Case Law
J.M. Kamau Limited v The Pensions Regulator – service of documents does not require collaboration or reciprocal action by the recipient if it is received at 'the proper address'
This case concerned penalties that were issued by TPR on the appellant for failing to complete its Re-Declaration of Compliance by the relevant statutory deadline. In appealing the penalties, the appellant contended that he did not receive the notices due to lack of access to the business address during the Covid-19 lockdown and subsequent office relocation and provided evidence that mail was sometimes mis-delivered to a similar address nearby .
The court considered that the case turned on interpretation of statutory provisions including in particular section 303 of the Pensions Act 2004 which deals with the 'proper address' for service of a notice from The Pensions Regulator and noted there is nothing in the statutory provisions which leads to the conclusion that service is only effected with the collaboration, or some reciprocal action, by the intended recipient if it is received at 'the proper address'.
The Judge found that:
- The Pensions Regulator's automated system for issuing notices was found to be reliable and robust.
- The evidence provided by the appellant regarding non-receipt and mis-delivery was insufficient to rebut the presumption of receipt.
- The appellant's request for review was made outside the statutory timeframe, and thus the Tribunal lacked jurisdiction and on this basis the case was struck out.
New Law
The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025
Coming into force on 24 April 2025 these Regulations make provision about the tax treatment of unauthorised payments made under public service pension schemes in connection with the Public Service Pensions and Judicial Offices Act 2022 and make provision consequential to the abolition of the lifetime allowance.
News
TPR Annual Funding Statement
Key messages from the annual funding statement for 2025 include the following:
- Most schemes continue to see positive funding levels, with TPR estimates as of 31 December 2024 showing around:
- 85% of schemes in surplus on a Technical Provisions (TPs) basis
- 76% of schemes in surplus on a The Pensions Regulator (TPR) derived low dependency basis
- 54% of schemes in surplus on a buyout basis
- With this continued strong funding position, TPR expect most schemes to be shifting their focus from deficit recovery to endgame planning.
- Despite healthy funding positions, trustees should keep in mind the potential for heightened trade and geopolitical uncertainty and understand any risks to a scheme’s investment strategy and employer covenant.
- TPR estimate that around 80% of schemes should be able to meet Fast Track. Fast Track enables TPR to reduce regulatory burden, as schemes can provide less information as part of the statement of strategy.
- TPR have provided further information to support trustees and employers undertaking and submitting their valuation under the new DB funding regime and will be risk-based and outcome focused when deciding which schemes to interact with.
PASA publishes updated Guidance on data readiness for buy-ins and buyouts
The Pensions Administration Standards Association (PASA) has released an updated and expanded version of its Guidance on data readiness for buy-ins and buyouts. The updated Guidance explores in more detail what insurers are likely to view as the key data items necessary to ensure a smooth and successful transaction.
In terms of essential data items the guidance provides that the data necessary for insurers to administer the insured benefits will vary considerably between schemes, but there is commonality, and fundamentally, the key questions trustees need to ask themselves are:
- Can an insurer be provided with all the data items required to process business as usual casework in the same way (and in accordance with the benefit specification) as the trustees’ administrators did?
- Does the electronic data currently include everything which might have historically been obtained from historic paper files and other off-system data-sources?
- Can the benefits be administered in future without the luxury of being able to rely upon the availability of longstanding administration team members, with decades of scheme experience between them?
Tables included in the guidance set out the key principal data items schemes are expected to hold electronically, for all members and the most common membership statuses.
TPR extends its oversight to professional trustee firms
TPR confirmed that it has undertaken evidence gathering with 11 of the biggest trustee firms to better understand their businesses, the risks and opportunities that arise and any conflict issues. TPR found a variety of business models in the market and a significant expansion in the number of professional trustees – all of which brought different risks and opportunities to savers.
As a result, it is now formally extending its oversight of PT firms seeking to influence better outcomes for savers.
TPR published a market oversight report exploring some of the areas where risks to saver outcomes could arise including:
- relationships with employers
- profit and remuneration model
- sole trusteeship
- in-house advisers
- scheme decision maker
TPR added it wanted to hear views from industry and urged anyone with information or experience of the PT market and any risks to contact it.
