• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About
  • Gowling WLG
  • Legal information
  • Privacy statement
  • Cookie Policy
  • Home
  • About
  • Posts
  • Blogs
    • B2022
    • The IP Blog
    • Public Law & Regulation
    • AI
    • The UPC Blog

LoupedIn

UK Government confirms plans to move minimum pension age to 57

Published on September 9, 2020 by Ian Chapman-Curry

UK Government confirms plans to move minimum pension age to 57

The Week In Pensions provides you with a digest of the most important developments in pensions law and regulation along with highlighting some of the most interesting stories from the pensions industry and national press.

In The Week In Pensions this week:

  • Government confirms plans to increase the minimum pension age to 57 from 2028;
  • PLSA consultation response highlights key concerns regarding Regulator’s proposed “one size fits all” fast track and bespoke approaches; and
  • PDP to publish initial data standards for dashboards by the end of 2020.

And, in the pensions industry and national press:

  • Increased employer contributions likely following McCloud ruling;
  • DC master trust pension pots recover as younger members see returns of 15%; and
  • Australia’s ‘super’ pension system risks being drawn into its culture wars

Pensions legal and regulatory developments

Government confirms plans to increase the minimum pension age to 57 from 2028

John Glen MP, the Economic Secretary to the Treasury, has confirmed the government’s plans to increase the minimum pension age to 57 from 2028. Mr Glen’s gave a written response to a parliamentary question on plans to increase the minimum pension age.

In this, he confirmed that the government’s original plans (as set out in the government’s response to its consultation ‘Freedom and choice in pensions’ (July 2014). This means that the minimum pension age will increase from 55 to 57 from 2028, alongside planned increases in the State Pension age to 67. From then on, the minimum pension age in the tax rules will remain ten years below State Pension age.

More information

  • Click here for the full text of the question and answer on minimum pension ages

PLSA consultation response highlights key concerns regarding Regulator’s proposed “one size fits all” fast track and bespoke approaches

In its recent response to The Pensions Regulator’s consultation on the DB funding code of practice, the Pensions and Lifetime Savings Association (PLSA) has expressed its concerns regarding the impact of the Regulator’s proposed approach on pension schemes.

One of its key concerns is that ‘expecting schemes of all different sizes, covenant strengths and maturity levels to adhere to rigid investment approaches, technical provisions and recovery plans, will be inappropriate for many scheme-specific long-term objectives and may ultimately be detrimental to scheme members’ outcomes.’ As a result, the PLSA is pushing for flexibility in a range of fast track options.

More information

  • Click here for the PLSA’s response to TPR’s consultation on the DB funding code.

PDP to publish initial data standards for dashboards by the end of 2020

Following the closure of its call for input on data standards, the Pensions Dashboards Programme (PDP) has announced its intention to publish an initial version of the data standards by the end of 2020.

In an initial response to its call for input, Richard Smith (Head of Industry Liaison on the PDP), stated that: ‘by the end of the year, we will be publishing the first version of data standards for subsequent user testing. This means that pension schemes and providers can begin to act in earnest.’

More information

  • Click here for the PDP’s statement

Highlights from the pensions industry and national press

Increased employer contributions likely following McCloud ruling

Public sector employer pension contributions are likely to increase to cover the “expensive” implementation of the McCloud ruling, according to Gowling WLG. Pensions Age has picked up the Insight written by Hannah Beacham and Paul Carberry and focused on the suggestion that increased employer contributions could lead to a rise in proposals to change pension scheme provision from employers that find participating in the main public sector schemes or Local Government Pension Scheme (LGPS) less attractive.

More information

  • Click here for the full story from Pensions Age ‘Increased employer contributions likely following McCloud ruling – Gowling’; and
  • Click here for the full text of our Insight ‘What do the McCloud remedies consultations mean for public sector employers and contractors?’

DC master trust pension pots recover as younger members see returns of 15%

Defined contribution (DC) pension savings of younger master trust members rose by an average of 15% during the second quarter of 2020, recovering most of the losses seen in the previous quarter, according to new analysis by Isio.

Isio’s review analysed the performance of a selection of the leading master trusts default strategies, revealing that younger members (around 30 years from retirement) benefited most from the recent market boost, with pot sizes increasing between 10.5% to 19.9% over the second quarter of 2020.

Late-career members (i.e. those with two years until retirement) had also recovered much of their losses from the first quarter of 2020, with an average return over 9%, and longer-term returns averaging 4.3% per annum.

More information

  • Click here for the full story from Pensions Age ‘DC master trust pension pots recover as younger members see returns of 15% – Isio’

Australia’s ‘super’ pension system risks being drawn into its culture wars

Australia’s A$2.8 trillion (£1.56 trillion) superannuation industry is, according to the Financial Times, facing the biggest challenge in its history. Longer life expectancy and persistent low interest rates are putting pressure on retirement schemes the world over.

In Australia, the government has increased the pressure by changing the rules to allow workers to dip into their “super” to help see them through the COVID-19 recession. This has already resulted in approximately A$32 billion (£17.9 billion) being removed from the superannuation system. The system also reported the first fall in net contributions in its near 30-year existence in the second quarter of 2020.

The Australian government has now suggested that it may block a legislated increase in employer pension contributions. These were due to rise from from 9.5% currently to 10% in 2021 and 12% by 2025. Of greater impact for the success of the savings scheme, some are now arguing that superannuation should become voluntary for Australians earning less than A$50,000 to give people more control of their money.

As one of the main inspirations for the UK’s workplace pension reforms and automatic enrolment, these developments will be watched closely in Whitehall.

More information

  • Click here for the full story from the Financial Times ‘Australia’s ‘super’ pension system risks being drawn into its culture wars’

About the author(s)

Photo of Ian Chapman-Curry
Ian Chapman-Curry
See recent posts

Ian is a London-based professional support lawyer (PSL) legal director. Ian is a member of our pensions and combined human resource solutions (CHRS) teams. He works with clients to solve their employment and pensions law issues. Ian maintains a particular focus on 'crossover' issues that benefit from his understanding of both areas of law.

  • Ian Chapman-Curry
    https://loupedin.blog/author/ianchapmancurry/
    The Victorian workhouse revisited - The Week in HR
  • Ian Chapman-Curry
    https://loupedin.blog/author/ianchapmancurry/
    Keeping the purse strings tight - The Week in HR
  • Ian Chapman-Curry
    https://loupedin.blog/author/ianchapmancurry/
    Get on your bike - The Week in HR
  • Ian Chapman-Curry
    https://loupedin.blog/author/ianchapmancurry/
    Return of the boomerang employee - The Week in HR

Ian Chapman-Curry

Ian is a London-based professional support lawyer (PSL) legal director. Ian is a member of our pensions and combined human resource solutions (CHRS) teams. He works with clients to solve their employment and pensions law issues. Ian maintains a particular focus on 'crossover' issues that benefit from his understanding of both areas of law.

Filed Under: News Tagged With: DB funding, Pension dashboards, Pensions, Pensions law, The Week In Pensions

Views expressed in this blog do not necessarily reflect those of Gowling WLG.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Primary Sidebar

Recent Posts

  • MIPIM 2023: Key topics shaping the future of real estate
  • Climate change – New report highlights areas for scaling up action
  • Transferring data out of China? Understand the key points from the Chinese Standard Contractual Clauses

Tags

apprenticeships (5) Artificial Intelligence (AI) (52) Autonomous vehicles (11) b2022 (18) Birmingham 2022 (8) Birmingham 2022 Commonwealth Games (14) brand protection (5) Brexit (23) china (5) Climate change (13) COP26 (11) COP27 (6) Copyright (8) COVID-19 (23) Cyber security (5) Data protection (6) Employment (13) employment law (9) Environment (8) ESG (21) ESG and pensions (9) financial services (5) Intellectual Property (59) IP (9) Life sciences (6) net zero (6) Patents (28) Pensions (41) Pension scams (5) Pension Schemes Act 2021 (11) Pensions dashboards (7) Pensions in 2022 (10) Pensions law (31) Procurement (7) Public Law & Regulation (39) Real Estate (17) Retail (6) sustainability (7) Tech (45) The Week In Pensions (11) Trademarks (13) UK (15) unified patents court (9) UPC (24) Week in HR (8)

Categories

Archives

Gowling WLG is an international law firm comprising the members of Gowling WLG International Limited, an English Company Limited by Guarantee, and their respective affiliates. Each member and affiliate is an autonomous and independent entity. Gowling WLG International Limited promotes, facilitates and co-ordinates the activities of its members but does not itself provide services to clients. Our structure is explained in more detail on our Legal Information page.

Footer

LoupedIn is the Official Gowling WLG Blog. Gowling WLG is an international law firm comprising the members of Gowling WLG International Limited, an English Company Limited by Guarantee, and their respective affiliates. Each member and affiliate is an autonomous and independent entity. Gowling WLG International Limited promotes, facilitates and co-ordinates the activities of its members but does not itself provide services to clients. Our structure is explained in more detail on our Legal Information page.

  • Home
  • About
  • Gowling WLG
  • Legal information
  • Privacy statement
  • Cookie Policy

© 2023 Gowling WLG

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT