What happened in pensions in 2016: Part Four

clock • 2 min read

In the fourth and final part of our pensions timeline PP Online looks at what happened in pensions between October and December.

October

26 October - British Airways and the trustees of its pension scheme return to court. This long running dispute centres on a discretionary 0.2% increase in benefits for the 2013/14 financial year granted by trustees of the Airways Pension Scheme (APS).

November

9 November - Donald Trump elected US President.

10 November - Tata Steel UK's intention to close the British Steel Pension Scheme (BSPS) to future accrual was "raised" in discussions with unions, according to a lawyer close to the matter.

It is understood Tata Steel UK has been looking to answer the pension questions as soon as possible so it can take part in a joint venture with ThyssenKrupp in Europe.

14 November -PP reports that L&G has carried out the largest pension buyout of 2016. The £1.1bn deal covers over 11,000 members of the Vickers Group Pension Scheme which is part of the Rolls-Royce Group.

18 November -The Financial Conduct Authority (FCA) announces it is to consult on whether to make a market investigation reference on the investment consultancy market to the Competition and Markets Authority.

The call, which is the first time the FCA has exercised this power, was contained in the interim findings of the regulator's Asset Management Market Study.  

23 November - Chancellor Philip Hammond uses his first Autumn Statement to restrict salary sacrifice. Although Hammond did not specify exactly what benefits would be included in the move, he said pensions, childcare vouchers, cycle to work schemes and ultra-low emission cars (those with CO2 emissions of up to 75g/km) would be exempted from these changes.

24 November - PP reports there is an eight month backlog to process guaranteed minimum pension data at HM Revenue and Customs according to Hymans Robertson.



December

1 December - Richard Harrington confirms the DWP will issue a green paper on the future of defined benefit schemes in early 2017.


7 December - PP reports that Tata Steel UK has agreed with unions to start consulting on closing the British Steel Pension Scheme and replacing it with a "competitive" defined contribution arrangement.



21 December - The Work and Pensions Committee calls on the government to consult on giving the regulator new enforcement powers to avoid another British Home Stores disaster.

In a report about the governance of defined benefit schemes, MPs said the Pension Regulator should be able to impose more punitive fines on sponsors and be nimbler to intervene more effectively in tricky cases.

 

 

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