http://www.watsonwyatt.com Latest Watson Wyatt articles from Pensions News Flash, Pensions News Focus and Pensions News Filter en-us Copyright 2009 Watson Wyatt Worldwide http://backend.userland.com/rss091 1/5/2009 7:27:45 PM 20 The Advocate General has delivered his Opinion on the Heyday case.http://www.watsonwyatt.com/search/parser.asp?ID=19844The Government is consulting on the GMP conversion process should trustees wish to pursue this option.http://www.watsonwyatt.com/search/parser.asp?ID=19845The Pensions Regulator has published guidance for trustees on the calculation of transfer values from 1 October 2008.http://www.watsonwyatt.com/search/parser.asp?ID=19846The Pensions Regulator has published its response to the consultation on selecting mortality assumptions for actuarial valuations under defined benefit schemes and guidance on communication for defined contribution schemes.http://www.watsonwyatt.com/search/parser.asp?ID=19847A summary of other developments relating to pensions.http://www.watsonwyatt.com/search/parser.asp?ID=19848The Government has taken advantage of the three-month Parliamentary recess by consulting with various stakeholders on some of the more controversial aspects of the Pensions Bill.http://www.watsonwyatt.com/search/parser.asp?ID=19850The Government introduced a raft of new clauses and amendments during the Lords’ Committee stage of the Pensions Bill. Not surprisingly, the majority of the Lords’ debates were dominated by the operation of the new regime from 2012. The following outlines some of the more interesting points raised during the debates.http://www.watsonwyatt.com/search/parser.asp?ID=19446On 19 June, the House of Commons’ Committee completed its debates on the Finance Bill. Further debate took place during the Report Stage and Third Reading on 1 and 2 July. The Bill passed its Lords’ stages on 18 July and received Royal Assent on 21 July. The Act contains regulation-making powers to create new categories of ‘authorised payments’. http://www.watsonwyatt.com/search/parser.asp?ID=19447On 9 June 2008, the European Council of Ministers reached political agreement on a revised version of the draft Directive on agency workers. It appears that there is no longer an intention to merge this draft Directive with the draft Working Time Directive (as reported in Issue 38 of Pensions News Filter).http://www.watsonwyatt.com/search/parser.asp?ID=19448The Board of the PPF announced its final ‘levy scaling factor’ for 2008-09 on 30 May 2008, just as Issue 40 of Pensions News Filter was going to press.http://www.watsonwyatt.com/search/parser.asp?ID=19449On 5 June 2008, the Government launched a 12-week consultation exercise on ‘risk sharing’. In its consultation document, the Government identifies the different risks inherent in ‘traditional’ defined benefit (DB) and ‘pure’ defined contribution (DC) arrangements and how these risks are distributed among the stakeholders of pension provision. It also examines a range of options for risk sharing under the UK’s existing regulatory regime and considers the pros and cons associated with each one (drawing on the experience of other countries, such as The Netherlands and Denmark).http://www.watsonwyatt.com/search/parser.asp?ID=19450On 17 July, the House of Lords’ Committee completed its debates on the Pensions Bill. The Government has confirmed that it will be consulting with interested parties over the summer as to how to avoid disruption for schemes with varying pensionable earnings definitions, while still ensuring that they provide the required minimum level of benefit under the ‘Personal Accounts’ regime. The results of the discussions are likely to be debated at the Lords’ Report Stage (which is expected to start in October after Parliament returns from its summer recess). However, we hope that the Government will give some indication as to its intentions before then.http://www.watsonwyatt.com/search/parser.asp?ID=19451The Government has published a consultation document on extending the Pensions Regulator’s anti-avoidance powers. http://www.watsonwyatt.com/search/parser.asp?ID=19171The Government and the Pensions Regulator have fi nalised the regulations and Code of Practice on the new IDR procedure rules.http://www.watsonwyatt.com/search/parser.asp?ID=19172An update on the progress of the 2008 Pensions and finance Bills and an outline of further Bills expected over the forthcoming year.http://www.watsonwyatt.com/search/parser.asp?ID=19173The Government has fi nalised its new regulations on the calculation of transfer values.http://www.watsonwyatt.com/search/parser.asp?ID=19174A summary of other developments relating to pensions.http://www.watsonwyatt.com/search/parser.asp?ID=19175The Committee of European Insurance and Occupational Pensions Supervisors has published its findings into how Member States have implemented the Directive. The UK Government has also published its response to the consultation on its implementation of the cross-border provisions.http://www.watsonwyatt.com/search/parser.asp?ID=19176Over the last few months, there has been an overwhelming flurry of activity in the pensions arena. We have now seen the outcome of many of last year’s consultation exercises, including revisions to the employer debt, dispute resolution and transfer rules. However, some of last year’s proposals appear to have made no progress, such as the conversion of Guaranteed Minimum Pensions. No doubt this issue is proving more complicated than the Government first thought.http://www.watsonwyatt.com/search/parser.asp?ID=19177The Board of the Pension Protection Fund has published a consultation document on equalising for the effects of Guaranteed Minimum Pensions.http://www.watsonwyatt.com/search/parser.asp?ID=19178The House of Commons’ debates uncover further details about the proposed contribution structure for “qualifying schemes” and the Pensions Regulator’s powers to combat rogue employers.http://www.watsonwyatt.com/search/parser.asp?ID=18774The Pensions Regulator publishes two guidance documents to help improve work-based pension scheme governance.http://www.watsonwyatt.com/search/parser.asp?ID=18776The Court of Appeal upholds the High Court’s decision to quash the Government’s rejection of the Parliamentary Ombudsman’s finding of aladministration.http://www.watsonwyatt.com/search/parser.asp?ID=18777Discussion paper on the financial reporting of pensionshttp://www.watsonwyatt.com/search/parser.asp?ID=18778On 21 February 2008, the House of Commons’ Standing Committee ended its debates on the Pensions Bill 2007-08. At the time of going to press, the dates for the Report Stage had not been announced. During the debates, the Government rejected a new clause put forward by the Opposition that would have permitted ‘conditional indexation’. Instead, it announced its intention to launch a 12-week consultation exercise (starting in June) on “the various approaches to risk sharing”. It intends to report on the consultation in the autumn with a view to introducing any changes in a separate Bill, possibly in the next Parliamentary session. The Opposition has vowed to return to this issue at Report Stage.http://www.watsonwyatt.com/search/parser.asp?ID=18780Mandatory pension provision to supplement State pension entitlement draws closer.http://www.watsonwyatt.com/search/parser.asp?ID=18492The PPF has indicated that, despite improvements in scheme funding, it again intends to raise £675 million through the pension protection levy. And the DWP has announced substantial increases in administration levies.http://www.watsonwyatt.com/search/parser.asp?ID=18498Andrew Young’s review team has published its recommendations and the Government has responded by announcing a further top up for eligible FAS members.http://www.watsonwyatt.com/search/parser.asp?ID=18499The draft ‘Portability’ Directive has stumbled once more, as Member States fail to reach an agreement on vesting periods.http://www.watsonwyatt.com/search/parser.asp?ID=18501Employer debt regulations delayedhttp://www.watsonwyatt.com/search/parser.asp?ID=18502The Government has taken further steps to set out the UK pensions scene for 2012 (or thereabouts). On 5 December 2007 it published the Pensions Bill, which will establish the necessary arrangements for the introduction of automatic enrolment and the ‘Personal Accounts’ scheme.http://www.watsonwyatt.com/search/parser.asp?ID=18503The Government’s limited proposals for change could add another layer of complexity to the administration of pension benefits.http://www.watsonwyatt.com/search/parser.asp?ID=18213Has the Government finally managed to simplify the procedures for dealing with complaints? http://www.watsonwyatt.com/search/parser.asp?ID=18214The DWP is giving trustees and employers the opportunity to voice their concerns about flexible retirement provision.http://www.watsonwyatt.com/search/parser.asp?ID=18215The DWP asks whether its cross-border provisions have been a success for UK pension schemes! http://www.watsonwyatt.com/search/parser.asp?ID=18217The Pensions Regulator’s analysis highlights a number of interesting features about recovery plans under the new regime. http://www.watsonwyatt.com/search/parser.asp?ID=18218http://www.watsonwyatt.com/search/parser.asp?ID=18219The Government is already re-examining some of its latest employer-debt proposals, as a seemingly unforeseen consequence of them could spell disaster for sponsors of multi-employer schemes.http://www.watsonwyatt.com/search/parser.asp?ID=17853The Regulator revises its ‘clearance’ guidance to focus on how it expects trustees to deal with corporate transactions.http://www.watsonwyatt.com/search/parser.asp?ID=17854The PPF sets out its high-level proposals for future years’ levies, which it says would bring greater stability and certainty for levy payers.http://www.watsonwyatt.com/search/parser.asp?ID=17855