Roderick Ramage

list of articles on pension law topics


disclaimer

None of these articles or precedents is advice to any person and none of them may be taken as a definitive statement of the law in general or in any particular case. The author does not accept any responsibility for anything that any person does or does not do as a result of reading them.


 

 

contents

 

(for a subject index, see below)

 

54

true and fair view or as PDF

 

A challenge to the way in which defined benefit pension schemes are shown in company’s accounts, questioning whether the present accounting standards (FRS 102) give a true and fair view and suggesting that the legal arguments supporting the meaning of true and fair in the present accounting standards stretches the interpretation of case law to or beyond the limit.

 

first published in the New Law Journal on 27 October 2017 and, a fortnight later, posted on this website

 

54a

counsels’ opinions about the true and fair view in accounts

 

53

employer-related and other regulated investments or as PDF

 

A summary of the not wholly consistent restrictions on pension investments imposed by pension and tax legislation, particularly employer-related investments and loans, residential property and tangible moveable assets, and the relative freedom of investment available to employer-financed retirement benefits schemes.  The first (HTML) version contains an additional short note about borrowing by pensions schemes.

 

1st published 20/21 June 2016 (distribution to professional contacts)

 

52

life assurance and automatic enrolment might be bad for you or as PDF

 

The is an expanded version of article 51.

 

1st published in New Law Journal on 13 January 2017

 

51

life assurance and automatic enrolment might be bad for you or as PDF

 

A decent pension fund and a generous death in service lump sum benefit might together exceed £1m, which from 6 April 2016 is the amount of the lifetime allowance, resulting in a tax charge on the excess, even for the moderately well paid employee.

 

1st published 31 December 2014 (distribution to professional contacts)

 

50

automatic enrolment, some more practical points or as PDF

 

Some of these notes arose out of questions asked by clients, who from time to time raise issues that, when asked, appear to be obvious.  Others touch on points on which the law and practice to not match perfectly with each other.

Previous practical points are in article 44.

 

1st published 31 December 2016 (distribution to professional contacts)

 

49

non-material detriments final salary schemes or as PDF

 

The pensions in common with other regulators has a tendency, but solely in the interests of pension scheme members, to impose the law as it wold like it to be rather than what it actually is.   Contrary to what the Regulator would have trustees and employers believe there not much in practice that can be done if a pension scheme suffers a detriment that is not material.

 

1st published 31 December 2014 (distribution to professional contacts)

 

48

death in service schemes or as PDF

 

Death in service benefits in an occupational scheme do not transfer under TUPE but similar benefit’s in a stand-alone scheme do transfer with the employees.  These and other characteristics and death in service for the high paid insurance benefits for the highly are summarised here.

 

1st published 31 December 2015 (distribution to professional contacts)

 

 

47

flexi-access, money purchase and contracting-out or as PDF

 

The three main topics here are the flexible access to drawdown promised in the Budget 2014 (with the increased scope for trivial commutation), the impact of the new definition of money purchase resulting in some occupational DC schemes having DB benefits and the ned to plan for he abolition of the State second pension and contracting out in 2016.

 

1st published 31 December 2014 (distribution to professional contacts)

 

46

corporate finance transaction or as PDF

 

This is a short overview of pensions in share and asset business purchases and public sector service transfers, to show that even where there is no DB deficit there can be pension traps for the unwary.  Short compared with the 2002 article (16, last updated in 2006).

 

1st published 31 December 2014 (distribution to professional contacts)

 

 

45

age discrimination and pensions

 

A summary of the main impact of the age discrimination provisions in the Equality Act 2010 and regulation made under it on both occupational and personal pension schemes.

Supersedes article 21 of 28/12/06

 

1st published 31 December 2013 (distribution to professional contacts)

 

 

44

autoenrolment Qs & As

 

Supplementing articles 22, 28, 29 and 40, this article contains a few of the questions asked by employers and suggested answers.

 

1st published 31 December 2013 (distribution to professional contacts)

 

 

43

new Fair Deal no Fair Deal

 

On the one hand the government proposes changes to Fair Deal, including providing for transferring employees to remain in their public sector schemes and removing the transferee’s obligation to provide a broadly comparable scheme.  On the other some local authorities are arguing that Fair Deal does not apply to permanent transfers of services.

 

1st published 1 January 2013 (distribution to professional contacts)

 

 

42

bankruptcy and pensions

 

Supplementing articles 39 and 41, this article outlines the effect of bankruptcy on a person’s pension and the powers of the trustees in bankruptcy.

 

1st published 1 January 2013 (distribution to professional contacts)

 

Superseded by the revisions to article 41.

 

 

41

the creditor and the bankrupt’s pension

 

This articles expands the note in article 39 below.

 

1st published in New Law Journal on 14 September 2012

 

Revised on 20 November 2016

 

40

autoenrolment

 

This note supersedes articles 29 and 30 below.

A summary of the main aspects of the automatic enrolment of jobholders into pension schemes. 

 

1st posted on this site 16 June 2012

 

39

the creditor and the bankrupt’s pension – short note

 

Raithatha v Williamson (judgement 4 April 2012, which increases the opportunity for creditors to claim against a bankrupt’s pension.  The trustee in bankruptcy may now seek an income payment order in respect of not only pensions and other benefits in payment but the bankrupt’s entitlements, even though he has not started to draw them.

 

1st posted on this site 7 April 2012

 

superseded by the revisions to article 41.

 

38

Multi-employer schemes and the pensions debt – 2012 update

 

This note supersedes article 31 below

Note about the s75 debt on an employer ceasing to participate in a pension scheme and the two exemptions added by the 2010 regulation to the possibility of making an apportionment or a withdrawal arrangement to reduce the debt payable immediately or (added from 27 January 2012 by the 2011 regulations) apportioning the employer’s liabilities without triggering a pension debt.

 

1st posted on this site 30 March 2012

 

37

making sure you (don’t) get your pension

 

A slightly expanded version of article 36.

 

1st published Procurement & Outsourcing Journal March/April 2012

 

36

TUPE, pensions and contracting-out

 

Explanation that some pension rights on TUPE transactions may be altered only through ACAS conciliation or a compromise agreement under s203 of the Employment Rights Act 1986, while others are free from that restriction.

 

1st published 13 January 2012 (New Law Journal)

 

35

TUPE and pensions

 

Review of the various pension consequences of a TUPE transfer.  This is not new law, but draws together matters discussed in articles 12, 20 and 24.

 

1st published 1 January 2012 (distribution to professional contacts)

 

34

now we are 75

 

Summary of the so-called end of annuitisation at age 75 by the Finance Act 2011.

 

1st published 1 January 2012 (distribution to professional contacts)

 

33

pensions, tax relief and annuities

 

Summary of tax relief for individuals from A-Day via Labour’s proposals and anti-forestalling to the Coalition’s £50k annual allowance and first thoughts on the forthcoming removal of compulsory annuitisation.

 

1st published 30 December 2010 (distribution to professional contacts)

 

32

FRS 17 & IAS 19 – Who cares about pension scheme deficits

(slightly) shorter version

 

The accounting standards are in practice obligatory, but do not show the information that companies, those dealing with them and pension scheme members need to know and therefore, to that extent, do not show a “true and fair” view of a company’s finances.

 

1st posted on this site 26 September 2010 (not previously published)

 

shorter version published 30 December 2009 (distribution to professional contacts)

 

31

Multi-employer schemes and the pensions debt – 2010 update

 

This note supersedes article 25 below and is superseded by article 38 above

Note about the s75 debt on an employer ceasing to participate in a pension scheme and the two exemptions added by the 2010 regulation to the possibility of making an apportionment or a withdrawal arrangement to reduce the debt payable immediately.

 

1st posted on this site 12 May 2010

 

30

employers – telling employees about pensions

 

Employment law requires some (but not much) information to be given to employees about pensions, but the grey area is about how much it is prudent to tell or advise and the extent of restrictions on advice under the Financial Services legislation.

 

1st published 30 December 2009 (distribution to professional contacts)

 

29

pensions for all – automatic enrolment

 

The Pensions Act 2008 provides for the introduction of auto-enrolment into pension schemes in 2012.  This article summarises the concept of auto-enrolment, how it will apply and the requirements for an automatic enrolment scheme and contains a check list of points for employers to consider in advance preparation.

 

1st published Workplace Law Magazine for February 2009 Issue 44

updated and republished 30 December 2009 (distribution to professional contacts)

See updated note above at 40 of 16/06/12.

 

28

Pensions Act 2008

 

An outline of two of the main topics in this act, automatic enrolment of jobholders into pension schemes and enhanced powers of the Pensions Regulator to deal with the so-called moral hazards first legislated against in the Pensions Act 2004 (see item 13 below).

 

1st published 30 December 2008 (distribution to professional contacts)

See updated note above at 40 of 16/06/12.

 

27

consultation on changing pension schemes

 

Summary of the obligation to consult under Pensions Act 2004 s259 before changes are made to occupational and personal pension schemes with a brief description of the changes for which consultation if required and the procedure to be followed..

 

1st published 30 December 2008 (distribution to professional contacts) – updated 14 July 2016

 

26

24-hour retirement – NHS pension Scheme

 

The NHS Pension Scheme permits members to retire and return to work if they retire for not less that 24 hours and in the next month do not work more than 16 hours a week in NHS employment.  There is legislative authority for the first month/16 hours rule but none for the 24 hour rule.

 

1st published 18 October 2008  (New Law Journal)

 

25

Multi-employer schemes and the pensions debt – 2008 update

 

This note supersedes article 14 below.

Note about the s75 debt on an employer ceasing to participate in a pension scheme and the possibility of making an apportionment or a withdrawal arrangement to reduce the debt payable immediately.

 

1st posted on this site 10 October 2008

 

24

Pensions for transferring employees on public sector outsourcing

 

The 2007 Directions give statutory force to provision to protect the pension rights of employees who are transferred by TUPE to the private sector as a result of public sector outsourcing (by best value authorities).  Previously these rights have been protected by the Fair Deal for employees guidance, which did not have statutory force.  See also article 35.

 

1st published 31 December 2007 (distribution to professional contacts)

 

23

Multi-employer schemes – proposed new regulations

 

The present arrangements (see 25 above) to trigger and deal with debts on the employer on an employer in a multi-employer scheme are to be revised, but evidently the drafting has been harder than the DWP anticipated.

 

1st published 31 December 2007 (distribution to professional contacts)

 

22

Pensions Act 2007 and Pensions Bill 2007

 

A summary of the main features of the Pensions Act 2007,  and the bill intended to become the Pensions Act 2008, much of which, notably auto-enrolment of jobholders into pension schemes and the establishment of personal accounts, is expected to come into force in 2012.  See also update, article 28.

 

1st published 31 December 2007 (distribution to professional contacts)

 

21

Age discrimination and pensions

 

A summary of the main impact of the age equality regulations on both occupational and personal pension schemes

 

1st published 28 December 2006 (distribution to professional contacts)

 

20

TUPE and pensions

 

An update on the effect of the Pensions Act 2004 dealing with (1) what pension a transferee employer must provide and (2) the likelihood that the right to belong to stand-alone life assurance schemes now pass under TUPE.  This is a shorter version of the article below (article 12) on the same topic.  See also article 35.

 

1st published 28 December 2006 (distribution to professional contacts)

 

19

Deeds and rules after A-Day – longer version

shorter (1 page) version

 

A summary of the main alterations which are likely to be needed to pension scheme trust deeds and rules to reflect changes to the tax system on A-Day (6 April 2006) and other changes made mostly by the Pensions Act 2004.  This is a draft because not all relevant regulations have been published and pension practitioners are still working out what needs to be done.

 

1st published 6 February 2006 (distribution to professional contacts), revised 10 March 2006

 

18

Money purchase – trust or contract based pension schemes

 

A comparison of the two types with a recommendation that an employer establishing a money purchase scheme should use a contract based scheme.

 

1st published 30 December 2005 (distribution to professional contacts)

 

17

Reporting and whistleblowing under the Pensions Act 2004 – short

The hazards of pension disclosure – longer version

 

First a summary of matters that employers and trustees are required to report to the Pensions Regulator and secondly the circumstances in which a solicitor is required to blow the whistle.

 

1st published (short) 30 December 2005 (distribution to professional contacts)

 

1st published (long) 20 January 2005 (New Law Journal)

 

16

Pensions in corporate finance transactions

 

An analysis of the permutations of seller’s and buyer’s pension arrangements and their impact on sales of shares or business assets

 

1st published 1 January 2002 (distribution to professional contacts)

revised 1 January 2006

 

15

Conflicts  of interest between pension scheme trustees and directors of the sponsoring company

 

This is a draft and has not been published but if any reader has a view on the subject his or her comments will be very welcome and might lead t an article for publication.

 

1st published 13 September 2005.  Confidential information clause added 15 August 2015

 

14

Multi-employer pension schemes

 

NB This is superseded by article 25 above.

Note about the increased s75 debt on an employer ceasing to participate in a pension scheme and the possibility of making a withdrawal arrangement to reduce the debt payable immediately.

 

1st published 2 September 2005 (distribution to professional contacts)

 

13

Pensions Act 2004 – “Moral Hazard”

 

Description of the provisions for contributions notices, financial support orders and restoration orders

 

1st published 2 March 2005 (distribution to professional contacts)

 

see also item 28 above

 

12

TUPE after the Pensions Act 2004

 

Summary of the requirement for a transferee to provide an alternative to the transferor’s occupational pension scheme.  See also article 35.

 

1st published 10 January 2005 (New Law Journal), revised 4 April and 18 November 2006

 

11

Pensions Act 2004

 

Short summary of a few topics of practical interest

 

1st published 29 December 2004 (distribution to professional contacts)

 

10

Sellers’ Pension Schemes

 

A note of the risk that control the seller’s own pension scheme may pass to the buyer on the sale of a company

 

1st published 29 December 2004 (distribution to professional contacts) and slightly revised on 24 May 2016

 

9

“moral hazard” clauses in the Pensions Bill 2004

 

First thoughts on the possible impact of the contribution notice and financial support direction provisions in the bill or corporate finance transactions.

 

1st published 2 July 2004 (New Law Journal) –updated 10 July 2004, superseded 2 March 2005

 

8

new pension limits – pre A-Day action

 

A brief note summarising the main points of the government’s proposed £1.4m lifetime limit and what advance actions might be taken.

NB  Substantially superseded by “Deeds and rules after A-Day 04/02/06

 

1st published 6 January 2004 (distribution to professional contacts) updated May 2004

 

7

Closing pension schemes – some hazards

 

A brief note showing that closing a scheme can lead to it being wound up and how timing the MFR calculation may maximise of debt on the employer.

 

1st published 27 December 2002 (distribution to professional contacts) – revised 2 July 2003, New Law Journal 1 August 2003

 

6

TUPE & Pensions

 

Letter explaining that the ECJ decision in the Beckmann case limits the exemptions of occupational pension schemes from TUPE, revised following the Martin case.

 

1st published 17 June 2002 (distribution to professional contacts) – revised 3 December 2003

 

5

Pensions and maternity leave

 

A brief note about the employer’s and employee’s pension contributions during maternity leave

 

1st published 1 January 2002 (distribution to professional contacts)

 

4

Pensions after business acquisitions

 

A brief note introducing issues about participation in the sellers scheme and the risks if the scheme is in deficit

 

1st published 1 January 2002 (distribution to professional contacts)

 

3

Stakeholder Pensions

 

A summary of the basic principles of stakeholder pensions and a draft letter from an advisor to business clients

 

1st published 1 January 2002 (distribution to professional contacts)

 

2

Pension scheme disputes resolution procedures

 

Precedents based on the requirements of the Pensions Act 1995 and brief notes.

 

1st published 4 April 1997 (New Law Journal)

 

1

Appointment of professional advisors to a pension scheme

 

Precedent based on the requirements of the Pensions Act 1995 and brief notes.

 

1st published 4 April 1997 (New Law Journal)

 

index of topics

 

 

 

 

 

topic

(for digests and links see contents list below)

article

date

A-Day

19

06/02/06

revised 10/03/06

 

11

29/12/04

 

8

06/01/04

autoenrolment

50

31/12/16

44

31/12/13

40

16.06.12

 

29

30/12/09

 

28

30/12/08

 

22

31/12/07

   (on abolition of contracting-out)

47

31/12/14

bankruptcy

42

01/01/12

 

41

14/09/12

 

39

07/04/12

closing for accrual

7

27/12/02

revised 02/07/03

conflicts of interest

15

13/09/05

contracting out (abolition of)

47

31/12/14

corporate finance

(general)

16

01/01/02

revised 01/01/06

 

(seller’s own scheme)

10

29/12/04

 

(after completion)

4

01/01/02

 

(updated summary)

46

31/12/14

employees

(information)

30

30/12/10

 

(consultation)

27

30/12/08

updated 27/04/10

 

(DIS schemes)

48

31/12/15

 

(age discrimination)

45

31/12/13

 

 

21

28/12/06

 

(maternity leave)

5

01/01/02

 

(dispute resolution)

2

04/04/97

detriments and funding

49

31/12/15

FRS 17 & IAS 19

32

26/09/10 &

30/12/10

investments, employer-related and regulated

53

19/06/17

money purchase

47

31/12/14

moral hazard

28

30/12/08

 

13

02/03/05

 

9

02/07/04

updated 10/07/04

multi-employer schemes

38

30/03/12

 

31

12/05/10

 

25

10/10/08

 

23

31/12/07

 

14

02/09/05

NHS 24-hour retirement

26

18/10/08

notifiable events

17

30/01/05 (long)

30/12/05 (short)

professional advisers

1

04/04/97

public sector outsourcing

43

01/01/12

 

37

April/May 2012

 

36

13/04/12

 

24

31/12/07

stakeholder

3

01/01/02

revised 01/01/13

tax and budgets (2010)

34

01/01/12

   (end of annuitisation at 75, 2011)

33

30/12/10

   (flexible access, small pots, budget 2014)

47

31/12/14

      (lifetime allowance and death in service benefits and risks of losing protection)

51

31/12/16

trust or contract

18

30/12/05

TUPE

36

13/04/12

 

35

01/01/12

 

20

28/12/06

 

12

10/01/05

revised 18/11/06

 

6

17/07/02

revised 03/12/03

 

 

 

 

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