BULLETIN: Pensions law news, February 2014
The UK Pensions system is not working concludes the Financial Conduct Authority (the FCA) in a report published earlier this month.
Members of personal pension and stakeholder schemes are purchasing annuities from the same provider which they have used when saving for a pension. Many look elsewhere but do not switch. This is despite 80% of members potentially getting a better deal if they were to shop around. At the same time, the FCA concludes that there is virtually no market at all for people with small pension pots of under £5000.
Building on the theme of DC governance covered in our December bulletin, these are areas where we may expect to see some developments in years to come and possibly greater regulation of the annuity market. In the meantime, the first few months of 2014 have seen a number of interesting developments in other areas of the law affecting pensions including:
Same Sex Marriage Regulations published
Trustees and employers should consider the implications under their Scheme documentation and decide whether rule amendments are required.
Equalisation rumbles on in the courts.....
A recent case in the High Court Tadas Vaitkus and others v Dresser-Rand UK Ltd  EWHC 170 (Ch) has considered what happens when a Definitive Deed and Rules containing unequal pension benefits are executed with retrospective effect, when equalisation had previously been brought into effect in line with the terms of the original interim deed.
HMRC confirms approach to deduction of VAT on pension fund management costs
Employers should review their approach in the light of the PPG decision.
If you require further information on any of the issues raised in this bulletin, please contact either me or another member of our Pensions team using the details in the right-hand menu.
We always welcome feedback; if you have any comments or suggestions for future editions of pensions law news, I would be delighted to hear from you.