Pension Liberation meaning

Original news Mr R (CAS-63400-N0T9) – 21 October 2024. Summary The Deputy Pensions Ombudsman dismissed a grievance concerning a transfer into a pension liberation arrangement. It was considered inappropriate to assess the decision through the lens of hindsight. The 2013 ‘Scorpion’ guidance post-dated the transfer by two years and therefore did not apply anyway. The Scheme undertook suitable, robust and proportionate due diligence consistent with industry practice at the time. This outcome confirms the Pensions Ombudsman does not make retrospective judgements in such circumstances. What were the facts? Mr R held deferred status as a member in the Armed Forces Pension Scheme (the ‘Scheme’)...

Summary The Pensions Ombudsman dismissed a complaint about a pension transfer into a pension liberation arrangement. Under the regulatory guidance then in force at the time, the transfer process presented no obvious warning signs. The pension scheme had no obligation to verify the authorisation of the investment advisers directly connected with the transfer. This decision serves as a reminder that the scope of necessary due diligence is assessed by reference to the guidance applicable at the relevant time. What were the facts? Mr N was a member of the Chevron UK Pension Plan (the Scheme)...

In this issue: Funding and investment Scheme governance Pension scams and liberation Daily and weekly news alerts Dates for your diary Trackers Funding and investment TPR publishes revised employer covenant guidance to align with new DB funding code of practice The Pensions Regulator (TPR) has at last issued revised guidance on the employer covenant for trustees overseeing defined benefit (DB) pension schemes, to align with its new DB funding code of practice, which took effect on 12 November 2024 under the Pensions Act 2004 (Code of Practice) (Defined Benefit Funding) Appointed Day Order 2024 (SI 2024/1143). Described by TPR as ‘the last piece of the jigsaw to help schemes carry out valuations under the new DB funding code’, the update introduces the first regulatory definition of employer covenant, intended to deliver greater market certainty and foster consistency between schemes. Notable changes cover cash flow analysis, tests of reasonable affordability, maximum affordable contributions, reliability periods, covenant longevity, and...

ARCHIVED : This case tracker is archived and is no longer actively maintained. It presents a catalogue of notable pensions judgments delivered in 2017 by the courts. The entries in this tracker are arranged by subject. Those subjects appear in the Table of Contents (on the left side of the page), set out there. This Practice Note includes citations to case law from the Court of Justice of the European Union. In general, EU judgments issued on or before 31 December 2020 remain binding on UK courts and tribunals (even where the EU courts later depart from them) until the UK courts exercise their powers to diverge. For the most part, EU case law produced after that date is not binding on the UK, though UK courts and tribunals may still have regard to EU judgments where relevant. For fuller information on the approach to EU case law, see Practice Note: Retained EU law and assimilated law...

Pension liberation and other pension scams Over recent years, the pensions sector has shifted from ‘pension liberation’ (see definition below) towards investment scams and frauds that coax savers to transfer their pension pot into unsuitable or exotic assets, which are unlikely to deliver the promised returns and may attract high charges and fees (see definition of ‘pension scam’ below). This Practice Note examines the legal issues arising around pension liberation and other pension scams, including enforcement matters and the actions taken by the Pensions Regulator, the Pensions Ombudsman, HMRC and the Insolvency Service to counter such activity. It also provides practical pointers for trustees and other pension providers—see Practical guidance for trustees/providers, below. As scam methods continue to evolve, pension liberation has become less common. Other pension scams may involve persuading members to transfer their pension savings into occupational pension schemes so as to invest them in unusual or high-risk investments, such as: overseas property renewable energy bonds forestry parking units ...

ARCHIVED: This case tracker is archived and not maintained. It lists key pensions judgments from 2021, arranged by topic. Entries are grouped by subject, with topics shown in the Table of Contents to the left of the page. Discrimination MH and ILA (Droits à pension en cas de faillite) Full name: BJ and OV, joint trustees in bankruptcy of Mr M v Mrs M, MH, ILA, Mr M Citation: C-168/20 Court: Court of Justice of the European Union (CJEU) Judgment Date: 11 November 2021 Representation: D.J. Rhee QC, C. Harrison (Barrister), and I. Gill (Solicitor) for BJ and OV, joint trustees in bankruptcy of Mr M; G. Peretz QC, J. Briggs (Barrister), and S. Gilchrist (Solicitor) for Mrs M, MH, ILA and Mr M; L. Armati, L. Malferrari and M. Wilderspin, Agents for the European Commission Key take-away: On a preliminary reference from the High Court, the Court of Justice ruled that section 11 of the Welfare Reform and...