TPR – Analysis of recent valuation: The Pensions Regulator (TPR) has released its 2024 analysis of occupational defined benefit scheme funding, focusing on tranche 17 schemes with valuation dates from 22 September 2021 to 21 September 2022. The report compares tranche 17 schemes with tranche 14, dated three years earlier. TPR highlights that 47% of tranche 17 schemes reported a surplus, up from 32% in tranche 14, and the average recovery plan length decreased from 6.2 years to 4.7 years. For full details, visit: https://www.thepensionsregulator.gov.uk.
Increased to minimum pension age – PASA guidance: The Pensions Administration Standards Association (PASA) has released guidance to help trustees and administrators prepare for the upcoming increase in the Normal Minimum Pension Age (NMPA) from 55 to 57, effective 6 April 2028. The guidance advises on identifying members with a protected pension age affected by this change, handling transferred-in pension protected ages, and understanding the differences from the 2010 NMPA increase. It also includes a checklist of actions to be taken in advance. The full guidance is available at: https://www.pasa-uk.com.
DC schemes – Fines issued: The Pensions Regulator (TPR) issued ten enforcement actions between January and June 2024 for breaches of the detailed value for members (VfM) assessment, required for specified defined contribution (DC) schemes, or the DC sections of hybrid schemes. Of these actions, seven were fines totalling £19,250, while three were improvement notices. This brings the total fines for VfM breaches to £33,750. TPR has warned that more penalties may follow after reviewing scheme return data. So far, around 17% of DC schemes involved in TPR’s pilot initiative have wound up due to poor value, which suggests that many more wind-ups will follow.
TPR issues Contribution Notice: The Pensions Regulator (TPR) has published a regulatory intervention report on its investigation into The Meghraj Group Pension Scheme (MGPS) following the transfer of £3.7 million to an entity outside the employer group. TPR issued a £1.8 million contribution notice against one director and reached a settlement with another. The report outlines how contribution notice sums are calculated and reinforces TPR’s commitment to protecting members and the Pension Protection Fund by investigating complex arrangements.
First Collective Defined Contribution scheme launched: The Royal Mail Collective Pension Plan launched on 7 October 2024, with most employees automatically enrolled on this date, or upon reaching one year of continuous service, if later. As the UK’s first collective money purchase scheme, it offers members a lifetime income and a lump sum at retirement. Members contribute 6% of their pensionable pay, while Royal Mail adds 13.3%, with an additional 0.3% reserved mainly for ill-health benefit premiums.
