http://www.watsonwyatt.com Latest Watson Wyatt articles from Pensions News Flash, Pensions News Focus and Pensions News Filter en-us Copyright 2010 Watson Wyatt Worldwide http://backend.userland.com/rss091 3/11/2010 1:02:46 PM 20 Auto-enrolment will be phased in but despite some Government concessions administrative complexity remains.http://www.watsonwyatt.com/search/parser.asp?ID=22588The DWP’s proposed easements will help in some cases but the proposed conditions to be satisfied will mean that the existing alternatives to a ‘normal’ employer debt may be preferable in some circumstances.http://www.watsonwyatt.com/search/parser.asp?ID=22589The Board of the PPF aims to help the most vulnerable schemes but well-funded schemes are likely to have to pay more.http://www.watsonwyatt.com/search/parser.asp?ID=22590Default retirement age (DRA) of 65 does not breach European lawhttp://www.watsonwyatt.com/search/parser.asp?ID=22591The Personal Accounts Delivery Authority and the Board of the Pension Protection Fund have recently published responses to consultations, in which they express a willingness to listen to ‘stakeholder’ concerns. By contrast, the Government has pressed ahead with its ‘anti-forestalling’ measures largely unchanged, despite a tidal wave of condemnation.http://www.watsonwyatt.com/search/parser.asp?ID=22284A last-minute concession on 'anti-forestalling' was included in Finance Bill 2009 before it was enacted.http://www.watsonwyatt.com/search/parser.asp?ID=22027The Board of the Pension Protection Fund has published an update to its consultation on proposed changes to the levy calculation.http://www.watsonwyatt.com/search/parser.asp?ID=22029The Personal Accounts Delivery Authority has published a summary of responses to its consultation paper on how benefi ts can be taken at retirement.http://www.watsonwyatt.com/search/parser.asp?ID=22030A summary of other developments relating to pensions.http://www.watsonwyatt.com/search/parser.asp?ID=22031Pension News Filter - Issue 48http://www.watsonwyatt.com/search/parser.asp?ID=22587As uncertainty and anxiety prevail, at least in some quarters, following the Budget announcement restricting tax relief for ‘high-income’ pension scheme members, at the other end of the scale HM Revenue & Customs tries to help schemes deal sensibly with small pension pots and payments made in error.http://www.watsonwyatt.com/search/parser.asp?ID=21318HM Revenue & Customs has made several welcome changes to its proposals for scheme-specific trivial commutation, but its decision to restrict such lump sums to £2,000 will limit the extent to which schemes can cash out small pensions.http://www.watsonwyatt.com/search/parser.asp?ID=21319The Pensions Regulator warns of the need to be vigilant in tough economic times, but reaffirms its view that the current funding regime is flexible enough to cope.http://www.watsonwyatt.com/search/parser.asp?ID=21321The latest round of consultations on the design of the PA scheme demonstrates the intention not to compete with existing pension provision — with a limit on contributions and a general ban on transfers.http://www.watsonwyatt.com/search/parser.asp?ID=21322News roundabouthttp://www.watsonwyatt.com/search/parser.asp?ID=21323The Government struggles to reconcile its desires to minimise the administrative burden on employers and to maximise workplace pension saving. http://www.watsonwyatt.com/search/parser.asp?ID=20946The Government takes its first steps towards ‘principles-based’ legislation. But is it going far enough? http://www.watsonwyatt.com/search/parser.asp?ID=20947Uncertainty over the requirements of the EU Pensions Directive leads the Government to reconsider its self-investment proposals.http://www.watsonwyatt.com/search/parser.asp?ID=20948Compulsory retirement age On 5 March 2009, the European Court of Justice (ECJ) ruled on Heyday’s challenge that the UK’s default retirement age of 65 contravenes the EU Directive on Equal Treatment in Employment. http://www.watsonwyatt.com/search/parser.asp?ID=20949The Government’s promised overhaul of the existing disclosure regime for work-based pensions is long overdue. However, the prospects for signifi cant deregulation appear limited, given the Government’s desire to introduce detailed administrative procedures for automatic enrolment and opting out under the 2012 regime.http://www.watsonwyatt.com/search/parser.asp?ID=20950The Pensions Regulator welcomes the trend to stronger assumptions and — prior to the market falls — improved levels of fundinghttp://www.watsonwyatt.com/search/parser.asp?ID=20589The Government proposes to remove an unintended barrier to bulk transfers without consent. But how does this ‘clarification’ affect the legality of bulk transfers since 1997?http://www.watsonwyatt.com/search/parser.asp?ID=20593The DWP seeks evidence to ensure that its proposed exemption for flexible retirement provision is both necessary and appropriate.http://www.watsonwyatt.com/search/parser.asp?ID=20594The Personal Accounts Delivery Authority struggles with the difficult design issues surrounding small pension pots.http://www.watsonwyatt.com/search/parser.asp?ID=20595News roundabouthttp://www.watsonwyatt.com/search/parser.asp?ID=20596The 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=19173