Allocation (Pensions) meaning

On 16 May 2025, WPI Economics noted that pension funds already hold £280bn in UK assets and cautioned that rigid rules setting fixed allocations might have unintended consequences. The caution followed the government’s unveiling of the Mansion House Accord, under which 17 pension schemes signalled plans to open up for pension savers access to potentially higher net returns from private markets within diversified portfolios, while also increasing investment in the UK. They argued that prescriptive fixed-allocation mandates risk backfiring in practice...

UK developments Contracts for Difference (Miscellaneous Amendments) Regulations 2024 SI 2024/Draft: These draft Regulations would revise the Contracts for Difference (Definition of Eligible Generator) Regulations 2014, SI 2014/2010 so that an individual who changes an ‘eligible generating station’ by decommissioning a section in order to replace it is treated as an eligible generator. The Contracts for Difference (Allocation) Regulations 2014, SI 2014/2011 are likewise amended. They are intended to come into force on the day after they are made. See: LNB News 29/10/2024 23. EU developments ESAs publish 2024 joint report on principal adverse impacts disclosures under SFDR: The three European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority—ESAs) have issued their third annual report on disclosures of principal adverse impacts under the Sustainable Finance Disclosure Regulation (SFDR)...

HM Treasury set out a slate of goals settled with TPR, among them an examination of the reporting duties it presently imposes on retirement schemes. However, at least one specialist argues that separate government moves, including fresh value-for-money reports and voluntary asset allocation disclosures, will significantly increase the existing volume of paperwork required of pension plans. The package agreed with TPR was presented as part of a far broader overhaul of the UK’s ‘risk-averse’ financial regulation framework, which the government estimates could propel up to £70bn in economic growth nationwide...

The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) imposes a statutory duty on employers in all industries to pass on to workers, without deductions, every tip, gratuity and service charge they receive or over which they hold control or material influence (qualifying tips), and to ensure distribution is fair and transparent. While it leaves untouched the rules on the taxation of tips, gratuities and service charges, its purpose is to guarantee that customer payments of this kind are allocated to workers. The Act is reinforced by a statutory Code of Practice on Fair and Transparent Distribution of Tips, together with non-statutory guidance. For further detail on the legal framework governing the payment and allocation of tips, gratuities and service charges, see Practice Note: Allocating tips, gratuities and service charges to workers. That Practice Note considers the tax treatment of tips and commission, which remains unaffected by E(AT)A 2023. The basic position is that both tips and commission, irrespective of...

A Limited Liability Partnership (LLP) An LLP is a statutory business vehicle created under the Limited Liability Partnership Act 2000 (LLPA 2000). From 6 April 2001, LLPs have been capable of being formed in England and Wales. Notable features of an LLP are: It is a corporate body and separate legal entity, with a legal personality independent of its members. It has unrestricted capacity. Its members benefit from limited liability, whereas partners in a general partnership have unlimited liability (although, for tax purposes, an LLP is treated as a general partnership). Members may determine their own arrangements, via an LLP members’ agreement, including: obligations to contribute to the LLP allocation of management responsibilities profit distribution mechanisms the appointment and removal of LLP members members’ duties to provide for their retirements An LLP is also distinct from a limited partnership constituted under the Limited Partnership Act 1907....

Statutory framework At present, four principal pension schemes operate in England and Wales for members of the armed forces. These are: Armed Forces Pension Scheme 1975 (AFPS 1975) — formerly open only to the regular forces; closed to new members from 6 April 2006 and stopped future accrual from 1 April 2022 Armed Forces Pension Scheme 2005 (AFPS 2005) — likewise for the regular forces only; also closed to future accrual from 1 April 2022 Reserve Forces Pension Scheme 2005 (RFPS 2005) — open to full time reservists; again closed to future accrual from 1 April 2022 Armed Forces Pension Scheme 2015 (AFPS 2015) — open to the regular forces and all reservists; effective from 1 April 2015 There are also several other schemes, run by the same manager, that provide pension or other occupational benefits to armed forces personnel. This Practice Note focuses on AFPS 2015. The AFPS 2015 was established under section...