Case Law
Verity Trustees Ltd v Wood (PE-2023-000004)
A case which it is understood will consider questions arising out of the Virgin Media case is expected to be heard in the next few months.
Verity Trustees Limited v Wood and another is a Part 8 application brought by the sole trustee of The Pensions Trust seeking directions in relation to amendments to the scheme.
A directions hearing took place on 24th January to determine outstanding issues regarding the trial timetable.
New Law
Guaranteed Minimum Pensions Increase Order 2025 - in force 6th April 2025
This Order specifies 1.7 per cent. as the percentage by which that part of guaranteed minimum pensions attributable to earnings factors for the tax years 1988-89 to 1996-97 and payable by contracted-out, defined benefit occupational pension schemes is to be increased.
News
Review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2025/26
The DWP has published the results of the annual review of the automatic enrolment earnings trigger and qualifying earnings band for 2025/26 and confirmed that:
- the existing threshold of £10,000 for the earnings trigger remains the correct level and will be maintained for 2025/2026. This represents a real terms decrease in the value of the trigger. Therefore, as earnings continue to grow, keeping the earnings trigger at £10,000 is expected to see private sector pension participation at 15.7million in total.
- the value of the lower limit of the qualifying earnings band for 2025/2026 will continue to be set at £6,240. It is estimated that maintaining the LEL will helpensure that pension savings in 2025/2026 will be broadly maintained – and slightly increased – compared to 2024/2025.
ACA, APL and SPP update on Virgin Media case
The working group of representatives from the 3 industry organisations has confirmed that is has continued to engage with the Department for Work and Pensions and that there has been regular communication to discuss the issues arising from the Court of Appeal’s ruling in Virgin Media Limited v NTL Pension Trustees II Limited. The working group has been providing information from its organisations to help the Department understand the adverse impact on industry of this ruling and has been examining what form any intervention could take.
The working group continues to believe that the Secretary for State should make regulations that would, subject to appropriate safeguards, enable the validation retrospectively of any amendment that is held to be void solely because either a written actuarial confirmation was not received before the amendment was made, or where such a confirmation cannot now be located. Quite what form such regulations could take, if a regulatory approach is agreed, is a matter that the working group is discussing with the Department, with the working group refining its thinking as a result.
PPF decision on levy
The PPF has confirmed that further to consultation on the 2025/26 levy rules it will conclude its decision making in January.
Legislative change is needed to provide the PPF with greater flexibility and ultimately enable it to set a zero levy. Pending legislative change, the PPF consulted this autumn on maintaining the levy at £100m next year.
Following the consultation the PPF Board has been carefully considering all options, including reducing the levy further before any legislative change. As part of this the PPF has been working closely with DWP.
The PPF will now look to finalise and publish its levy determination and rules for 2025/26 by end January.
If you have any queries about any of the issues covered, or you require advice on a pensions related matter, please do not hesitate to contact your usual contact.
