Hogan Lovells pension group is delighted to send you our November e-newsletter.

In this newsletter you will also find:

• Three pension news items;
• Links to our pension news updates;

PENSION NEWS

PPF contingent assets

It's time to start thinking about recertifying any contingent assets used to reduce your scheme's PPF levy.  This year, contingent assets with a fixed liability cap (or a combination of a fixed and floating cap) must be re-executed on the PPF's updated standard forms in order to count in the calculation of the 2019/20 levy.   The deadlines at the end of March may seem far away, but completing all the necessary paperwork (including, for some, the registration of charges with the Land Registry or obtaining covenant advice) can take longer than may be expected.

For more details, please see our briefing note.

IORP II: new regulations

We now have legislation to implement some (but not yet all) of the new requirements of the latest European occupational pension schemes directive ("IORP II"), which must be transposed into UK law by 13 January 2019.  We are analysing the latest provisions and are preparing standards to help pension trustees comply with their new obligations.

For more details, please see our updated briefing note.

GMPs: equalisation judgment

In a landmark decision which will impact most defined benefit (DB) pension schemes, the High Court held on 26 October 2018 that pension schemes must equalise for the effect of guaranteed minimum pensions (GMPs) providing different benefits for men and women.  The costs and administration involved in doing so will be substantial.

However, pension scheme trustees and sponsoring employers should not feel pressured into trying to equalise immediately.  Getting to this point has taken over 25 years and there are no prizes for first being the first to implement the decision. Analysis and processing of the implications for each individual scheme will take time – for larger schemes probably more than a year.

We suggest you:

• Consider what steps to take now in light of our 8-point GMP Equalisation Plan. 

• Read our more detailed briefing on GMP equalisation.

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