PENSION ADMINISTRATION TECHNICAL HELP
PATHways 161
Highlighting pensions news and legislation that has
particular relevance to what we do in pension administration
In this edition of PATHways, we cover:
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The Pensions Ombudsman – operating model review
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PLSA blog series on pensions priorities for the next Government
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PASA new and updated guidance:
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Data Presence vs Accuracy
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Master trust transitions guidance
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SPP guide to ESG requirements for trustees
Steve Marks contributed to the writing of this newsletter.
The Pensions Ombudsman – operating model review
Following on from a blog by Chief Operating Officer Robert Loughlin in May, the Pensions Ombudsman, Dominic Harris,
has published a blog providing more information on one of the three priority areas, on upcoming changes in relation to
how the Pensions Ombudsman (TPO), as an organisation, will interact with schemes’ own complaint processes.
In a change to when TPO will accept complaints, going forward, TPO will be requiring complainants to exhaust their
occupational pension scheme’s internal dispute resolution procedure before it will consider investigating a complaint.
The volunteer advisers who assist TPO will continue to offer impartial support to complainants prior to or during their
internal resolution process with a focus on vulnerable members and cases which are time-critical or where the risk of
financial harm is high. It is anticipated that this change will be implemented by autumn this year.
In addition, TPO has published a factsheet, which includes some suggested wording that schemes can use to signpost
members to TPO. For example, in the final response to a member’s dispute or on a scheme’s website or other member
material.
Published under the heading ‘First 100 days of Government’ these blogs include:
- help savers navigate choices at retirement – calls for the introduction of a legal requirement on trustees to offer decumulation support and guidance for savers, to support their members at the point of retirement with suitable products underpinned by minimum standards;
- support adequate pension saving – calls for an extension to automatic enrolment to allow saving from the first pound of earnings and from age 18, and to bring workers currently excluded from automatic enrolment (for example, some ‘gig economy’ workers) into the regime;
- support well run DB schemes – calls to allow DB funds with long investment time horizons to take more investment risk, where appropriate, and legislate for the introduction of ‘Superfunds’ with appropriate member protections; and
- helping bridge the pensions and growth gap – calls for the encouragement of investment in the UK economy by continuing the work to identify a pipeline of investible opportunities which will both support UK growth and achieve the right risk-return and cost characteristics needed, and to introduce fiscal incentives to make such investments comparatively more attractive.
PASA new and updated guidance
The Pensions Administration Standards Association (PASA) has published new and updated guidance during June 2024 in several of the areas its working groups cover.
Data Presence vs Accuracy
The PASA Data Working Group continues to produce content regularly and has published new guidance on ‘Data Presence vs Accuracy’. The main part of the guidance focuses on what trustees can do to improve data accuracy, suggesting trustees conduct an audit of data quality to identify potential issues in their data and areas of weakness, and on reviewing the data accuracy, carry out data remediation work as necessary. The guidance also suggests that consideration is given to ongoing monitoring on a periodic basis to help ‘future proof’ data accuracy.
Master trust transitions guidance
The PASA Master Trust Working Group has published updated guidance on master trust transitions following on from the original version issued in November 2019.
The updated guidance accounts for developments in the master trust space in the intervening years and is designed for situations involving transitions of savers to and from master trusts, focusing on the two most common scenarios:
- master trust to master trust; and
- single employer trust to master trust.
As well as industry developments, other topics covered include transition planning and suggested project governance, and communications.
SPP guide to ESG requirements for trustees
The Society of Pension Professionals (SPP) has published a guide for trustees on environmental, social and governance (ESG) matters, which offers some practical suggestions for how trustees might engage with asset managers on these issues.
The guide looks to provide an outline of the various regulatory ESG disclosure requirements for trustees, information on ESG obligations for asset managers, and a summary of the information that trustees will need from their asset managers presented in checklist format which includes links to additional resources.
The guide also includes information about the role of an investment consultant, with a couple of case studies of how certain activities were supported by investment consultants.
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