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Doing harm by doing good: the political economy of pensions legislation

Robin Ellison, Pinsent Masons FS KTN Conference 20/21 March 2014. Doing harm by doing good: the political economy of pensions legislation. Opening video. Financial http ://www.youtube.com/watch?v=2tfB-SSYL1A. Introduction. Pensions legislation Growth Drivers for growth Outcomes

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Doing harm by doing good: the political economy of pensions legislation

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  1. Robin Ellison, Pinsent Masons FS KTN Conference 20/21 March 2014 Doing harm by doing good: the political economy of pensions legislation

  2. Opening video • Financial http://www.youtube.com/watch?v=2tfB-SSYL1A

  3. Introduction • Pensions legislation • Growth • Drivers for growth • Outcomes • Quantity (amount) • Quality (complexity) • Consequences • Costs • Coverage • Deregulation

  4. Quantity I

  5. Quantity II

  6. Decline of DB pension schemes I Active members of private sector workplace and individual pensions, 1950-2010 (in millions)

  7. Decline of DB pension schemes

  8. Decline of DB pension schemes

  9. Quantity III • Regulatory tone • Regulatory complexity • Regulatory paperwork • Briefings • No 1: Contributions - Reporting Late Payment to Occupational Pension Schemes (revoked) • No 2: Contributions - Reporting Late Payment to Personal Pension Schemes (revoked) • No 3: Pensions Tax Simplification • Codes of Practice • No 1: Reporting Breaches of the Law [tpr code 01] • No 2: Notifiable Events [tpr code 02] • No 3: Funding Defined Benefits [tpr code 03] • No 4: Early Leavers - Reasonable Periods [tpr code 04] • No 5: Reporting Late Payment of Contributions to Occupational Money Purchase Schemes [tpr code 05] • No 6: Reporting Late Payment of Contributions to Personal Pensions [tpr code 06] • No 7: Trustee Knowledge and Understanding (TKU) (replaced) • Scope Guidance: Trustee Knowledge and Understanding: Defined Benefit Schemes with Associated Defined Contribution Arrangements (replaced) • Scope Guidance: Trustee Knowledge and Understanding: Defined Contribution Schemes (with no Link to Defined Benefit Arrangements) (replaced) • No 7 (Second Issue): Trustee Knowledge and Understanding (TKU) [tpr code 07] • Scope Guidance: Trustee Knowledge and Understanding (TKU): Defined Benefit Schemes with Associated Defined Contribution Arrangements • Scope Guidance: Trustee Knowledge and Understanding (TKU): Defined Contribution Schemes • Scope Guidance: Trustee Knowledge and Understanding (TKU): Small (12-99 Members) Fully Insured Defined Contribution Schemes • No 8: Member-nominated Trustees and Directors - Putting in Place and Implementing Arrangements [tpr code 08] • No 9: Internal Controls [tpr code 09] • No 10: Modification of Subsisting Rights [tpr code 10] • No 11: Dispute Resolution - Reasonable Periods [tpr code 11] • No 12: Circumstances in Relation to the Material Detriment Test [tpr code 12] • Draft Code: Reasonable Periods for the Purposes of the Occupational Pension Schemes (Disclosure of Information) Regulations 2006 (revoked) • Consultation - Consultation Reports • Changes to our Trustee Register • Code of Practice 12: Circumstances in Relation to the Material Detriment Test • Case Team Procedure • Cross-Border Schemes: The Approach to Implementation by the Pensions Regulator • Determinations Panel Procedure • Defined Benefit Multi-employer Schemes and Employer Departures • Good Practice when Choosing Assumptions for Defined Benefit Pension Schemes with a Special Focus on Mortality • Guidance - Conflicts of Interest • Guidance on Transfer Incentives • Guidance on Calculation of Cash Equivalent Transfer Values • How the Pensions Regulator will Regulate Defined Contribution Schemes in Relation to Risks to Members • How the Pensions Regulator will Regulate the Funding of Defined Benefits • Monitoring Employer Support: Covenant, Contingent Assets and Other Security • Record-keeping • Record-keeping: Measuring Member Data • Review of the Trustee Knowledge and Understanding (TKU) Code of Practice (Code of Practice No. 7) and Scope Guidance • Revised Clearance Guidance • Revised Guidance on Internal Controls • Statement and Good Practice Guidance (Winding-up) • Winding up: Avoiding Delays • Consultation - Response Papers • A Review of the Form and Content of Pension Scheme Report and Accounts • Abandonment of Defined Benefit Pension Schemes • Enabling Good Member Outcomes in Work-Based Pension Provision • Enabling Good Member Outcomes in Work-Based Pension Provision (detailed response) • How the Regulator will Promote Better Governance of Work-Based Pension Schemes • Determination Guidance • Determinations • Determinations Panel Procedure • Determinations Panel: Standing Orders • Determination Notices 2005/06 • Derfshaw Limited Retirement Benefits Scheme • Ericsson Employee Benefits Scheme • Ericsson Employee Benefits Scheme • Hewson McElroy Investments Limited Retirement Benefit Scheme • HHT Plc Retirement Benefits Scheme

  10. Quantity IV • J O Walker & Company plc Pension & Life Assurance Scheme • Main Top Hotel and Leisure Limited Retirement Benefit Scheme • Prudential Company Retirement Schemes • The Roy Bishop & Son Ltd (1982) Retirement Fund • The Roy Bishop & Son Ltd (1982) Retirement Fund • Sheffield Forgemasters Pension Scheme • Sheffield Forgemasters Pension Scheme • The Shipbuilding Industries Pension Scheme - Appledore Shipbuilders Ltd Section • Determination Notices 2006/07 • BBP Engineering Group Limited Pension and Life Assurance Scheme • The Brover Group Retirement Benefits Scheme • The Bugsby Pension Scheme • The Bugsby Pension Scheme • Burall Group Pension Plan • Cheney Pension Scheme • The Courts Pension Scheme • Data Factors Executive Pension Scheme • Derek Walter Thomas • Eagle Picher Hillsdale Limited Pension and Assurance Scheme • EBC Asset Management Pension and Life Assurance Trust • EBC Asset Management Pension and Life Assurance Trust • EBC Asset Management Pension and Life Assurance Trust • Ericsson Employee Benefits Scheme Limited • Ericsson Employee Benefits Scheme • Hewson McElroy Investments Limited Retirement Benefits Scheme • Hewson McElroy Investments Limited Retirement Benefit Scheme • Hewson McElroy Investments Limited Retirement Benefit Scheme • Llandaff Engineering Company Limited Pension and Life Assurance Scheme • Llandaff Engineering Company Limited Pension and Life Assurance Scheme • MJR Associates Pension Fund • The Monymusk Estate Retirement Benefits Scheme • The Monymusk Estate Retirement Benefit Scheme • The Roy Bishop & Son Ltd (1982) Retirement Fund • Sanpark Data Pension Fund • Scheme X • Determination Notices 2007/08 • Blandon PSM Ltd Retirement Benefit Scheme • B.S.E. Genex Company Limited Staff Insurance Scheme • GEC 1972 Plan (Telent) • GEC 1972 Plan (Telent) • Greyfriars Filters Pension Scheme • Holden & Brooke Limited Pension Scheme • Jackson Lloyd (DBM) Limited Group Pension Scheme • The Kenya Local Authorities Superannuation Fund • M4 Data Limited Money Purchase Scheme • National Staff Side Pension Scheme (1972) • Newage Transmissions Pension Plan • The Sea Containers 1983 Pension Scheme • The Sea Containers 1990 Pension Scheme • The Sea Containers 1983 and 1990 Pension Schemes • Determination Notices 2008/09 • The Blagden Industries Pension Scheme and the SunleyTurriff Pension Scheme • The Data General Employee Benefit Plan • The Derfshaw Limited Retirement Benefits Scheme • Farr Group Limited Pension Plan • G P Noble Trustees Limited - Final Notice • The Graphex Limited Pension and Life Assurance Scheme • The Graphex Limited Pension and Life Assurance Scheme • The Harvie Tyre Supplies Limited Retirement Benefits Scheme • Quarters Trustees Limited • The Tartan Company Pension Scheme • Determination Notices 2009/10 • The Basil L Leeder & Sons Limited Pension and Life Assurance Scheme - Final Notice • The Basil L Leeder & Sons Limited Pension and Life Assurance Scheme • DP Dental Laboratory Retirement Benefit Scheme • G P Noble Trustees Limited • The Hugh Mackay Retirement Benefits Scheme • The Hugh Mackay Retirement Benefits Scheme • Protector Lamp Pension Scheme • Quarters Trustees Limited • Refuge Pension Scheme • Determination Notices 2010/11 • Bonas Group Pension Scheme • Dixon Motor Holdings Ltd Final Salary Scheme • The ELCB Staff Pension Scheme • Lehman Brothers Pension Scheme • Lehman Brothers Pension Scheme - Reasons of the Determinations Panel • The Liberal Headquarters 1924 Pension Fund • McNicholas Construction (Holdings) Limited Pension Scheme • Nortel Networks UK Pension Plan • Nortel Networks - Reasons of the Determinations Panel • Prudential Corporate Pensions Trustee Limited • Streamline L G Pension Scheme • Streamline Pension Fund • Scheme X • Scheme X • T & S Heating Limited Retirement Benefits Plan • Determination Notices 2011/12 • Bonas Group Pension Scheme • Bonas Group Pension Scheme - Contribution Notice • The Box Clever Group Pension Scheme • The Box Clever Group Pension Scheme - Reasons for the Determination • Brownberrie; Bucephalus; Cranborne Star; DGK; Grosvenor Parade; LJK Ventures; PPF Management; Queensbury DF; Tallton Place; Lancaster; Portman; The RJS and Woodcroft House Pension Schemes • Brownberrie; Bucephalus; Cranborne Star; DGK; Grosvenor Parade; LJK Ventures; PPF Management; Queensbury DF; Tallton Place; Lancaster; Portman; The RJS and Woodcroft House Pension Schemes - Final Notice • Dalton Power Products Limited Staff & Works Retirement and Death Benefit Scheme • Dalton Retirement and Death Benefit Scheme • The Desmond & Sons Limited 1975 Pension & Life Assurance Scheme • Hollywell Enterprises Pension Scheme - Final Notice • Hollywell Enterprises Pension Scheme • The Hugh Mackay Retirement Benefits Scheme • Directions • Version 1: Directions Issued by the Pensions Regulator Under Section 69(1) of the Pensions Act 2004 • Guidance - Code-related Guidance • Complying with the Duty to Report Breaches of the Law • Internal Controls (replaced) • Internal Controls • Material Detriment Test • Member-nominated Trustees and Member-nominated Directors • The Notifiable Events Framework • Guidance - Detailed Guidance on Pensions Reform • Workplace Pensions Reform - Detailed Guidance (replaced) • Workplace Pensions Reform - Detailed Guidance • Guidance - Other Guidance • Abandonment of Defined Benefit Pension Schemes • Clearance Guidance • Clearance Statements (replaced) • Conflicts of Interest • Contingent Assets (superseded) • Corporate Transactions • Cross-border Schemes • DC Schemes Q&As • Effective Member Communications • Incentive Exercises (replaced) • Inducement Offers (replaced) • Levy and Registration (superseded) • Lump Sum Death Benefits • Lump Sum Death Benefits (replaced) • Member Retirement Options • Monitoring Employer Support • Mortality Assumptions • Multi-employer Schemes and Employer Departures • Multi-employer Schemes and Employer Departures (replaced) • Multi-employer Withdrawal Arrangements (replaced) • Multi-employer Withdrawal Arrangements (Update) (replaced) • Pension Liberation Factsheet • Prohibition of Trustees • Record-keeping • Record-keeping (replaced) • Regulatory Activity • Relations With Advisers • Scheme Funding (superseded) • Selecting a Good Automatic Enrolment Scheme • Scheme Funding and Clearance Case Studies • Scheme Funding FAQs • Stakeholder Pensions • Summary Funding Statements - Guidance on some aspects of summary funding statements (superseded) • Summary Overview of Social and Labour Law Relevant to Pensions in the UK • Technical Queries (superseded) • Transfer Values • Trustee Guidance • Trustee Knowledge and Understanding • Voluntary Employer Engagement in Work Place Contract-based Pension Schemes • Winding Up • Hampton Implementation Review Report • A Hampton Implementation Review Report: A Review Supported by the Better Regulation Executive and National Audit Office • IGG Principles • Principles for Investment Governance of Work-based DC Pension Schemes • Memoranda of Understanding & Other Joint Documents • A Guide on the Regulation of Work Place Contract-Based Pensions • Partnering Agreement Between the Pensions Regulator & the Board of the Pension Protection Fund • Memorandum of Understanding Between the Pensions Regulator and the Board of the Pension Protection Fund • Memorandum of Understanding ('Memorandum') Between the Financial Services Authority ('FSA') and the Pensions Regulator • Memorandum of Understanding between the Department for Work and Pensions, the Pensions Regulator and the Pension Protection Fund • Memorandum of Understanding between the Department for Work and Pensions, the Pensions Regulator and the Pension Protection Fund (replaced) • Memorandum of Understanding between the Department for Work and Pensions, the Pensions Regulator and the Pension Protection Fund(replaced) • Talking to Your Employees About Pensions: Guide for Employers • Talking to Your Employees About Pensions: Guide for Employers (replaced) • Memorandum of Understanding ('Memorandum') Between the UK Actuarial Profession and the Pensions Regulator • Miscellaneous • Draft Key Features: Six Principles for Good Workplace DC • PN11-29: Six Principles for Good Workplace DC • Purple Book • The Purple Book: DB Pensions Universe Risk Profile (2011) • The Purple Book: DB Pensions Universe Risk Profile (2010) • The Purple Book: DB Pensions Universe Risk Profile (2009) • The Purple Book: DB Pensions Universe Risk Profile (2008) • The Purple Book: DB Pensions Universe Risk Profile (2007) • The Purple Book: DB Pensions Universe Risk Profile (2006) • Regulatory Strategy • Delivering Successful Automatic Enrolment: The Pensions Regulator's Approach to the Regulation of Employers and Schemes • Research & Analysis - DC Surveys and Reviews • Survey of DC Pension Scheme Members • DC Update • A Review of Retirement Information for DC Members [tpr rev dc] • 2009: DC Trust: A Presentation of Scheme Return Data • 2010: DC Trust: A Presentation of Scheme Return Data • 2011: DC Trust: A Presentation of Scheme Return Data • Research & Analysis - Other Research Reports • The Occupational Pension Schemes Regulatory Survey 2004 • Scheme Record-Keeping: A Report on the 2011 Scheme Record-Keeping Survey • Research Report: Employers' Awareness, Understanding and Activity Relating to Workplace Pensions Reform, 2011 • Research Report: Employers' Awareness, Understanding and Activity Relating to Workplace Pension Reforms, Autumn 2011 • Research Report: Employers' Awareness, Understanding and Activity Relating to Workplace Pensions Reform, Spring 2012 • Scheme Record-Keeping: A Report on the 2012 Scheme Record Keeping Survey • Research & Analysis - Scheme Funding Analysis • Recovery Plans: an Initial Analysis • Scheme Funding: an Analysis of Recovery Plans and Clearance Applications • Scheme Funding: an Analysis of Recovery Plans • Recovery Plans: Assumptions and Triggers • Recovery Plans: Scheme Funding and Other Security Arrangements • Scheme Funding: Recovery Plans of UK Defined Benefit and Hybrid Schemes • Research & Analysis - Scheme Governance Surveys • Occupational Pension Scheme Governance: A Report on the 2006 Scheme Governance Survey • Occupational Pension Scheme Governance: A Report on the 2007 Scheme Governance Survey • Governance Survey 2008 • Occupational Pension Scheme Governance: A Report on the 2009 Scheme Governance Survey • Occupational Pension Scheme Governance: A Report on the 2011 Scheme Governance Survey • Occupational Pension Scheme Governance: A Report on the 2012 Scheme Governance Survey • S89 Reports • April 2008: GEC 1972 Plan (Telent) - Report under s89 of the Pensions Act 2004 • June 2011: Bonas Group Pension Scheme - Report under s89 of the Pensions Act 2004 • July 2011: Great Lakes UK Limited Pension Plan - Report under s89 of the Pensions Act 2004 • October 2011: Polestar Pension Scheme - Report under s89 of the Pensions Act 2004 • January 2012: Hugh Mackay Retirement Benefits Scheme (Governance Issues Arising from) - Report under s89 of the Pensions Act 2004 • March 2012: The Uniq plc Pension Scheme - Report under s89 of the Pensions Act 2004 • May 2012: British Midland Airways Limited Pension and Life Assurance Scheme (the 'Scheme') • July 2012: GP Noble Trustees Limited ('GPNT') and others • Statements • Alert to Risks in the Economic Downturn • Enabling a Good Member Outcome in DC Pensions • Employer Duty to Consult on Scheme Changes • Employer Related Investments • Enhanced Transfer Value Exercises • Engaged Employers and Informed Retirement Choices - Key to Good Outcomes for Members of Defined Contribution (DC) Pensions • Financial Support Directions and Insolvency • Good Governance - Keeping Pensions Safe • How the Pensions Regulator will Regulate the Funding of Defined Benefits • Identifying your Statutory Employer • Improving Pension Scheme Administration: How NISPI Can Help • Improving Administration Standards • Incentive Exercises • Member Record-Keeping: What Trustees Can Expect From Statutory Auditors • Pension Scheme Funding in the Current Environment • Regulated Apportionment Arrangements (RAAs) and Employer Insolvency • Scenarios for Scheme Funding Plans in the Current Economic Conditions • Scheme Funding and the Employer Covenant • Statement by the Pensions Regulator on the Treatment of Pension Scheme Deficits in Schemes Sponsored by Employers Subject to Price Regulation: Questions and Answers • Statement by the Pensions Regulator on the Treatment of Pension Deficits in Schemes Sponsored by Employers Subject to Price Regulation • Statement to Employers Sponsoring DB Pension Schemes • Statement to Trustees About Current Financial Pressures • The Role of Trustees in DC Schemes • The Consumer Prices Index (CPI) • The Importance of Good Scheme Administration • The Pensions Regulator Statement on Use of Amended Powers Announced Today by the Department for Work and Pensions • The Regulation of Schemes in Wind-up and in a Pension Protection Fund Assessment Period • Understanding and Managing the Risks of Securities Lending • Understanding and Managing Your Hybrid Scheme • Understanding Employer Support for DB schemes • Strategy and Policy • Compliance and Enforcement Policy: For Employers Subject to Automatic Enrolment Duties • Compliance and Enforcement Strategy: For Employers Subject to Automatic Enrolment Duties • Employer Duties: Our Regulatory Approach

  11. Quantity V • J O Walker & Company plc Pension & Life Assurance Scheme • Main Top Hotel and Leisure Limited Retirement Benefit Scheme • Prudential Company Retirement Schemes • The Roy Bishop & Son Ltd (1982) Retirement Fund • The Roy Bishop & Son Ltd (1982) Retirement Fund • Sheffield Forgemasters Pension Scheme • Sheffield Forgemasters Pension Scheme • The Shipbuilding Industries Pension Scheme - Appledore Shipbuilders Ltd Section • Determination Notices 2006/07 • BBP Engineering Group Limited Pension and Life Assurance Scheme • The Brover Group Retirement Benefits Scheme • The Bugsby Pension Scheme • The Bugsby Pension Scheme • Burall Group Pension Plan • Cheney Pension Scheme • The Courts Pension Scheme • Data Factors Executive Pension Scheme • Derek Walter Thomas • Eagle Picher Hillsdale Limited Pension and Assurance Scheme • EBC Asset Management Pension and Life Assurance Trust • EBC Asset Management Pension and Life Assurance Trust • EBC Asset Management Pension and Life Assurance Trust • Ericsson Employee Benefits Scheme Limited • Ericsson Employee Benefits Scheme • Hewson McElroy Investments Limited Retirement Benefits Scheme • Hewson McElroy Investments Limited Retirement Benefit Scheme • Hewson McElroy Investments Limited Retirement Benefit Scheme • Llandaff Engineering Company Limited Pension and Life Assurance Scheme • Llandaff Engineering Company Limited Pension and Life Assurance Scheme • MJR Associates Pension Fund • The Monymusk Estate Retirement Benefits Scheme • The Monymusk Estate Retirement Benefit Scheme • The Roy Bishop & Son Ltd (1982) Retirement Fund • Sanpark Data Pension Fund • Scheme X • Determination Notices 2007/08 • Blandon PSM Ltd Retirement Benefit Scheme • B.S.E. Genex Company Limited Staff Insurance Scheme • GEC 1972 Plan (Telent) • GEC 1972 Plan (Telent) • Greyfriars Filters Pension Scheme • Holden & Brooke Limited Pension Scheme • Jackson Lloyd (DBM) Limited Group Pension Scheme • The Kenya Local Authorities Superannuation Fund • M4 Data Limited Money Purchase Scheme • National Staff Side Pension Scheme (1972) • Newage Transmissions Pension Plan • The Sea Containers 1983 Pension Scheme • The Sea Containers 1990 Pension Scheme • The Sea Containers 1983 and 1990 Pension Schemes • Determination Notices 2008/09 • The Blagden Industries Pension Scheme and the SunleyTurriff Pension Scheme • The Data General Employee Benefit Plan • The Derfshaw Limited Retirement Benefits Scheme • Farr Group Limited Pension Plan • G P Noble Trustees Limited - Final Notice • The Graphex Limited Pension and Life Assurance Scheme • The Graphex Limited Pension and Life Assurance Scheme • The Harvie Tyre Supplies Limited Retirement Benefits Scheme • Quarters Trustees Limited • The Tartan Company Pension Scheme • Determination Notices 2009/10 • The Basil L Leeder & Sons Limited Pension and Life Assurance Scheme - Final Notice • The Basil L Leeder & Sons Limited Pension and Life Assurance Scheme • DP Dental Laboratory Retirement Benefit Scheme • G P Noble Trustees Limited • The Hugh Mackay Retirement Benefits Scheme • The Hugh Mackay Retirement Benefits Scheme • Protector Lamp Pension Scheme • Quarters Trustees Limited • Refuge Pension Scheme • Determination Notices 2010/11 • Bonas Group Pension Scheme • Dixon Motor Holdings Ltd Final Salary Scheme • The ELCB Staff Pension Scheme • Lehman Brothers Pension Scheme • Lehman Brothers Pension Scheme - Reasons of the Determinations Panel • The Liberal Headquarters 1924 Pension Fund • McNicholas Construction (Holdings) Limited Pension Scheme • Nortel Networks UK Pension Plan • Nortel Networks - Reasons of the Determinations Panel • Prudential Corporate Pensions Trustee Limited • Streamline L G Pension Scheme • Streamline Pension Fund • Scheme X • Scheme X • T & S Heating Limited Retirement Benefits Plan • Determination Notices 2011/12 • Bonas Group Pension Scheme • Bonas Group Pension Scheme - Contribution Notice • The Box Clever Group Pension Scheme • The Box Clever Group Pension Scheme - Reasons for the Determination • Brownberrie; Bucephalus; Cranborne Star; DGK; Grosvenor Parade; LJK Ventures; PPF Management; Queensbury DF; Tallton Place; Lancaster; Portman; The RJS and Woodcroft House Pension Schemes • Brownberrie; Bucephalus; Cranborne Star; DGK; Grosvenor Parade; LJK Ventures; PPF Management; Queensbury DF; Tallton Place; Lancaster; Portman; The RJS and Woodcroft House Pension Schemes - Final Notice • Dalton Power Products Limited Staff & Works Retirement and Death Benefit Scheme • Dalton Retirement and Death Benefit Scheme • The Desmond & Sons Limited 1975 Pension & Life Assurance Scheme • Hollywell Enterprises Pension Scheme - Final Notice • Hollywell Enterprises Pension Scheme • The Hugh Mackay Retirement Benefits Scheme • Directions • Version 1: Directions Issued by the Pensions Regulator Under Section 69(1) of the Pensions Act 2004 • Guidance - Code-related Guidance • Complying with the Duty to Report Breaches of the Law • Internal Controls (replaced) • Internal Controls • Material Detriment Test • Member-nominated Trustees and Member-nominated Directors • The Notifiable Events Framework • Guidance - Detailed Guidance on Pensions Reform • Workplace Pensions Reform - Detailed Guidance (replaced) • Workplace Pensions Reform - Detailed Guidance • Guidance - Other Guidance • Abandonment of Defined Benefit Pension Schemes • Clearance Guidance • Clearance Statements (replaced) • Conflicts of Interest • Contingent Assets (superseded) • Corporate Transactions • Cross-border Schemes • DC Schemes Q&As • Effective Member Communications • Incentive Exercises (replaced) • Inducement Offers (replaced) • Levy and Registration (superseded) • Lump Sum Death Benefits • Lump Sum Death Benefits (replaced) • Member Retirement Options • Monitoring Employer Support • Mortality Assumptions • Multi-employer Schemes and Employer Departures • Multi-employer Schemes and Employer Departures (replaced) • Multi-employer Withdrawal Arrangements (replaced) • Multi-employer Withdrawal Arrangements (Update) (replaced) • Pension Liberation Factsheet • Prohibition of Trustees • Record-keeping • Record-keeping (replaced) • Regulatory Activity • Relations With Advisers • Scheme Funding (superseded) • Selecting a Good Automatic Enrolment Scheme • Scheme Funding and Clearance Case Studies • Scheme Funding FAQs • Stakeholder Pensions • Summary Funding Statements - Guidance on some aspects of summary funding statements (superseded) • Summary Overview of Social and Labour Law Relevant to Pensions in the UK • Technical Queries (superseded) • Transfer Values • Trustee Guidance • Trustee Knowledge and Understanding • Voluntary Employer Engagement in Work Place Contract-based Pension Schemes • Winding Up • Hampton Implementation Review Report • A Hampton Implementation Review Report: A Review Supported by the Better Regulation Executive and National Audit Office • IGG Principles • Principles for Investment Governance of Work-based DC Pension Schemes • Memoranda of Understanding & Other Joint Documents • A Guide on the Regulation of Work Place Contract-Based Pensions • Partnering Agreement Between the Pensions Regulator & the Board of the Pension Protection Fund • Memorandum of Understanding Between the Pensions Regulator and the Board of the Pension Protection Fund • Memorandum of Understanding ('Memorandum') Between the Financial Services Authority ('FSA') and the Pensions Regulator • Memorandum of Understanding between the Department for Work and Pensions, the Pensions Regulator and the Pension Protection Fund • Memorandum of Understanding between the Department for Work and Pensions, the Pensions Regulator and the Pension Protection Fund (replaced) • Memorandum of Understanding between the Department for Work and Pensions, the Pensions Regulator and the Pension Protection Fund(replaced) • Talking to Your Employees About Pensions: Guide for Employers • Talking to Your Employees About Pensions: Guide for Employers (replaced) • Memorandum of Understanding ('Memorandum') Between the UK Actuarial Profession and the Pensions Regulator • Miscellaneous • Draft Key Features: Six Principles for Good Workplace DC • PN11-29: Six Principles for Good Workplace DC • Purple Book • The Purple Book: DB Pensions Universe Risk Profile (2011) • The Purple Book: DB Pensions Universe Risk Profile (2010) • The Purple Book: DB Pensions Universe Risk Profile (2009) • The Purple Book: DB Pensions Universe Risk Profile (2008) • The Purple Book: DB Pensions Universe Risk Profile (2007) • The Purple Book: DB Pensions Universe Risk Profile (2006) • Regulatory Strategy • Delivering Successful Automatic Enrolment: The Pensions Regulator's Approach to the Regulation of Employers and Schemes • Research & Analysis - DC Surveys and Reviews • Survey of DC Pension Scheme Members • DC Update • A Review of Retirement Information for DC Members [tpr rev dc] • 2009: DC Trust: A Presentation of Scheme Return Data • 2010: DC Trust: A Presentation of Scheme Return Data • 2011: DC Trust: A Presentation of Scheme Return Data • Research & Analysis - Other Research Reports • The Occupational Pension Schemes Regulatory Survey 2004 • Scheme Record-Keeping: A Report on the 2011 Scheme Record-Keeping Survey • Research Report: Employers' Awareness, Understanding and Activity Relating to Workplace Pensions Reform, 2011 • Research Report: Employers' Awareness, Understanding and Activity Relating to Workplace Pension Reforms, Autumn 2011 • Research Report: Employers' Awareness, Understanding and Activity Relating to Workplace Pensions Reform, Spring 2012 • Scheme Record-Keeping: A Report on the 2012 Scheme Record Keeping Survey • Research & Analysis - Scheme Funding Analysis • Recovery Plans: an Initial Analysis • Scheme Funding: an Analysis of Recovery Plans and Clearance Applications • Scheme Funding: an Analysis of Recovery Plans • Recovery Plans: Assumptions and Triggers • Recovery Plans: Scheme Funding and Other Security Arrangements • Scheme Funding: Recovery Plans of UK Defined Benefit and Hybrid Schemes • Research & Analysis - Scheme Governance Surveys • Occupational Pension Scheme Governance: A Report on the 2006 Scheme Governance Survey • Occupational Pension Scheme Governance: A Report on the 2007 Scheme Governance Survey • Governance Survey 2008 • Occupational Pension Scheme Governance: A Report on the 2009 Scheme Governance Survey

  12. Quantity VI • Occupational Pension Scheme Governance: A Report on the 2011 Scheme Governance Survey • Occupational Pension Scheme Governance: A Report on the 2012 Scheme Governance Survey • S89 Reports • April 2008: GEC 1972 Plan (Telent) - Report under s89 of the Pensions Act 2004 • June 2011: Bonas Group Pension Scheme - Report under s89 of the Pensions Act 2004 • July 2011: Great Lakes UK Limited Pension Plan - Report under s89 of the Pensions Act 2004 • October 2011: Polestar Pension Scheme - Report under s89 of the Pensions Act 2004 • January 2012: Hugh Mackay Retirement Benefits Scheme (Governance Issues Arising from) - Report under s89 of the Pensions Act 2004 • March 2012: The Uniq plc Pension Scheme - Report under s89 of the Pensions Act 2004 • May 2012: British Midland Airways Limited Pension and Life Assurance Scheme (the 'Scheme') • July 2012: GP Noble Trustees Limited ('GPNT') and others • Statements • Alert to Risks in the Economic Downturn • Enabling a Good Member Outcome in DC Pensions • Employer Duty to Consult on Scheme Changes • Employer Related Investments • Enhanced Transfer Value Exercises • Engaged Employers and Informed Retirement Choices - Key to Good Outcomes for Members of Defined Contribution (DC) Pensions • Financial Support Directions and Insolvency • Good Governance - Keeping Pensions Safe • How the Pensions Regulator will Regulate the Funding of Defined Benefits • Identifying your Statutory Employer • Improving Pension Scheme Administration: How NISPI Can Help • Improving Administration Standards • Incentive Exercises • Member Record-Keeping: What Trustees Can Expect From Statutory Auditors • Pension Scheme Funding in the Current Environment • Regulated Apportionment Arrangements (RAAs) and Employer Insolvency • Scenarios for Scheme Funding Plans in the Current Economic Conditions • Scheme Funding and the Employer Covenant • Statement by the Pensions Regulator on the Treatment of Pension Scheme Deficits in Schemes Sponsored by Employers Subject to Price Regulation: Questions and Answers • Statement by the Pensions Regulator on the Treatment of Pension Deficits in Schemes Sponsored by Employers Subject to Price Regulation • Statement to Employers Sponsoring DB Pension Schemes • Statement to Trustees About Current Financial Pressures • The Role of Trustees in DC Schemes • The Consumer Prices Index (CPI) • The Importance of Good Scheme Administration • The Pensions Regulator Statement on Use of Amended Powers Announced Today by the Department for Work and Pensions • The Regulation of Schemes in Wind-up and in a Pension Protection Fund Assessment Period • Understanding and Managing the Risks of Securities Lending • Understanding and Managing Your Hybrid Scheme • Understanding Employer Support for DB schemes • Strategy and Policy • Compliance and Enforcement Policy: For Employers Subject to Automatic Enrolment Duties • Compliance and Enforcement Strategy: For Employers Subject to Automatic Enrolment Duties • Employer Duties: Our Regulatory Approach

  13. SimplificationPensions Act 1995 Pickering Report 2002 67 Restriction on powers to alter schemes (1) This section applies to any power conferred on any person by an occupational pension scheme (other than a public service pension scheme) to modify the scheme. (2) The power cannot be exercised on any occasion in a manner which would or might affect any entitlement, accrued right or pension credit right of any member of the scheme acquired before the power is exercised unless the requirements under subsection (3) are satisfied. (3) Those requirements are that, in respect of the exercise of the power in that manner on that occasion - (a) the trustees have satisfied themselves that - (i) the certification requirements, or (ii) the requirements for consent, are met in respect of that member, and (b) where the power is exercised by a person other than the trustees, the trustees have approved the exercise of the power in that manner on that occasion. (4) In subsection (3) - (a) "the certification requirements" means prescribed requirements for the purpose of securing that no power to which this section applies is exercised in any manner which, in the opinion of an actuary, would adversely affect any member of the scheme (without his consent) in respect of his entitlement, accrued rights or pension credit rights acquired before the power is exercised, and (b) "the consent requirements" means prescribed requirements for the purpose of obtaining the consent of members of a scheme to the exercise of a power to which this section applies. (5) Subsection (2) does not apply to the exercise of a power - (a) for a purpose connected with debits under section 29(1)(a) of the Welfare Reform and Pensions Act 1999, or (b) in a prescribed manner. (6) Where a power to which this section applies may not (apart from this section) be exercised without the consent of any person, regulations may make provision for treating such consent as given in prescribed circumstances. [319 words] In the subsisting rights provisions, each of the following

  14. SimplificationPensions Act 1995 Pensions Act 2004 67 Restriction on powers to alter schemes (1) This section applies to any power conferred on any person by an occupational pension scheme (other than a public service pension scheme) to modify the scheme. (2) The power cannot be exercised on any occasion in a manner which would or might affect any entitlement, accrued right or pension credit right of any member of the scheme acquired before the power is exercised unless the requirements under subsection (3) are satisfied. (3) Those requirements are that, in respect of the exercise of the power in that manner on that occasion - (a) the trustees have satisfied themselves that - (i) the certification requirements, or (ii) the requirements for consent, are met in respect of that member, and (b) where the power is exercised by a person other than the trustees, the trustees have approved the exercise of the power in that manner on that occasion. (4) In subsection (3) - (a) "the certification requirements" means prescribed requirements for the purpose of securing that no power to which this section applies is exercised in any manner which, in the opinion of an actuary, would adversely affect any member of the scheme (without his consent) in respect of his entitlement, accrued rights or pension credit rights acquired before the power is exercised, and (b) "the consent requirements" means prescribed requirements for the purpose of obtaining the consent of members of a scheme to the exercise of a power to which this section applies. (5) Subsection (2) does not apply to the exercise of a power - (a) for a purpose connected with debits under section 29(1)(a) of the Welfare Reform and Pensions Act 1999, or (b) in a prescribed manner. (6) Where a power to which this section applies may not (apart from this section) be exercised without the consent of any person, regulations may make provision for treating such consent as given in prescribed circumstances. [319 words] 67 The subsisting rights provisions (1) The subsisting rights provisions apply to any power conferred on any person by an occupational pension scheme, other than a public service pension scheme, to modify the scheme. (2) Any exercise of such a power to make a regulated modification is voidable in accordance with section 67G unless the following are satisfied in respect of the modification— (a) in the case of each affected member— (i) if the modification is a protected modification, the consent requirements (see section 67B), (ii) if it is not, either the consent requirements or the actuarial equivalence requirements (see section 67C), (b) the trustee approval requirement (see section 67E), and (c) the reporting requirement (see section 67F). (3) The subsisting rights provisions do not apply in relation to the exercise of a power— (a) for a purpose connected with debits under section 29(1) of the Welfare Reform and Pensions Act 1999, or (b) in a prescribed manner. (4) References in this section and sections 67A to 67I to "the subsisting rights provisions" are to this section and those sections. (5) Subsection (6) applies in relation to the exercise of a power to which the subsisting rights provisions apply to make a regulated modification where a member of the scheme dies before the requirements mentioned in subsection (2), so far as they apply in his case, have been complied with in respect of the modification if— (a) before he died he had given his consent to the modification in accordance with section 67B(4)(b), or (b) before he died, or before the trustees of the scheme had become aware that he had died, the trustees had complied with section 67C(4)(a), (b) and (d) in respect of the modification in his case. (6) Any of the requirements mentioned in subsection (2), as it applies in respect of the modification— (a)  which is satisfied in the case of the member, or (b)  which would have been satisfied in his case had he not died before it was satisfied, is to be taken to be satisfied in the case of any survivor of the member in respect of the modification. 67A The subsisting rights provisions: interpretation (1) In the subsisting rights provisions, each of the following

  15. Pensions Act 2004 expressions has the meaning given to it by the following provisions of this section— "regulated modification" "protected modification" "detrimental modification" "affected member" "subsisting right" "scheme rules". (2) "Regulated modification" means a modification which is— (a) a protected modification, or (b) a detrimental modification, or is both. (3) "Protected modification" means a modification of an occupational pension scheme which— (a) on taking effect would or might result in any subsisting right of— (i) a member of the scheme, or (ii) a survivor of a member of the scheme, which is not a right or entitlement to money purchase benefits becoming, or being replaced with, a right or entitlement to money purchase benefits under the scheme rules, (b) would or might result in a reduction in the prevailing rate of any pension in payment under the scheme rules, or (c) is of a prescribed description. For the purposes of paragraph (a), the reference in the definition of "money purchase benefits" in section 181(1) of the Pension Schemes Act 1993 to the widow or widower of a member of an occupational pension scheme is to be read as including any other survivor of the member. (4) "Detrimental modification" means a modification of an occupational pension scheme which on taking effect would or might adversely affect any subsisting right of— (a) any member of the scheme, or (b) any survivor of a member of the scheme. (5) A person is an "affected member"— (a) in relation to a protected modification within paragraph (a) or (b) of subsection (3), if, at the time the modification takes effect, he is— (

  16. Pensions Act 2004 i) a member of the scheme, or (ii) a survivor of a member of the scheme, and, on taking effect, the modification would or might affect any of his subsisting rights as mentioned in that paragraph, (b) in relation to a protected modification within paragraph (c) of that subsection, if he is of a prescribed description, and (c) in relation to a detrimental modification which is not a protected modification if, at the time the modification takes effect, he is— (i) a member of the scheme, or (ii) a survivor of a member of the scheme, and, on taking effect, the modification would or might adversely affect any of his subsisting rights. (6) "Subsisting right" means— (a) in relation to a member of an occupational pension scheme, at any time— (i) any right which at that time has accrued to or in respect of him to future benefits under the scheme rules, or (ii) any other entitlement to benefits which he has at that time, under the scheme rules, and (b)  in relation to the survivor of a member of an occupational pension scheme, at any time, any entitlement to benefits, or right to future benefits, which he has at that time under the scheme rules in respect of the member. For this purpose, "right" includes a pension credit right. (7) "Scheme rules", in relation to a scheme, means— (a) the rules of the scheme, except so far as— (i) paragraph 3 of Schedule 5 to the Social Security Act 1989, (ii) section 129 of the Pension Schemes Act 1993, (iii) section 117 of this Act, or (iv) section 230 of the Pensions Act 2004, overrides them, (b) any provision of any of those Acts which overrides or modifies any of the rules of the scheme by virtue of one of the provisions mentioned in paragraph (a), and (c) any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the

  17. Pensions Act 2004 • requirements of Chapter 1 of Part 4 of the Pension Schemes Act 1993 (preservation of benefit under occupational pension schemes). • (8) For the purposes of this section— • (a) "survivor", in relation to a member of an occupational pension scheme, means a person who— • (i) is the widow or widower of the member, or • (ii) has survived the member and has any entitlement to benefit, or right to future benefits, under the scheme rules in respect of the member, and • (b) a modification would or might adversely affect a person's subsisting right if it would alter the nature or extent of the entitlement or right so that the benefits, or future benefits, to which the entitlement or right relates would or might be less generous. • (9) In the subsisting rights provisions, in relation to— • (a) the exercise of a power to modify an occupational pension scheme to which the subsisting rights provisions apply, or • (b) a modification made, or to be made, in exercise of such a power, • references to "the scheme" are to be read as references to the scheme mentioned in paragraph (a). • 67B The consent requirements • (1) References in the subsisting rights provisions to the consent requirements, in respect of a regulated modification, are to be read in accordance with this section. • (2) The consent requirements apply in the case of an affected member— • (a) if the modification is a protected modification; • (b) if it is not a protected modification, unless the actuarial equivalence requirements apply in his case. • (3) The consent requirements consist of— • (a) the informed consent requirement (see subsection (4)), and • (b) the timing requirement (see subsection (6)). • (4) The informed consent requirement is satisfied in the case of an affected member if before the modification is made— • (a) the trustees have— • (i) given him information in writing adequate to explain the nature of the modification and its effect on him,

  18. Pensions Act 2004 • (ii) notified him in writing that he may make representations to the trustees about the modification, • (iii) afforded him a reasonable opportunity to make such representations, and • (iv) notified him in writing that the consent requirements apply in his case in respect of the modification, and • (b) after the trustees have complied with paragraph (a)(i), (ii) and (iv), the affected member has given his consent in writing to the modification. • (5) The trustees are to be taken to have notified an affected member as mentioned subsection (4)(a)(iv) if they have notified him in writing that— • (a) if he gives his consent to the modification for the purposes of the consent requirements, those requirements apply in his case in respect of the modification, but • (b) otherwise, the actuarial equivalence requirements apply in his case in respect of the modification. • (6) The timing requirement is satisfied in the case of an affected member if the modification takes effect within a reasonable period after the member has given his consent to the modification in accordance with subsection (4)(b). • 67C The actuarial equivalence requirements • (1) References in the subsisting rights provisions to the actuarial equivalence requirements, in respect of a detrimental modification which is not a protected modification, are to be read in accordance with this section and section 67D. • (2) The actuarial equivalence requirements apply in the case of an affected member only if— • (a) the modification is not a protected modification, and • (b)  the trustees of the scheme determine that they are to apply in his case. • (3) The actuarial equivalence requirements consist of— • (a) the information requirement (see subsection (4)), • (b) the actuarial value requirement (see subsection (5)), and • (c) the actuarial equivalence statement requirement (see subsection (6)). • (4) The information requirement is satisfied in the case of an affected member if before the modification is made the trustees have taken all reasonable steps to— • (a) give him information in writing adequate to explain the

  19. Pensions Act 2004 nature of the modification and its effect on him, (b) notify him in writing that he may make representations to the trustees about the modification, (c) afford him a reasonable opportunity to make such representations, and (d) notify him in writing that the actuarial equivalence requirements apply in his case in respect of the modification. (5) The actuarial value requirement is satisfied in the case of an affected member if before the modification is made the trustees have made such arrangements, or taken such steps, as are adequate to secure that actuarial value will be maintained. (6) The actuarial equivalence statement requirement is satisfied in the case of an affected member if the trustees have, within a reasonable period beginning with the date on which the modification takes effect, obtained an actuarial equivalence statement relating to the affected member in respect of the modification. (7) For the purposes of subsection (6) "actuarial equivalence statement" means a statement in writing which— (a) is given by— (i)  the actuary appointed in relation to the scheme under section 47(1)(b), or (ii)  a person of a prescribed description, and (b)  certifies that actuarial value has been maintained. • For the purposes of subsections (5) and (7) as they apply in relation to an affected member, actuarial value is maintained if the actuarial value, immediately after the time at which the modification takes effect, of the affected member's subsisting rights is equal to or greater than the actuarial value of his subsisting rights immediately before that time. 67D The actuarial equivalence requirements: further provisions (1) This section applies for the purposes of section 67C. (2) Where— (a)  the information requirement has been satisfied in the case of an affected member in respect of a proposed modification ("the original modification"), (b)  before the trustees have made a determination, or given their consent, for the purposes of section 67E(1) in relation to the original modification, the original modification has been revised, and (c)  the modification as so revised ("the revised modification") does not differ from the original modification in any material respect,

  20. Pensions Act 2004 the information requirement is to be taken to have been satisfied in relation to the revised modification. (3) The trustees are to be regarded as having taken all reasonable steps to notify an affected member as mentioned in section 67C(4)(d) in respect of a modification if they have taken all reasonable steps to notify him in writing that— (a) if he gives his consent to the modification for the purposes of the consent requirements, those requirements apply in his case in respect of the modification, but (b) otherwise, the actuarial equivalence requirements apply in his case in respect of the modification. (4) Any calculation for the purposes of section 67C of the actuarial value of an affected member's subsisting rights at any time must conform with such requirements as may be prescribed. (5) Requirements prescribed by regulations under subsection (4) may include requirements for any such calculation to be made in accordance with guidance that— (a) is prepared and from time to time revised by a prescribed body, and (b) if the regulations so provide, is approved by the Secretary of State. (6) Nothing in subsections (6) and (7) of section 67C precludes actuarial equivalence statements relating to— (a)  two or more affected members, or (b)  affected members of any particular description, in respect of a modification being given in a single document. 67E The trustee approval requirement (1) For the purposes of section 67(2)(b), the trustee approval requirement is satisfied in relation to the exercise of a power to make a regulated modification if— (a) the trustees of the scheme have determined to exercise the power to make the modification, or (b) if the power is exercised by another person, the trustees have consented to the exercise of the power to make the modification, and the making of the determination, or giving of consent, complies with subsections (2) and (3). (2) The trustees must not make a determination, or give their consent, for the purposes of subsection (1) unless, in the case of each affected member— (a) if the modification is a protected modification, the informed consent requirement is satisfied (within the meaning of section 67B), or (b) if it is not— (i) the informed consent requirement is satisfied, or (ii) the information and actuarial value requirements are satisfied (within the meaning of section 67C), in respect of the modification. (3) The trustees must not make a determination, or give their consent, for the purposes of subsection (1) more than a reasonable period after the first consent given by an affected member under section 67B(4)(b) in respect of the modification was given.

  21. Pensions Act 2004 • 67F The reporting requirement • (1) For the purposes of section 67(2)(c), the reporting requirement is satisfied in relation to the exercise of a power to which the subsisting rights provisions apply to make a regulated modification if the trustees have, in accordance with subsection (2)— • (a) notified each affected member in whose case the consent requirements apply in respect of the modification, and • (b) taken all reasonable steps to notify each affected member in whose case the actuarial equivalence requirements apply in respect of the modification, • that they have made a determination, or given their consent, for the purposes of section 67E(1) in relation to the exercise of the power to make the modification. • (2) The trustees must give (or, where the actuarial equivalence requirements apply, take all reasonable steps to give) the notification— • (a) within a reasonable period beginning with the date of the determination or giving of consent mentioned in subsection (1), and • (b) before the date on which the modification takes effect. • 67G Powers of the Authority: voidable modifications • (1) Subsection (2) applies in relation to a regulated modification made in exercise of a power to which the subsisting rights provisions apply which is voidable by virtue of— • (a) section 67(2), or • (b) section 67H(3). • (2) The Authority may make an order declaring that subsection (6) applies in relation to the regulated modification. • (3) An order under subsection (2) relating to a regulated modification may also declare that subsection (6) applies in relation to— • (a) any other modification of the scheme made by the exercise of the power mentioned in subsection (1), or • (b) the grant of any rights under the scheme (whether by virtue of the attribution of notional periods as pensionable service or otherwise) in connection with the regulated modification. • (4) An order under subsection (2) relating to a regulated modification must specify the affected member or affected members or description of affected members in respect of whom subsection (6) applies ("the specified persons"). • (5) An order under subsection (2) relating to a regulated modification may also— • (a) require the trustees to take, within the time specified in the order, such steps as are so specified for the purpose of giving effect to the order; • (b) declare that subsection (7) applies in relation to anything

  22. Pensions Act 2004 done by the trustees after the time at which the modification would, disregarding the order, have taken effect which— (i) would not have contravened any provision of the scheme rules if the modification had taken effect at that time, but (ii) as a result of the modification being void to any extent by virtue of the order, would (but for that subsection) contravene such a provision. This is without prejudice to section 174(3). (6) Where the Authority make an order declaring that this subsection applies in relation to a modification of a scheme, or the grant of any rights under the scheme, the modification or grant is void to the extent specified in the order, and in respect of the specified persons, as from the time when it would, disregarding the order, have taken effect. (7) Where, by virtue of subsection (5)(b), the Authority make an order under subsection (2) declaring that this subsection applies in relation to anything done by the trustees, that thing is to be taken, for such purposes as are specified in the order, not to have contravened any provision of the trust deed or scheme rules. • An order under subsection (2) relating to a regulated modification, or other modification, of a scheme or the grant of any rights under the scheme may be made before or after the time at which the modification or grant would, disregarding the order, have taken effect. 67H Powers of the Authority to intervene (1) Subsection (2) applies where the Authority have reasonable grounds to believe that a power to which the subsisting rights provisions apply— (a)  will be exercised, or (b)  has been exercised, to make a regulated modification in circumstances where the modification will be voidable by virtue of section 67(2). (2) The Authority may by order— (a) in a case within subsection (1)(a), direct the person on whom the power is conferred not to exercise the power to make the regulated modification; (b) require the trustees to take, within the time specified in the order, such steps as are so specified for the purpose of securing

  23. Pensions Act 2004 that any of the requirements mentioned in section 67(2) is satisfied. (3) A regulated modification made in exercise of a power to which the subsisting rights provisions apply is voidable in accordance with section 67G if— (a) the exercise of the power contravened an order under paragraph (a) of subsection (2), or • the trustees fail to comply with a requirement imposed by an order under paragraph (b) of that subsection relating to any exercise of the power to make the modification. 67I Subsisting rights requirements: civil penalties (1) Subsections (2) and (3) apply where a regulated modification is voidable by virtue of section 67(2). (2) Where the modification was made by the exercise of a power— (a) by the trustees of the scheme, or (b) by any other person in circumstances which do not fall within subsection (3), section 10 applies to any trustee who has failed to take all reasonable steps to secure that the modification is not so voidable. (3) Section 10 applies to any person other than the trustees of the scheme who, without reasonable excuse, exercises a power to make the modification if— (a) the trustees have not given their consent, for the purposes of section 67E(1), to the exercise of the power to make the modification, or (b) in the case of any affected member, the timing requirement is not satisfied (within the meaning of section 67B) in respect of the modification. (4) Where the trustees fail to comply with any requirement imposed, by virtue of subsection (5)(a) of section 67G, by an order under subsection (2) of that section, section 10 applies to any trustee who has failed to take all reasonable steps to secure such compliance. (5) Where a regulated modification is made by the exercise of a power in contravention of an order under section 67H(2)(a)— (a) if the power is exercised by the trustees, section 10 applies to any trustee who has failed to take all reasonable steps to secure that the order was not contravened, (b) section 10 applies to any other person who without reasonable excuse exercises the power in contravention of the order . (6) Where the trustees fail to comply with any requirement specified in an order under section 67H(2)(b), section 10 applies to any trustee who has failed to take all reasonable steps to secure such compliance.".'. [3508 words]

  24. Consequences http://www.pendragon.co.uk/content/

  25. It’s a quiet time, but. . . • DC regulation / CDC • Contracting-out • Auto-enrolment changes • Fees/costs/caps • Lord LawsonSteve Webb • OFT • Law Commission • FCA: SIPPs etc • Small pots • Taxation (maybe) • Annuities

  26. The drivers of change I: Press 8 November 2013 DWP, Reshaping workplace pensions for future generations,  November 2013 , Cm8710

  27. The drivers of change II: MPs • MPs and Ministers • Margaret Hodge and the grandstanders • Making a mark • Number of Ministers (until Webb)

  28. Drivers of change III: Failures • Equitable Life • Maxwell • PP misselling • Maersk • ASW And non failures • Annuities? • Taxation?

  29. Drivers of change IV: Change (!) • Annuities • Competition • Competition Commission / OFT • Kay Commission / Law Commission • End of DB • Improve DC (!)

  30. Drivers of change V: Tax • What is tax advantage of pensions? • Fiscal neutrality • Perceived advantages • VAT • CT • IT • IHT

  31. Not just legislation • Statutes • Statutory instruments But also • Guidance notes • Practice Notes • Consultations • Regulators and regulatory material • Case law • Overseas stuff • FSA/FCA/PRA/NISPI • GAD/EIOPA/DWP/EU • HMT/HMRC/IoA • FASB/ICAEW/SORPS • ECJ/HC/CoA/ET/SC • TPR/PPF/DP/PO/PPFO • ABI/NAPF/LC/FRC • IEP/BAS/IFRIC/LGPC • ISC/OECD/IOPS/PASA/PRAG/BERR/IMA/HoC Select Committees

  32. The regulators The four questions • Why have we got regulators? • What is their purpose? • Are they performing well? • If not, are there alternatives? (tPR/FSA)

  33. Do regulators add value? • History is not encouraging • FSA/FCA • tPR • To support members’ rights • [To preside over death of DB] • To improve DC • To protect PPF

  34. Is there a problem? • Is law simply the price we pay for? • consumer protection • democracy • Is there too much law? • If so, is there an alternative? • Trust • Crime • Contract • Tort • Common sense • The interweb thingy

  35. The effect of over-regulation? • Reduction in • provision • benefits (Allianz) • Increase in • compliance costs • Ineffective • consumer protection • Treasury protection • Unintended consequences

  36. Is there an answer I? • Objectives • Proportionality • Balance • Revenge • Consumer protection • Revenue protection • Controls • Training MPs • Training civil servants • Training regulators

  37. Is there an answer II? • Codes of practice • Parliamentary practice • Personal responsibility • Parliamentary draftsman • Consolidation/code • Holistic policy • Alternatives to law • Changing mindsets

  38. The drive to de-regulate • Pickering Report 2003 • Lewin Report 2007 • Finance Act 2004 • BERR • Red Tape Challenge • Tony Blair: We have already swept away many of the rules and regulations [in relation to pensions] to give people more choice and flexibility over saving IPPR 11 Oct 2004, Tony Blair

  39. The drive to de-regulate • Cost /benefit of auto-enrolment • Cost £9.8B • Benefit £9.8B • Deregulation Bill/Act • Cow-hides on the highway • New powers to have secret hearings Oliver Letwin, Deregulation Bill 2014

  40. What could we do? • Reduce HMRC rules to NAPF recommendations • Reduce consumer rules to EU legislation • Avoid specific law, use general law • Abolish tPR, PPF, PO, TPR, NISPI • Result: • more pension schemes • better pensions (Lord) Nigel Vinson, the proponent of personal pensions: ‘Personal pensions haven’t been invented yet. As soon as they are, they will be just as complicated as occupational pensions.’

  41. What could we do? • MPs Hippocratic oath • Do no harm • Only vote through legislation I have read • Only vote through legislation I understand • Pass legislator’s diploma (special paper: law of unintended consequences) • Do not read Daily Mail • Less is more • Best should not be the enemy of the good

  42. What could we do? • Use • Crime/police/SFO • Tort • Contract • more judges • Cost savings • £2B pa • Outcome • Better for consumers and providers

  43. Benefits • Improved governance • Improved trustees • Improved funding • Better benefits • Lower costs • Higher consumer security • Someone to sue • Someone to blame

  44. Challenges • MPs believe in more law is better law • Regulators believe in regulation • Daily Mail

  45. . . . just on the FCA (1). . . • Fines • Run rate • Reputational outcomes • Success or failure • Macro failures • Personal pensions • PPI • Credit crunch • Equitable Life

  46. . . . just on the FCA (2). . . • S166 reports • The Wells case • Equality of arms • Costs/benefits • The Tidjane Thiam case • Product design • PPI • Costs/benefits

  47. Do-it-yourself regulation. . . • What do we want? • Why do we want it? • How shall we do it?

  48. Questions for debate • Can we have too much regulation? • How do we decide how much is too much? • How do we reduce, given John Humphrey / Jeremy Paxman/Daily Mail/MPs? • How do we get the balance right between risk and protection?

  49. The DC regulatory future • Will DC be any better? • FCA thematic review: the Crimean solution to DC? • Pay for staff (cf tPR) • FCA regulatory tanks • What is the problem that needs solving?

  50. Conclusions • There is too much law • It does damage • There is going to be more • We need codes for regulators and legislators • We need alternatives • Time to say goodbye to regulators? A hill of beans?

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