Wyn Derbyshire

This Practice Note focuses on the methods of managing pensions risk by the use of buy-outs and buy-ins in respect of defined benefit occupational pension schemes (DB schemes) and covers the considerations which arise when contemplating such pensions de-risking methods. The buy-out considerations covered in this note include trustee powers, the trustees’ duty to act in members’ best interests, employer top-up payment considerations, potential member consent requirements and Pension Protection Fund (PPF) considerations. The buy-in considerations covered in this note include trustee powers, trustee investment duties, potential member consent requirements and considerations relating to the PPF and the Financial Services Compensation Scheme (FSCS).

This Practice Note considers ways in which the trustees of a registered occupational pension scheme that is winding up may be discharged from liability, including through the statutory discharge route available at s 74 of the Pensions Act 1995, insurance, indemnity protection, exoneration clauses and various other statutory protections including statutory protection under the Trustee Act 1925, s 61 and against unknown beneficiaries under the Trustee Act 1925, s 27.

This Practice Note looks at the application of the disguised remuneration legislation, in particular focusing on the effects on non-registered pension schemes, and especially employer-financed retirement benefit schemes (EFRBS). The Practice Note also covers pensions-related exclusions to the disguised remuneration regime.

This Practice Note has been archived and is not maintained. It looks at the legal regime applicable to drawdown arrangements under registered pension schemes entered into before 6 April 2011, a time when such arrangements were then known as ‘unsecured pension’ and ‘alternatively secured pension’.

This Practice Note has been archived and it not maintained. It looks at the legal regime applicable to drawdown arrangements entered into on or after 6 April 2011 and before 6 April 2015 (whether in the form of income withdrawal or a short-term annuity). It is for background information only.

This Practice Note covers the statutory investment restrictions applicable to registered occupational pension schemes investing in the scheme’s sponsoring employer or in parties connected or associated with the employer (known as employer-related investment (ERI)). Subject to certain exceptions, no more than 5% of a registered occupational pension scheme’s assets may at any time be invested in employer-related investments. This Practice Note gives consideration of the issues including the nature and scope of the restrictions, the statutory definition of ‘employer-related investment’, applicable penalties and reporting requirements, as well as the Pensions Regulator’s (TPR’s) approach to breaches of the statutory restriction on employer-related investments.

This Practice Note discusses whether the Pensions Regulator can enforce contribution notices and financial support directions outside of the UK.

This Practice Note covers enhanced protection which is one of the earliest forms of allowance protection (introduced on A-day). Among other things, this Practice Note covers the interaction of enhanced protection with primary protection, the application process, auto-enrolment requirements and the loss of enhanced protection.

This Practice Note considers the application of estoppel in a pensions context. In particular, it distinguishes between the main doctrine of estoppel and estoppel by representation, it considers the difficulty of relying on a scheme’s explanatory literature and making a claim on behalf of a group of members. Finally, it looks at examples of successful estoppel cases.

This Practice Note looks at the legal requirements and formalities for executing pension scheme documents (specifically deeds and written contracts under hand) that apply to companies (eg participating employers or corporate trustees), limited liability partnerships (LLPs), general partnerships, limited partnerships, overseas companies, and individuals (eg individual trustees). It also looks at when a deed is delivered, as well as covering the legal requirements for the witnessing of documents, the virtual signing and execution of documents, electronic signatures, and the impermissibility of backdating documents.

This Practice Note covers fixed protection 2014, which is ones of the forms of lifetime allowance protection. Among other things, this Practice Note covers the application process, how fixed protection can be lost, the impact of pension debits on divorce, lump sum death benefits and auto-enrolment requirements.

This Practice Note covers fixed protection 2016 (FP 2016 or FP16), which is one of the forms of lifetime allowance protection. Among other things, this Practice Note covers the application process, how fixed protection 2016 can be lost, the impact of pension debits on divorce, lump sum death benefits and auto-enrolment requirements.

This Practice Note focuses on flexible retirement for employees who are members of registered occupational pension schemes. In particular this Practice Note considers the legislative framework for flexible retirement before and after 6 April 2011 (including the impact of the removal of the default retirement age exception on that date), age-discrimination and objective justification issues in relation to pensions for employers, the impact of the pensions auto-enrolment regime, the potential loss of transitional protection which flexible retirement may cause, and the life cover exemption.

This Practice Note looks at the considerations relevant to trustees of occupational pension schemes and/or employers required to make decisions in relation to members’ ill-health early retirement requests. This includes factors to consider before the decision-makers can exercise any discretion they may have, the extent to which employers should provide information to the member, considerations relevant to medical evidence, serious ill-health lump sums, how decisions should be recorded and circumstances where decisions can be challenged.

This Practice Note covers the various issues that may arise when interpreting scheme rules of a registered occupational pension scheme for the purpose of determining whether ill-health benefits should be granted to a member. This includes issues arising out of any divergence with the Finance Act 2004 definition of ill-health and interpretational issues derived from requirements in the scheme rules for the member to have ‘retired’ or be unable to work, as well as medical evidence requirements.

This Practice Note looks at what is meant by the term ‘independent trustee’ in a pensions context, how such trustees are appointed to an occupational pension scheme, the benefit they can bring to a scheme and the conditions to satisfy to remain on the Pensions Regulator’s trustee register.

This Practice Note explains the impact of the statutory change in the inflation measure from the Retail Price Index (RPI) to the Consumer Price Index (CPI) for the purpose of the indexation (ie increase) and revaluation of pensions, how the change was implemented, the interaction of the change with pension scheme rules and member communications, and the extent to which it is possible to amend the scheme rules in instances where RPI is hardwired into the rules. This Practice Note takes account of guidance provided by case law and Pensions Ombudsman determinations.

This Practice Note provides an introduction for persons who are new to pensions law to the different types of individual pension transfers which can occur, including from defined benefit (DB) schemes, defined contribution (DC) schemes and personal pension schemes, as well as transfers to and from overseas pension schemes, and transfers of contracted-out rights.

This Practice Note covers the individual protection 2016 (IP 2016 or IP16) regime introduced to reflect the reduction in lifetime allowance (LTA) from £1.25m to £1m from 6 April 2016, the benefits of IP 2016 (both before and after 6 April 2024), its features, its statutory regime, how to apply for IP 2016 and related timing issues.

This Practice Note focuses on the different forms of tax relief (whether income tax relief, national insurance contribution relief or corporate tax relief) available in respect of member (employee) and employer contributions paid to registered pension schemes. This Practice Note also looks at the different ways in which a member can claim income tax relief on member contributions and the tax treatment of employer contributions made on termination of the member’s employment.