There’s been a raft of important news this month, with top stories including the long-awaited publishing of draft regulations for the pensions dashboard.
Policy watch…
The Pensions Regulator (TPR) laid out its key priorities for the new year on 24 January, with chief executive Charles Counsell highlighting collective defined contribution (CDC) development, ESG, scams, and diversity as key focal points.
The regulator also opened another consultation on CDC schemes, confirming trustees will be able to apply for authorisation to run one from August.
January saw the Department for Work and Pensions (DWP) urged to close a gap in treatment between Financial Assistance Scheme and Pension Protection Fund (PPF) members. It comes after the landmark Hampshire v PPF case in 2018.
The end of the month also saw draft regulations for the pensions dashboards published by the DWP. The industry will have until 13 March to provide feedback.
What else has been going on…
The new year has seen more news on the risk reduction front with Just Group confirming its largest ever deal on 21 January - a £345m buy-in with an unnamed global distribution company. Standard Life agreed a £1.7bn buy-in for Imperial Tobacco on 13 January, and a £1.7bn buy-in for Gallaher Pensions on 20 January, while Legal & General (L&G) agreed a £75m buy-in with the Triplex Lloyd scheme on 27 January.
The month also saw Girls' Day School Trust teachers in the Teachers' Pension Scheme confirm they would strike against their employer's proposal to withdraw them.
Hymans Roberton has urged defined benefit (DB) schemes to update with PPF valuation to save on levy payments this year. The consultancy found those funds that hold a 2020 triennial valuation are at risk of paying more due to the timing of their valuation with the pandemic.
In other news, WTW sold the Asset Management Exchange to Irish fund manager Carne Group on 25 January, confirming it would take a small stake in the overall business as part of the deal.
The Church of England Pensions Board announced plans on 25 January to vote against mining company chairs that do not meet voluntary global safety standards.
But what of the latest on the Universities Superannuation Scheme (USS)? Sponsoring employer representative Universities UK and the University and College Union (UCU) have clashed again after UCU sent a new list of proposals to the Joint Negotiating Committee last week. It included a long-term proposal to up member contributions to 25.2%.
An agreement was finally reached for the sale of River and Mercantile Group (R&M), which has been all-share acquired by AssetCo. Shareholders set to receive 0.07392 new shares for each R&M share they hold.
Isio confirmed it has completed its acquisition of Premier Pensions, with the deal given the green light by the Financial Conduct Authority four months after it was first announced.
A man charged with defrauding pension scheme members out of £13.7m of their savings pleaded guilty to the offence in court on 14 January, having previously pleaded not guilty. The fraud - which took place between 2012 and 2014 - previously saw Alan Barratt become the first person to be successfully extradited by TPR in conjunction with the Metropolitan Police.
And finally, the £13bn National Grid UK Pension Scheme completed a fiduciary management deal with Russell Investments on 31 January. Editor Jonathan Stapleton covered the transaction - one of the largest outsourced CIO deals to date.
Tech rollout…
Standard Life announced on 27 January that it had broadened the scope of its client analytics tool. It will now allow trustees and employers to track members' progress alongside the Pension and Lifetime Savings Association's Retirement Living Standards.
Around the industry…
The new year started with the news that industry heavyweights Mitesh Sheth (Redington), Stuart McDonald (Lloyds Banking Group), Frank Field (former Work and Pensions Committee chair), Nigel Wilson (L&G) and Martin Lewis (MoneySavingExpert) had been recognised in the 2022 New Year Honours list.
After more than five and a half years with the Professional Pensions team, deputy editor James Phillips hung up his hat on 28 January to move to pastures new. He has penned a leaving opinion piece, ‘Slow and boring? How wrong I was about pensions'. James will be greatly missed by the editorial team and the wider PP staff and we wish him the very best in his new role with XPS Pensions Group.
After almost six years as ‘Willis Towers Watson', the UK's largest pensions consultancy has rebranded to WTW. Announcing the change on 12 January, chief executive Carl Hess said the acronym better reflected the "clarity and actionable solutions" the firm brings to the challenges of today's market.
TPR also released its annual report on defined contribution schemes this month which revealed there are currently a total of 28,360 schemes. Senior correspondent Holly Roach covered the report's launch and has summed up all its findings here.
Key January voices…
Mantle Services head of proposition Graeme Riddoch says good quality data is vital to connecting members with their pensions.
The expansion of auto-enrolment is coming every closer, AJ head of personal finance Laura Suter says. Is AE a good idea for everyone?
How and if pensions assets can be used for venture and growth capital depends on the barriers around investment, says Brighton Rock Group head of research Con Keating.
New faces…
Just Group - Pretty Sagoo appointed as managing director of the DB de-risking business
PGIM - Eugenia Unanyants-Jackson named as first global head of ESG
NextGen - Caroline Escott appointed to the position of chair
USS - Alain Kerneis joins as trustee board director
Goldman Sachs Asset Management - Ed Francis named as managing director
Keep up to date with all the latest moves on PP's People Moves blog here.
Until next month!
