Pensions Regulator

The Pensions Regulator has issued new guidance on how to complete scheme returns for defined contribution schemes.

The National Association of Pension Funds (NAPF) has responded to the consultation paper, Non-economic regulators: duty to have regard to growth, published by the Department for Business, Innovation and Skills (BIS) in March 2013.

HMRC has issued guidance for scheme members in relation to the costs and risks involved in pension liberation schemes.

On 26 February 2013 the Pensions Regulator published a research report on Employers' awareness, understanding and activity relating to workplace pension reforms, Autumn 2012.

The Pensions Regulator has issued its response to consultations on case team and determinations panel procedures, together with finalised procedure documents and flowcharts.

The Pensions Regulator has published an analysis of trust-based DC pension schemes in the UK.

The Pensions Regulator has issued a section 89 report in relation to the UK Coal Mining sections of the Industry-wide Coal Staff Superannuation Scheme and Industry-wide Mineworkers Pension Scheme. (free access)

On 5 December 2012, the Chancellor delivered his Autumn Statement. This legal update summarises the key pensions-related announcements. (free access)

The Pensions Regulator has updated its Winding-up: avoiding delays: good practice guidelines guidance.

The Pensions Regulator has published a consultation paper, Maintaining contributions.

The Pensions Regulator has issued an updated version of its step-by-step detailed guidance on auto-enrolment duties.

The Pensions Regulator has issued new, shorter guidance for trustees and employers on dealing with member incentive exercises.

The Pensions Regulator has published its annual report and accounts for the period 2011/2012. (free access)

The Pensions Regulator has published template letters to help employers write to workers about automatic enrolment.

The Upper Tribunal of the Tax and Chancery Chamber has issued its decision in The Trustees of the Lehman Brothers Pension Scheme v The Pensions Regulator and another (FS/2010/0029-31) (14 June 2012).

The Pensions Regulator has published its corporate plan for 2012 to 2015.

The Pensions Regulator has published the results of its 2012 scheme governance survey.

The Pensions Regulator has published details of the contribution notices issued in respect of the Desmond and Sons Limited 1975 Pension and Life Assurance Scheme.

The Pensions Regulator has published a report about its involvement with the restructuring of the Uniq plc Pension Scheme.

The Occupational and Personal Pension Schemes (Levies - Amendment) Regulations 2012 (SI 2012/539) have been laid before Parliament.

We have published a new article on current issues arising in the funding cycle for a defined benefit pension scheme, by Zoe Lynch of Sacker & Partners LLP.

The Pensions Regulator has issued an updated version of its step-by-step guidance on auto-enrolment duties and the DWP has issued a Workplace Pension Toolkit with information on auto-enrolment for employers. (Free access.)

The Determinations Panel of the Pensions Regulator has published its reasons for issuing financial support directions against five companies in the ITV group relating to the Box Clever Group Pension Scheme.

Two commencement orders have been made, The Pensions Act 2008 (Commencement No. 11) Order 2011 and The Pensions Act 2011 (Commencement No. 1) Order 2011, bringing into force certain provisions of those Acts on 1 and 3 January and 6 April 2012.

The Pensions Regulator has issued updated forms for its scheme returns. (Free access.)

The Pensions Regulator has published a statement, The role of trustees in DC schemes, setting out guidelines for expected good governance behaviour for trustees of DC schemes.

The Pensions Regulator has launched a new online e-learning module to help trustees of occupational pension schemes identify scheme statutory employers for 2011 scheme returns. (Free access).

The Pensions Regulator has published a new statement, Identifying your statutory employer. (Free access)

The Pensions Regulator has published an analysis of recovery plans submitted in the period to 1 February 2011. (Free access)

The Pensions Regulator has confirmed it has reached a settlement with Michel Van de Wiele NV and issued its first ever contribution notice. (Free access.)

The FSA has published a press release announcing that it has, for the first time, published decision notices for enforcement decisions that have been referred to the Upper Tribunal. (Free access.)

An Ask the team article examining the circumstances in which an employer might decide not to make a clearance application to the Pensions Regulator, and the steps the trustees might take in response.

The Pensions Regulator has issued statements on improving administration standards and steps for trustees to improve scheme administration.

The Pensions Regulator has published a statement for trustees about the role of the statutory scheme audit in record-keeping.

The Pensions Regulator has published an analysis of recovery plans submitted under the scheme-specfic funding regime.

The Pensions Regulator has published final guidance for trustees and employers on conducting incentive exercises, including enhanced transfer value exercises.

Minister of State for Pensions, Steve Webb, has made a written Parliamentary statement concerning the PPF administration levy and the general levy for the 2011/12 financial year. (Free access.)

The Pensions Regulator has published updated retirement booklets.

The Determinations Panel has made an order declaring a retrospective amendment to the ELCB Staff Pension Scheme to be void.

The Pensions Management Institute has responded to the Pensions Regulator's consultation, Defined benefit multi-employer schemes and employer departures: guidance for trustees.

The Pensions Regulator has published an overview of the employer's role in running a pension scheme.

A reminder about using our materials to help train new joiners.

The Pensions Regulator (Contribution Notices) (Sum Specified following Transfer) Regulations 2010 (SI 2010/1929) have been published.

The Pensions Regulator has issued a statement on the proposed change to the basis on which pensions in payment are indexed.

The Pensions Regulator has published a determination to issue a financial support direction against 25 companies in the Nortel group in Canada, the US, Europe and Africa.

The Parliamentary Ombudsman has rejected a complaint by a member of an underfunded scheme against the Pensions Regulator for failing to use its anti-avoidance powers

The Pensions Regulator has published a revised version of its guidance on internal controls.

The Pensions Regulator has published a statement for trustees of defined benefit schemes about monitoring and assessing the sponsoring employer covenant strength.

The Pensions Regulator has finalised its revised winding-up guidance for trustees.

We have published a new article on the pensions issues in the BA and Iberia merger written by Alarna Carlsson-Sweeny of PLC.

The Pensions Regulator has published its corporate plan for the years 2010 to 2013.

The Tribunal Procedure (Upper Tribunal) (Amendment) Rules 2010 (SI 2010/747) have been laid before Parliament.

The Department for Work and Pensions has published its response to the consultation on draft regulations under section 39A of the Pensions Act 2004 which have now been laid before Parliament for approval.

We have published a new article concerning the pensions implications of the ongoing financial crisis, written by Ruth Bamforth of Eversheds LLP.

The Pensions Regulator has published a consultation document on proposals to regulate schemes that fail to improve their record-keeping.

An Ask the team article considering the impact for pension lawyers of the Court of Appeal decision in Enviroco Ltd v Farstad Supply A/S [2009] EWCA Civ 1399.

The Purple Book 2009 has been published by the PPF and the Pensions Regulator.

The Pensions Regulator has issued a statement on the treatment of pension deficits in schemes sponsored by employers subject to price regulation.

The Pensions Regulator is consulting on revised internal controls guidance for occupational pension schemes.

The Pensions Regulator has published the results of its 2009 scheme governance survey.

A recent speech by Tony Hobman, chief executive of the Pensions Regulator, has given further details about the Regulator's role in the run-up to 2012.

On 17 September 2009, the Pensions Regulator and Financial Services Authority jointly published a guide for employers on how to talk to their employees about pensions.

The Pensions Regulator has issued a statement about higher standards of governance for defined contribution pension schemes.

The Pensions Regulator has issued a statement summarising its recommended approach to scheme funding and the employer covenant.

New regulations enabling the Pensions Regulator to delegate certain functions have been laid before Parliament.

The Pensions Regulator's annual report and accounts for 2008/09 has been laid before Parliament.

The Pensions Regulator has published its response to the consultation on the draft "Circumstances in relation to the material detriment test" code of practice, and a revised code has been laid before Parliament.

The Pensions Regulator determinations panel has issued a determination notice in respect of the Data General Employee Benefit Plan (TM 1915).

The Pensions Regulator has published its three-year corporate plan, detailing how it intends to meet its objectives from 2009 to 2012.

Directions issued under section 69 of the Pensions Act 2004 have been updated.

The Determinations Panel of the Pensions Regulator has published a determination notice relating to the Tartan Company Pension Scheme.

We have published a new practice note on the implications of the financial crisis for pension schemes, written by Ruth Bamforth of Eversheds LLP.

The National Association of Pension Funds (NAPF) has responded to the Pensions Regulator's consultation on its draft material detriment code of practice.

Settlement arrangements made following financial support directions issued by the Pensions Regulator in February 2008 have received its final approval.

The Pensions Regulator has issued a press release formally announcing the publication of its record keeping guidance.

An update about the 2008 Purple Book published by the Pensions Regulator and the Pension Protection Fund.

An update on the record-keeping guidance and consultation report published by the Pensions Regulator.

The Pensions Regulator has published a draft code of practice on the application of the new material detriment test for contribution notices.

The Pensions Act 2008 which received Royal Assent on 26 November 2008 has been published on OPSI.

The Pensions Regulator has issued a statement to pension trustees about the current financial pressures.

The Pensions Regulator has published its corporate strategy setting out the key regulatory priorities for 2008-2012.

The Pensions Regulator has published guidance for trustees, managers and employers on producing effective written member communications.

The Pensions Regulator has published final guidance for trustees on their new responsibilities for the calculation of defined benefit transfer values.

The government has published its response to its consultation on the Pensions Regulator's anti-avoidance powers alongside tabling amendments to the Pensions Bill proposing changes to those powers. In parallel, the Pensions Regulator has also published draft content for a new code of practice.

The Pensions Regulator has published the finalised version of its guidance for trustees and employers on addressing conflicts of interest. A draft version of the guidance was issued for consultation in February 2008 (see Legal update, Pensions Regulator consults on draft conflicts of interest guidance). The final version retains the five key principles for trustees to consider. As part of this process, schemes should put in place formal conflict-management policy documents, including arrangements to declare conflicts promptly. The Regulator has also emphasised the need to obtain legal advice in difficult situations and examines the most effective ways of managing conflicts. See Conflicts of interest: guidance from the Pensions Regulator, Pensions Regulator, 1 October 2008.

The United States Bankruptcy Court for the District of Delaware has approved a settlement agreement between three Sea Containers companies, their unsecured creditors and the trustees of the two Sea Containers UK pension schemes. The companies filed for relief under chapter 11 of the United States Bankruptcy Code on 15 October 2006. In the UK, the Pensions Regulator issued financial support directions (FSDs) in February 2008 requiring Sea Containers Ltd to put in place financial support for the two schemes reflecting the buyout deficit in the schemes (see Legal update, Sea Containers withdraws appeal against Regulator's decision to issue FSDs). The trustees had sought to agree the amounts of their unsecured claims, which comprised nearly $200 million relating to the funding deficit in the schemes, $5 million for expenses and an allowance of $69 million for equalisation claims. Agreement of the claims was also conditional on the Regulator's approval of the financial support provided. Dismissing objections made by the unsecured creditors, the court upheld the quantification of the funding deficit claim on the buyout basis. Further, the court held that the issue of FSDs by the Regulator did not violate the stay of proceedings under Chapter 11, since the Regulator was simply acting in accordance with its statutory functions. Although the FSDs by themselves did not amount to an attempt to assert claims, they provided guidance on the needs of the schemes and were pertine

The Regulator has issued guidance on effective member communications. The guidance sets out general principles of good practice in written communications to members and is for use by trustees, managers and employers. To assist trustees in member communication, the Regulator has also published a separate investment guide for members called 'Making pension fund choices: think before you choose'. The guide provides general information for members of defined contribution (DC) schemes on the different types of funds available, choosing funds and reviewing and changing fund choices. The Regulator states that trustees and employers can, if they wish, send the guide to members to help them understand the choices available within DC schemes. See Regulatory guidance: Effective member communications and Regulatory guidance: Making pension fund choices: think before you choose, Pensions Regulator, September 2008.

The Pensions Regulator has announced the suspension of GP Noble Trustees Ltd, a firm of independent trustees, from a number of schemes. The Regulator said that GP Noble's actions in relation to certain schemes gave it "cause for concern" but indicated that no threat arose in relation to members' benefits and declined to elaborate further. Subsequently, a row has erupted between the Regulator and Professional Pensions magazine. According to Professional Pensions, the Regulator raised the threat of criminal sanctions against the journalist who broke the story, arising from an alleged breach of the restricted information provisions contained in section 82 of the Pensions Act 2004. Section 82 defines "restricted information" as broadly any information obtained by the Regulator in the exercise of its functions relating to a person's business or affairs, which is not in the public domain. Restricted information must not be disclosed by the Regulator (or anyone receiving the information directly or indirectly from the Regulator), except in certain cases. Breach of section 82 is a criminal offence, punishable by a fine, imprisonment for up to two years or both. Lawyers acting for Professional Pensions contended that section 82 was not intended "to prevent or punish the reporting of actions taken by the Regulator, or to allow [in effect] such actions to be taken in secret". The Regulator responded that "in certain instances information is protected in law to protect the co

The Pensions Regulator has published a consultation document on record-keeping in which it stresses the importance of good record-keeping in the governance of pension schemes and sets out a number of proposals to improve standards.

The Pensions Regulator's code of practice dealing with the periods of time within which trustees and scheme managers should take various steps required under the statutory Internal dispute resolution procedure (IDRP) framework will come into effect from 28 July 2008. This is the appointed day under the Pensions Act 2004 (Code of Practice) (Dispute Resolution) Appointed Day Order 2008 (SI 2008/1882). The Regulator consulted on the code in late 2007 and issued a report about the consultation in February 2008 (see Legal update, Pensions Regulator publishes response to IDRP "reasonable periods" consultation). For detailed information about the new IDRP regime, see Practice note, Internal dispute resolution procedure. For a comparison of the IDRP process under the new and old regime, see Practice note, Internal dispute resolution procedure (IDRP): guide to reforms. See Pensions Act 2004 (Code of Practice) (Dispute Resolution) Appointed Day Order 2008 (SI 2008/1882) and Code of practice 11: dispute resolution - reasonable periods, Pensions Regulator (as laid before Parliament, March 2008).

The Pensions Regulator has published a report about its 2008 scheme governance survey. The results show that governance standards have remained largely consistent with last year but that larger schemes continue to be better governed than small schemes.

The Pensions Regulator has published the final version of its good practice guidelines on avoiding delays in winding up, which it issued for consultation in March 2008. As promised then, the Regulator is sticking with its expectation that schemes winding up in the future should complete the key stages in the process within two years (and those already winding up should do so as soon as possible). Also published are a joint statement by the Regulator, PPF and Financial Assistance Scheme and an analysis of consultation responses.

The Pensions Regulator has published best practice guidance setting out key issues for trustees to consider in their relations with advisers.

The Pensions Regulator has published Q&As aimed at the trustees of defined contribution (DC) schemes. Topics covered include governance, administration and investment. Key points arising include: The Regulator expects trustees of hybrid schemes to have knowledge and understanding of the requirements for both defined benefit and DC schemes. For employers operating group personal or stakeholder pension schemes, the Regulator believes it is in members' interests for employers to set up governance arrangements, through a management committee, employee representation or just regular input from a financial adviser. The Regulator is part of a working group, along with the DWP, HMRC and industry representatives, which is examining the impact of the proposed abolition of DC contracting-out in 2012. In cases of reports of late payments by employers to DC schemes, the Regulator prioritises the reports received to focus on those where the impact on members is greatest. The Regulator is focusing on two key areas of scheme administration: effective record-keeping and delays in winding up. While not setting any prescriptive limits, the Regulator acknowledges that there is evidence some DC schemes offer members too many fund choices. See Q&As: DC schemes, Pensions Regulator, May 2008.

The Department for Work and Pensions is consulting on amendments to anti-avoidance legislation.

The Pensions Regulator has launched "Exchange", its online scheme maintenance system. Schemes can amend the details they have supplied to the Regulator in their scheme returns and notify the Regulator of certain events such as completion of winding up. From June 2008, schemes will be able to pay the general levy through Exchange. The Pension Protection Fund (PPF) has updated its "frequently asked questions" about the levy to refer to Exchange in relation to corrections schemes may want to make to data submitted in scheme returns or voluntary certificates designed to reduce the levy. Unlike in previous years, from 2008/09 onwards the PPF will not accept data corrections in calculating the levy for 2008/09 and 2009/10, but the PPF advises schemes to update their details on Exchange so that these are taken into account for the 2010/11 levy calculation. See Exchange, Pensions Regulator and FAQs: pension protection levy 2008/09: general questions, PPF.

The Public Accounts Select Committee of the House of Commons has published a report about the operations of the Pensions Regulator. Though comparing the Regulator favourably with its predecessor, the Occupational Pensions Regulatory Authority, the report calls for the Regulator to pay closer attention to defined contribution (DC) pension schemes. The committee calls for the Regulator to undertake a review with the Financial Services Authority on the adequacy of information provided to scheme members about the level of their likely pension. In other areas, the report suggests the Regulator should focus on improving scheme governance, citing statistics which suggest that fewer than one-third of schemes maintain a conflicts register for their trustee boards. In relation to trustee knowledge and understanding, the report notes that only 15% of all trustees have registered to use the Regulator's trustee toolkit. Calling for greater transparency, the committee endorses the Regulator's decision in September 2007 to publish most of its future determinations. See Public Accounts, Fifteenth report of 2007/08 session.

The government's recent announcement of proposals to extend the Pensions Regulator's so-called moral hazard powers has taken industry by surprise.

The Pensions Regulator has published its three-year corporate plan, detailing how it intends to meet its objectives over the period to 2011. The plan reveals that strengthening the funding of defined benefit schemes remains a key priority for the Regulator, as was the case in the last version published in May 2007 (see Legal update, Pensions Regulator issues three-year corporate plan: scheme funding a key concern). The other three main themes identified are "improving the governance of work-based schemes", "addressing the risks to defined contribution scheme members" and "delivering effective risk-based regulation". The plan reveals several interesting details about the Regulator's workload for the coming year: for example, for 2008/09 no further codes of practice are planned, but guidance is to be issued in nine areas. The Regulator expects to grant clearance in 150 cases (up from 140 in 2007/08) and agree to 25 withdrawal arrangements (up from 21). One significant change since last year is the government's decision to give the Regulator a key role in policing the personal accounts regime when it is introduced in 2012. No doubt many of the Regulator's resources will be diverted to this task, and the target of reducing the Regulator's budget to £18.33 million by 2010 has been replaced by a more modest target of £26.4 million. See Regulator sets out strategic direction for next three years, Pensions Regulator, 24 April 2008.

The Department for Work and Pensions (DWP) has announced plans to consult on widening the power contained in the Pensions Act 2004 for the Pensions Regulator to issue contribution notices (CNs). The draft legislation will be issued in the near future and we will publish a full update when it is available. In the meantime, a statement issued by the DWP reveals plans: To allow the Regulator to issue a CN if the effect of an act is materially detrimental to a scheme's ability to pay members' current and future benefits. It seems from the DWP statement that this test will replace, rather than supplement, the existing provision, which allows the Regulator to issue a CN if it can identify an act or omission, the purpose of which is to prevent payment of an employer debt or stop a debt becoming due. In other words, once the legislation has been amended, the Regulator will only have to evaluate the effect of a change, instead of the parties' intentions, as currently applies. To remove the provision that the Regulator cannot issue a CN if a party has acted in good faith. To prevent parties circumventing the anti-avoidance powers by using bulk transfers between schemes. These changes will take effect from 14 April 2008. Additional changes (including clarifying that the issue of a CN can be triggered by a series of acts as well as a single act) will be back-dated to 27 April 2004 when the original legislation was enacted. For background information about the Regulator's po

On 20 March 2008, the Pensions Regulator published the final version of its updated clearance guidance. The updated guidance replaces that published in April 2005. Relevant events that may affect schemes and may need clearance have been reclassified, with the specific type B and C events deleted. The Regulator now expects clearance to be sought only in relation to type A events, which are defined as all events that are materially detrimental to the ability of a scheme to meet its pension liabilities. Type A events have been sub-divided into employer-related events, such as a change in group structure, and scheme-related events, such as an apportionment of an employer debt. Employer-related events will count as type A events if the scheme has a "relevant deficit" (usually the highest of the deficits calculated on the IAS 19, section 179, technical provisions or ongoing basis). Scheme-related events will always be type A events irrespective of whether the scheme has a deficit.

On 20 March 2008, the Pensions Regulator issued revised guidance on the clearance process it operates in relation to corporate transactions and events that may have a material detrimental effect on a pension scheme (final revised guidance). Draft revised guidance was issued for consultation on 10 September 2007 (draft revised guidance) (see PLC Legal update, Pensions in corporate transactions: proposed revised clearance guidance). The concept of type A events as being the only events for which clearance is appropriate and the division of type A events into scheme-related and employer-related events, as set out in the draft revised guidance, has been retained in the final revised guidance. The main changes made to the draft revised guidance are mostly structural, and include: Removal of the detailed content on monitoring the employer covenant on the basis that this is considered to be a general governance issue rather than specific to clearance. The Pensions Regulator intends to issue separate material on the employer covenant later this year. Clarification of the language in the final revised guidance to make it clear that the guidance is aimed primarily at professional advisers to both applicants for clearance and trustees. Some further explanation in the final revised guidance of the types of events that would not generally be considered type A events. The final revised guidance replaces guidance issued in April 2005 (see PLC Legal update, Pensions in corporate

The Pensions Regulator has published a consultation document containing draft guidance for trustees on managing conflicts of interest in connection with occupational pension schemes. The draft sets out five key principles for trustees to consider. Schemes should put in place formal conflict-management policy documents, including arrangements to declare conflicts promptly. The Regulator has also emphasised the need to obtain legal advice in difficult situations and examines the most effective ways of managing conflicts. Appended to the draft are a template for a conflicts register, a standard-form declaration of interest and a specimen conflicts policy document. Consultation on the draft guidance remains open until 30 May 2008.

In a written parliamentary answer, Lord McKenzie of Luton, parliamentary under-secretary of state at the Department for Work and Pensions, has indicated that the Pensions Regulator's promised guidance on winding up occupational pension schemes is to be published "imminently". We will cover the guidance in detail when it is available. See Parliamentary written answers, Lords Hansard, 18 February 2008.

The Pensions Regulator has reported on the responses it received to its consultation exercise on the draft code of practice relating to the new internal dispute resolution procedure (IDRP) regime. The revised IDRP provisions are due to come into effect in April 2008. The code of practice will give guidance to trustees on the "reasonable periods" referred to in the primary legislation, which are replacing the strict deadlines in the current regime (see Legal update, Pensions Regulator consults on draft IDRP code of practice). The Regulator received 22 responses to the consultation paper. Several points are clarified in the report, leading to a few changes to the proposed code as a result of points raised by respondents: The four-month period for trustees to reach a decision applies to the entire IDRP if a one-stage IDRP is adopted. If schemes retain two stages, the four-month period applies separately to each stage. The Regulator has reiterated that there is nothing to prevent trustees agreeing shorter timescales if they wish. The 15-day period for notifying applicants of decisions is additional to the four months. The list of matters to which the IDRP requirements do not apply has been corrected so that it accords with the legislation. Some respondents considered that the time bar for applicants to make an IDRP complaint (six months before they stop having an interest in the scheme) could be unfair on those who were not aware of their basis of claim. But the Reg

The Pensions Regulator has published a summary of the UK's social and labour law. Under the cross-border regime introduced under the Pensions Act 2004, cross-border schemes based outside the UK which have UK-based members and a UK-based employer contributing to them must comply with the UK's social and labour law in relation to those members. For more on this topic, see Practice note, Cross-border pension schemes. See Summary overview of UK social and labour law relevant to pensions in the UK, Pensions Regulator, January 2008.

On 5 February 2008, the determinations panel of the Pensions Regulator issued two financial support directions (FSDs) against Sea Containers Ltd. This follows Sea Container's decision to withdraw its appeal against the Regulator's determinations to issue two FSDs against it in June 2007 (see Legal update, Pensions Regulator to issue first financial support directions). This is the first example of the use of the Regulator's anti-avoidance powers created under the Pensions Act 2004. Sea Containers Ltd must now put in place financial support for two UK defined benefit schemes of its London-based UK subsidiary Sea Containers Services Ltd within 30 days of the FSDs being issued. See Regulator issues Financial Support Directions on Sea Containers, Pensions Regulator, 5 February 2008.

The Pensions Regulator has published "Guidance for Trustees". Spanning over 50 pages, the guidance is aimed primarily at trustees or anyone thinking of becoming a trustee and gives a basic coverage of general trust law issues as well as trustees' statutory obligations. The Pensions Act 2004 requires trustees to have knowledge and understanding of general trust law, investment and funding issues and the guidance is a useful starting point for trustees towards achieving this aim. The guidance complements the Regulator's Trustee toolkit. See "Guidance for Trustees", Pensions Regulator, December 2007.

On 18 December 2007, the Pensions Regulator and the Pension Protection Fund (PPF) published the second edition of the "purple book", drawing together the available data about nearly 5,900 final salary pension schemes in the UK. The publication is produced from information provided in scheme returns to the Regulator and through the determination of the risk-based levy by the PPF. Chapters cover scheme demographics, funding, asset allocation, insolvency risk, and PPF levy payment details. New chapters included in the 2007 edition look at schemes in assessment periods and that have entered the PPF. Key results include: 61% of schemes are closed to new members of further accruals. Financial modelling suggests that scheme deficits have altered markedly over recent years, with overall funding varying by £220 billion over the last four years. At 20 March 2007, 64% of schemes were in deficit on the PPF funding basis. Overall, 60% of scheme assets are invested in equities and 29% in gilts and fixed interest, reflecting virtually no change from 2006. At March 2007, 179 schemes were in the PPF assessment period, with 51% of these coming from the manufacturing sector. See 2007 purple book, Pensions Regulator and PPF, 18 December 2007.

On 16 November 2007, the determinations panel of the Pensions Regulator published its reasons for upholding its decision to appoint three firms of independent trustee to the Telent pension scheme. The panel concluded that the appointment was necessary under section 7(3)(c) of the Pensions Act 1995 to secure the proper use or application of the scheme assets. It found that there was a realistic prospect that fundamental conflicts of interest might arise on the part of Pensions Corporation, who had mounted a takeover bid for Telent plc, given that Pensions Corporation intended to manage the scheme in such a way that would generate a return for its investors. The panel felt that the appointments were a balanced and proportionate response to the risks, given the Regulator's duty to have regard to members' interests.

The Pensions Regulator has published a summary of the responses received to its discussion paper on scheme governance issued in April 2007 (see Legal update, Regulator publishes discussion paper on scheme governance). 40 responses were received. Respondents were apparently keen that the Regulator should avoid detailed prescription as far as possible, and focus on setting out broad principles for trustees and employers to follow. Commenting on the responses, the Regulator emphasises that it does not intend to increase burdens on schemes, but aims to provide support and guidance, in particular through improved education. Within this framework, the Regulator plans to publish further materials in several key areas, including: Guidance in connection with managing trustee conflicts of interest, including a template conflicts policy, risk register and declaration of interests document. Guidance on monitoring the employer covenant (to be included in the revised clearance guidance). A checklist of questions for trustees to ask advisers. Guidance on the regulation of schemes that are winding up. Examples of good practice in areas such as administration and investment. See How the Regulator will promote better governance of work-based pension schemes: the Regulator's response, October 2007.

The Pensions Regulator has announced that it will introduce a new online system, called Exchange, that will enable trustees of occupational pension schemes to both complete their scheme return and update their scheme details online. The new system will be available later this year and is intended to simplify the requirement on trustees of occupational pension schemes to provide a regular scheme return. Scheme return notices will be issued by first class post to the scheme's designated registered address, from December 2007. Once a trustee has submitted a return, they will be able to view and amend their scheme details online, 24 hours a day, and trustees involved with more than one scheme will be able to manage these from one single account. Once a trustee receives their scheme return notice, actions to take include the following: Registering their basic details. Entering the scheme's unique pensions registry number and key, contained in the notice. Answering a series of initial questions, which differ depending on whether the scheme is defined benefit or defined contribution. Completing the relevant sections and making any necessary amendments. Submitting the return. See Get ready for the regulator's new systems, Pensions Regulator, September 2007.

The Pensions Regulator has issued its annual report and accounts for 2006/07. The report reviews the Regulator's achievements during the past year. These include producing all the codes of practice required by the Pensions Act 2004, issuing further guidance on scheme funding, and completing the production of its trustee toolkit. During 2006/07, the Regulator granted 149 clearance applications, and refused just one. It received 874 enquiries about obtaining clearance in particular transactions. The Regulator also received 1,233 reports of alleged breaches of law, and was notified of 640 notifiable events. It made 552 independent trustee appointments. See Press release: Pensions Regulator publishes report and accounts 2006/2007, Pensions Regulator, 24 July 2007 and Pensions Regulator, Annual report and accounts 2006-2007.

The Pensions Regulator has announced its intention to issue two financial support directions; this action heralds the first use of its much-trumpeted anti-avoidance (moral hazard) powers under the Pensions Act 2004.

The Pensions Regulator has published a report about its 2007 scheme governance survey. As expected, the survey found that larger schemes were better governed than smaller ones. Trustees' confidence in their ability to manage conflicts of interest improved compared with the previous year, and more schemes assessed the strength of the employer's covenant.

Following a two-yearly review of its code of practice about reporting breaches of the law, the Pensions Regulator has announced that the code does not need amending. But the Regulator has made several changes to the supporting guidance. An additional illustrative example of an "amber breach" situation has been included, covering the failure by a scheme's trustees to obtain an annual updating report from the scheme actuary. And the guidance now highlights that advisers are not being disloyal if they report a breach to the Regulator, but instead are acting in accordance with their professional obligations. It emphasises the importance of maintaining dialogue with advisers if a breach is identified. See Pensions Regulator: reporting breaches code of practice and Pensions Regulator: reporting breaches guidance.

The Pensions Regulator has published two determinations giving notice of its intention to issue financial support directions (FSDs) against Sea Containers Limited after 28 days have elapsed. The determinations follow an oral hearing that took place before the Regulator's determinations panel on 12 and 13 June 2007. Assuming FSDs are issued, this will be the first occasion on which the Regulator has used its anti-avoidance powers enacted under the Pensions Act 2004. Sea Containers Limited has the right to appeal against the determinations to the Pensions Regulator Tribunal.

The Pensions Regulator has issued its corporate plan for the period until 2010. The Regulator's key priorities are: Strengthening the funding of defined benefit schemes. Improving the goverance of all work-based schemes. Reducing risks to the members of defined contribution schemes by improving trustees' understanding.

The Pensions Regulator has published its response to an earlier discussion paper on scheme abandonment and revised its guidance for trustees. There is little of substance that is new in the revised guidance. Trustees are encouraged to investigate and understand the effects on the scheme and its members of changes proposed by the employer that break the link between the employer and the scheme.

On 25 April 2007, the Pensions Regulator published its report on how it will regulate defined contribution schemes in relation to risks to members. The Regulator's approach will focus on: Educating all parties (including members) involved in defined contribution schemes on the risks and good administration practices. It will publish specific guidance on a number of issues that are relevant to defined contribution schemes. Working in partnership with the government, the Financial Services Authority and the pensions industry to develop and promote good practice guidance. Intervening in a proportionate and appropriate manner in situations that have a "materially significant detrimental impact" on the scheme or the Regulator's objectives. The response is silent as to when the Regulator expects to publish further guidance on the regulation of defined contribution schemes.

The Pensions Regulator has announced that it no longer requires the trustees or managers of stakeholder pension schemes to provide it with a copy of their annual declaration and accompanying documents.

The code of practice on the modification of subsisting rights was laid before parliament on 7 November 2006. Barring representations it should come into effect before Christmas. The code of practice describes what the Pensions Regulator expects of trustees, employers and other pensions professionals involved in amending occupational pension schemes in accordance with the provisions of section 67 of the Pensions Act 1995 as amended.

The Pensions Regulator has published a code of practice about duties on employers and trustees to give notifications to the Pensions Regulator.

The Pensions Regulator has issued guidance concerning the new obligations of trustees and their advisers to report relevant breaches of the law relating to their pension scheme to the Pensions Regulator.

The Pensions Regulator (Notifiable Events) Regulations 2005, Directions and a Code of Practice about new duties on employers and trustees to give notification to the Pensions Regulator have been issued.

The Occupational Pensions Regulatory Authority has issued guidance on the implications of the Pensions Act 2004 for employers and trustees.

The Occupational Pensions Regulatory Authority has given guidance on actions it expects trustees to take when agreeing compromises with employers.

The Occupational Pensions Regulatory Authority has issued guidance on the "whistleblowing" requirements of section 48(1) of the Pensions Act 1995.

The Occupational Pensions Regulatory Authority has issued guidance on when scheme actuaries and auditors must report to OPRA breaches of the law relating to pension schemes.

Existing occupational and personal pension schemes must register and pay the first instalment of the levy by 31st July, 1991. The Registry has issued new guidelines as to the classes of member in respect of whom the levy is payable.