Pension fund meaning

This Checklist This Checklist provides points to weigh up when preparing and seeking sign-off for a company voluntary arrangement (CVA) involving the Pension Protection Fund (PPF). It draws on PPF Guidance Note 5 issued in 2018 (see PPF Guidance Note 5: CVAs). When an employing company (or all participating employers in a last man standing scheme) files a CVA proposal with the court, a PPF assessment period begins. Under section 137 of the Pensions Act 2004, the PPF assumes the pension trustees’ voting entitlement (see Practice Note: The Pension Protection Fund—eligibility and entry). In practice, the PPF will typically cast a vote for or against the proposal rather than refrain. The PPF is consistently focused on avoiding any precedent that might allow pension schemes to be diluted where potential PPF entry could arise in the near future (the PPF observes that this has occurred in numerous prior CVAs). The PPF also anticipates that pension trustees will appoint their financial advisers to produce a report addressing the areas of concern...

This Checklist This Checklist considers the details a company voluntary arrangement (CVA) proposal must include under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 and Statement of Insolvency Practice (SIP) 3.2, together with expectations from other stakeholders likely to be impacted by the CVA, notably the Pension Protection Fund (PPF) and the British Property Federation (BPF): the IR 2016, SI 2016/1024, rr 2.2, 2.3 Statement of Insolvency Practice (SIP) 3.2 PPF requirements, see: Checklist for approval of CVAs involving the Pension Protection Fund BPF requirement, see: Checklist: British Property Federation engagement and red flags for company voluntary arrangements A CVA proposal sets out the detailed terms of a compromise between the company and its creditors, so it must be thorough and correct in every respect. If the proposal or surrounding circumstances are intricate, a solicitor should review or draft it to make sure it faithfully embodies the arrangement’s intentions. The proposal should be clear and...

Aon plc, the British‑American management consultancy, said it would ‘naturally’ give company directors more sway over a scheme if trustees of defined benefit plans were obliged to obtain the sponsor’s agreement to a new ‘statement of strategy’, as outlined by TPR earlier in March 2024. TPR also stated that managers of defined benefit retirement schemes must lodge the strategy alongside their routine valuation documents from 22 September 2024. A defined benefit pension delivers a guaranteed income each year for life, determined by a worker’s final or average salary...

TPR stated that its refreshed corporate plan for 2024 to 2027 will press ahead with policy measures aimed at safeguarding consumers’ funds and interests as the industry evolves. This involves bringing in new rules on pension scheme funding, trailed by the government in January 2023, intended to permit greater flexibility for investing in higher‑risk assets to help stimulate UK economic growth. The regulator added it will keep building the value‑for‑money framework, while making sure that new defined benefit (DB) consolidators, which combine smaller schemes, act to protect savers. The framework aims to move attention away from price and towards long‑term value for defined contribution (DC) pension savings. The government also intends to reshape the Pension Protection Fund as a public sector consolidator as the sector undergoes changes in the UK over 2024 to 2027 as well...

In this issue: Companies and corporation tax Stamp taxes VAT Individuals and income tax Taxes management and litigation Employment taxes Budget and Finance Bills Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Companies and corporation tax Court of Appeal decides interest on intra-group loans not restricted under transfer pricing rules but debits disallowed under unallowable purpose rule (BlackRock Holdco 5, LLC v HMRC) BlackRock Holdco 5, LLC v HMRC [2024] EWCA Civ 330 considers whether, for UK tax purposes, interest on intra‑group borrowing put in place to help fund a commercial acquisition is deductible. Two principal points were before the Court of Appeal: the transfer pricing analysis and the loan relationships unallowable purpose question. On the transfer pricing limb, the Court of Appeal allowed the taxpayer’s appeal. As a result, deductions for interest on the intra‑group loans were not curtailed by the transfer...

The Pensions Regulator (the Regulator) The Regulator is an arm’s-length public body set up under the Pensions Act 2004 (PeA 2004). Its authority to impose contribution notices and financial support directions appears in PeA 2004, ss 38–50. Although the Act does not use the label, these provisions are widely known as the Regulator’s ‘moral hazard’ powers. Their purpose is to counter the ‘moral hazard’ arising from the Pension Protection Fund (PPF): the possibility that corporate groups might organise their structures so as to heighten exposure within their pension schemes, comfortable that the PPF would intervene if the employer entered insolvency. The principal moral hazard tools—and the only ones exercised so far—are the power to issue a contribution notice (CN) and the power to issue a financial support direction (FSD). A CN compels the recipient to pay a specified amount into a defined benefit occupational pension scheme. A CN can be issued where the criteria in PeA 2004, s 38 are satisfied. These mechanisms exist to deter behaviour that would...

What is the Pensions Advice Allowance? Following consultation in 2016/17, the government brought in, from 6 April 2017, the Pensions Advice Allowance. It enables eligible pension scheme members to withdraw a fixed sum from their pension pot tax-free to cover holistic retirement advice. At the member’s instruction, the scheme may therefore reduce the value of the member’s pot by the advice fee and pay the funds straight to the member’s adviser. This measure stemmed from the Financial Advice Market Review, which highlighted an advice gap affecting people who require retirement planning support but cannot meet the cost from net-of-tax income or savings. It is available in addition to other existing advice allowances and payment routes for advice. These include adviser charging, which does not permit pension monies to be used to fund holistic retirement advice. For further details, see Other types of pensions advice measures below. The government’s aim is to help those preparing for retirement to use the Pensions Advice Allowance to fund holistic...

What is an assessment period? When a qualifying insolvency event affects the sponsoring employer of an eligible scheme, the scheme moves into a Pension Protection Fund (PPF) assessment period as a result of that event. This arises on the occurrence of that event. The day on which that period starts is known as the ‘assessment date’ for the scheme. Since 3 January 2012, the assessment period is no longer required to last for at least 12 months. Throughout the assessment period, the PPF considers whether the scheme satisfies the requirements for entry into the PPF. In particular, the PPF will appoint an actuary to carry out a valuation of the scheme as at the assessment date, in order to determine whether the scheme’s assets are less than the protected liabilities—broadly, the benefits the PPF would pay to members if the scheme were to enter the PPF...

Effective from [ insert date ], this statement of investment principles applies. 1 Statement of investment principles 1.1 Purpose of statement This document outlines the principles that steer decisions on investing the assets of the [ insert name ] Pension Scheme (the Scheme). It is published by the Trustees of the [ insert name ] Pension Scheme (the Trustees) to meet the requirements of the Pensions Act 1995, s 35. 1.2 Review The statement will be assessed each year. The Trustees may conduct an ad hoc review at any time if they consider there has been a material change in investment policy, or any other circumstances affecting the Scheme. 1.3 Advice The Trustees have received and evaluated written advice on the contents of this statement in a letter from [ insert name of investment consultant or actuary ]. [ insert name ] have confirmed to the Trustees that, through their ability and practical experience in financial matters, and with appropriate knowledge...

1 Introduction The Company supports continuous learning, urging every employee to enhance their skills and qualifications and to strengthen their chances for future career advancement, with accountability jointly shared between the Company and the individual employees themselves The Company aligns training and development offerings with the organisation’s requirements and goals, and choices about investing in staff learning and development are likewise determined by current business priorities and overall objectives The Company is dedicated to ensuring that access to, and decisions concerning, training and development are taken fairly and consistently at all times, and that equal opportunity is afforded to all employees across this area. The Company will ensure that no employee is barred from receiving training on grounds of race, colour, nationality, ethnic or national origin, gender, disability, sexual orientation, religion or belief, or age This policy outlines the training entitlement provided by the Company, any mandatory training, and details of any compulsory training that the Company does not fund, as required under relevant...