 April - The DWP launches a consultation on allowing employers in multi-employer schemes to delay paying their section 75 debt under a new deferred debt arrangement.

26 April - A letter from the DWP reveals it does not expect the National Employment Savings Trust (NEST) to pay off its £1.2bn debt until 2038.

27 April - The DWP confirms it will amend legislation to allow contracted-out benefits to be transferred to a scheme which has never been contracted-out.

27 April - WPC chairman Frank Field expresses frustration at TPR's "reluctance" to publish its final settlement with Sir Philip Green over the BHS pension schemes.

28 April - PP reveals the DWP will deliberately miss its statutory deadline of 7 May to publish its response to John Cridland's independent review of the state pension age.

28 April - Royal Mail puts forward a cash balance scheme - where members would be guaranteed a lump sum on retirement - to replace its DB scheme.

28 April - The Pension Schemes Act 2017 receives Royal Assent, setting out a master trust authorisation regime.

 

May

2 May - Theresa May promises TPR will receive merger and acquisition veto powers if the Conservative Party is re-elected, as well as making criminal prosecution possible for "unscrupulous bosses".

8 May - TPR fines Johnson Shoes £40,000 for failing to meet its auto-enrolment (AE) duties because it was "too busy".

8 May - A settlement is reached in the Nortel Networks case after eight years since its insolvency. Around £1bn was expected to be given to the company's UK pension scheme.

10 May - TPR agrees to meet members of the Local Government Pension Scheme (LGPS) after concerns arise that the funds were ignoring climate change risks.

11 May - Then TPR executive director for regulatory policy Andrew Warwick-Thompson announces plans to step down in order to become chief executive of the LGPS Central pool.

15 May - TPR issues a warning to companies that it will increase scrutiny if it thinks dividend payments are disproportionate to deficit recovery contributions.

16 May - The British Steel Pension Scheme (BSPS) moves one step closer to a regulated apportionment arrangement (RAA) after "key commercial terms" are agreed between Tata Steel, TPR and the PPF.

17 May - The LGPS launches a cost transparency code for its asset managers, with a large number quickly signing up.

17 May - TPR tells the LGPS to improve its administration and governance amid concerns some were not carrying out data audits or committing to improvement plans.

19 May - British Airways (BA) loses a landmark High Court battle to block a 0.2% discretionary increase granted by the trustees of its Airways Pension Scheme (APS). It has since confirmed the decision will be appealed.

30 May - Richard Butcher was named the next chairman of the PLSA, taking over from Lesley Williams at its annual conference in October.

31 May - Chris Hitchen announces plans to step down from chief executive of RPMI Railpen after 13 years.

 

June

1 June - TPR and the PPF agree an RAA for the Hoover (1987) Pension Scheme with the company paying £60m into the scheme, as well as granting it a 33% stake in the firm.

1 June - Barnado's trustees confirm they will take their indexation swap case to the Supreme Court after the Court of Appeal rejected their arguments to swap the scheme from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI).

9 June - The snap general election results in a hung parliament despite a consensus view it would result in a resounding Conservative victory. The Conservatives negotiate a confidence and supply deal with the Democratic Unionist Party.

12 June - David Gauke is named secretary of state for work and pensions, taking over from Damian Green.

13 June - TPR releases tranche 12 funding data, revealing the ratio of deficit recovery contributions to dividend payments had declined.

14 June - Then-pensions minister Richard Harrington is reshuffled into the Department of Business, Energy and Industrial Strategy.

14 June - Frank Field confirms he will re-run for the chairmanship of the WPC.

15 June - Guy Opperman is named pensions and financial inclusion minister

16 June - In its response to the DB green paper, TPR tells the government it needs stronger clearance and information-gathering powers to be "more efficient and effective".

19 June - In the Queen's Birthday Honours, LGIM head of personal investing Helena Morrissey is made a dame, while Hargreaves Lansdown co-founder Stephen Lansdown is made a CBE.

21 June - TPR pledges to "use its teeth" through its contribution-setting section 231 powers.

21 June - In the Queen's Speech, the government confirms plans to merge the Money Advice Service, The Pensions Advisory Service and Pension Wise into a single financial guidance body.

22 June - The High Court deems the Department for Communities and Local Government's (DCLG) investment rules for the LGPS - which barred ethical policies contrary to central government foreign and defence policy - unlawful.

26 June - TPR ends its three-year probe into Coats Group after agreeing nearly £300m will be paid to its three pension schemes.

27 June - TPR publishes its regulatory intervention report on the BHS settlement, revealing it had issued more than 120 notices to the company requiring it to provide information to the regulator.

28 June - The Financial Conduct Authority (FCA) publishes its final report of its asset management market study, finding potential competition issues in the investment consultant market, and recommending a referral to the Competition and Markets Authority.

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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