Self-investment definition

View the related practice notes about Self-investment

An introduction to the UK pension system for the private client practitioner—how pension schemes are governed and the key regulatory bodies

An introduction to the UK pension system for the private client practitioner—how pension schemes are governed and the key regulatory bodies In the UK most pension schemes in the private sector, ie both occupational and personal pension schemes, are established under trust and are therefore subject to trust law. The trustees appointed under the governing trust deed are required to act in accordance with the trust deed and rules and overriding legislation applicable to the relevant pension scheme. Probably the most important tenet of trust law is that the trustees must act in the best interests of the members of the pension scheme, subject to the governing provisions of the scheme in question and general applicable law. In the public sector, pension schemes are established mainly by Parliamentary statute and are subject to their scheme rules and overriding legislation, but some are established under trust and thus subject to trust law and are required to act in accordance with the trust deed and rules as well as any...

How to manage scheme funding deficits

How to manage scheme funding deficits STOP PRESS: On 4 December 2024 the Pensions Regulator (TPR) finally published the updated employer covenant guidance for trustees of DB pension schemes, aligned with its new DB funding code of practice which was brought into effect on 12 November 2024 by 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 updated guidance includes the first regulatory definition of employer covenant aiming to provide greater market certainty and promote consistency across schemes. Key updates encompass cash flow analysis, reasonable affordability assessments, maximum affordable contributions, reliability periods, covenant longevity, and contingent assets. The updated guidance emphasises proportionality in covenant assessments and includes worked examples for complex areas. Significantly, TPR expects trustees to use the updated guidance to review whether their existing covenant analysis is focused in the right areas...