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UK pensions weekly: DB funding flexibility for open schemes, productive finance, GMP equalisation tool and 3% GMP increase, TPR confiscation orders, PECR fix, pot for life update—18 January 2024

Published on: 18 January 2024

Published by a LexisNexis Pensions expert
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In this issue:

  • Funding
  • Pensions scams and litigation
  • Contracting-out and equalisation
  • Data Protection
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Funding

Govt responds to Committee’s concerns about potential impact on open schemes from new DB funding regime

The Work and Pensions Committee has posted on its website a letter from the Pensions Minister, Paul Maynard MP, replying to the Committee’s earlier correspondence of 19 July 2023 to the then Pensions Minister, Laura Trott MBE MP, which raised worries about the possible effects on open defined benefit schemes of the government’s proposed new DB funding framework. In his 18 December 2023 response, the Minister says there is no case for a separate regime for open schemes, which could enable inappropriate gaming, yet these schemes should not be driven into an unsuitable de‑risking path. He confirms the government will make clear in the updated draft Scheme Funding and Investment Strategy Regulations that open schemes may reflect both new entrants and future accruals when setting their funding plans...

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