Pensions updates | October 2024

Pensions Investment and ESG

TPR launches new ESG resource to boost trustee compliance.

The Pensions Regulator (TPR) has launched a new resource bringing all of its environmental, social and governance (ESG) and climate material into one place.

In a new blog post designed to help pensions trustees go beyond minimum compliance with ESG duties, Mark Hill, TPR’s Climate and Sustainability Lead, explained that TPR's research shows the majority of trustees are currently meeting their ESG duties, but many only to minimum competence. He said that in order to improve portfolio resilience and deliver better outcomes for savers, further steps are required.

While ESG and climate disclosures that pension schemes publish need to show what has been done to capitalise on opportunities arising from the government's ambition to move to a net-zero economy, disclosure alone is not enough, according to Hill. "Considering ESG factors as part of a scheme's wider decision-making is vital to protect savers' pensions" he explained.

"It should be business as usual for trustees, not something considered only when it's time to complete a report."

Pensions disclosure requirements

PASA releases new 'Dashboards Toolkit'.

The Pensions Administration Standards Association (PASA) has launched its 'Dashboards Toolkit' to help ensure the way data is presented on a pension dashboard is done so with consistency of approach(es). The Dashboards Toolkit will be updated periodically.

The initial release includes:

• A checklist of activities to consider when connecting using the single source approach.
• An AVC Questionnaire where AVC Provider connects directly to the pensions dashboard ecosystem.
• A list of AVC providers detailing PASA’s current understanding of the connection method(s) supported by each provider.

For further information on what your scheme needs to be doing to be 'Dashboard Ready' please get in touch with our pensions team for further support.

Collective defined contribution schemes

Royal Mail launches its collective defined contribution scheme.

Royal Mail has finally launched its Collective Pension Plan on 7 October 2024. The Plan was the first CDC scheme to be authorised by the Pensions Regulator on 13 April 2023, but is formal launch was repeatedly delayed. The Plan will be available for over 100,000 employees and Royal Mail employees will need to have at least one year of service in order to be eligible to join.

Royal Mail will be contacting employees shortly, offering them to sign up to the 'self service' portal. The Plan is managed by a board of Trustee Directors that is independent of Royal Mail.

The Pension Schemes Act 2021 introduced an authorisation and supervision regime for collective defined contributions schemes (CDC) schemes and the Pensions Regulator published a code of practice in 2022 explaining how they are assessed for authorisation and then supervised. CDC schemes must show they meet stringent criteria, including that those who run the scheme meet fitness and propriety requirements, have the right systems and processes in place, can show the scheme is financially sustainable, and have robust member communications. The Pensions Regulator has powers to intervene when necessary.