Pensions UK has published a report ‘Evaluating Pensions Models: The Maple 8 and the LGPS in Focus’ which examines the UK government’s interest in reforming the Local Government Pension Scheme (LGPS) by considering aspects of Canada’s consolidated public sector pension model, known as the Maple 8, highlighting potential benefits and challenges. Pensions UK’s report follows the government’s 2024 Mansion House reforms, which propose consolidating defined contribution pension schemes and LGPS investment management to enable increased investment in assets such as infrastructure and private equity while supporting saver returns. The report finds that the LGPS is strong and performing well but government reform should be cautious and tailored. While Canada’s model offers lessons, Pensions UK backs a measured approach that adapts ideas to the UK system and prioritises member interests. The report notes that the success of Canada’s consolidated public sector model allowed time for strategies to mature, is built on independence and expertise, including in-house skill, and long-term vision.

Governmental service through which scheme members with ‘flexible benefits’ over the age of 50 may be offered free and impartial advice on their retirement options, since April 2015.

PMI—Guide to the Key Principles of Pension Administration Agreements (November 2014) In November 2014, the Pensions Management Institute (PMI) launched a revised best practice guide setting out the key principles of pension administration agreements. The guide was produced in collaboration with CMS and Muse Advisory. he guide is particularly relevant for third-party administrators but is also applicable for schemes where administration takes place in-house. The guide is split into two sections: • the first section

A form of periodical payments/lump sum order available to the court in divorce, dissolution, nullity and judicial separation proceedings (issued after 1 July 1996).

This Practice Note explains what a pension attachment order made in family proceedings (previously referred to as an earmarking order) is and sets out which pension benefit rights can be attached and which cannot. It also details the key features of a pension attachment order, the risks of such orders and steps that may be taken to reduce risk, variation issues and tax consequences. Key features of pension attachment A pension attachment order requires the person responsible for a pension arrangement (the PRPA) to pay a percentage of the: • pension income, and/or • pension commencement lump sum, and/or • lump sum payable in respect of the member-party’s death available to a person with pension benefit rights in the pension arrangement (the member-party) to the person without pension benefit rights (the non-member party). A pension arrangement means an occupational pension scheme, a personal pension scheme, a retirement annuity contract and annuities purchased pursuant to an occupational or personal pension scheme, or to discharge liability in respect of a pension credit, see also: Types

A pension benefit provided by the employer to the employee.

A tax-free lump sum paid to a member of a registered pension scheme (who is aged under 75) in connection with an arising entitlement to a pension benefit (other than a short-term annuity contract), and which meets the conditions detailed in the Finance Act 2004, Sch 29, paras 1-3.

A tax-free lump sum that pension members may elect to receive when they start to draw benefits from a pension scheme, usually a maximum of 25% of the scheme value.

When a member of a pension scheme becomes entitled to receive their scheme benefits, they can usually take part as a tax-free lump sum. HMRC calls this a ‘pension commencement lump sum’ (PCLS). Taking a lump sum is usually at the option of the member who will need to elect the amount they take, but the scheme rules should be checked for procedural or other requirements. Under current legislation a PCLS is tax free, and so is usually an attractive option for members. Given the tax-free status, HMRC’s conditions for a lump sum to qualify as a PCLS are strict. This Practice Note first considers HMRC’s general conditions and then special conditions applying in particular cases. In a defined contribution (DC) scheme, a proportion of the member’s pension pot is simply paid to the member as cash. The situation is more complex for a defined benefit (DB) scheme, where a value must also be placed on the amount of pension that is given up for the lump sum. It is

This Practice Note sets out considerations applicable when drafting member communications. For issues specific to the task of reviewing or updating a scheme booklet, see Practice Note: How to review a scheme booklet. For information specific to retirement communications, see Practice Notes: Retirement communications in occupational DC schemes, Retirement communications in FCA-regulated pension schemes, Retirement risk warnings—requirements for occupational DC schemes and Retirement risk warnings—requirements for FCA-regulated pension providers. For further information on disclosure requirements, see Practice Notes: Disclosure requirements applicable to occupational and personal pension schemes after 5 April 2014 and Event-specific disclosure requirements for occupational and personal pension schemes. Broad principles Pensions legislation and the Financial Conduct Authority (FCA) rules require trustees, pension providers and/or employers to send communications to members for various reasons (eg on approaching retirement, as part of the disclosure requirements of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the Disclosure Regulations) or the consultation requirements of the Occupational Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006, SI 2006/349

Employers are required by statute to consult with members or their representatives for at least 60 days before making a ‘listed change’ to occupational or personal pension schemes. What constitutes a ‘listed change’ is set out in the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006, SI 2006/349 (the Pension Consultation Regs). For a consideration of wider issues which may apply when making amendments to an occupational pension scheme, see Practice Note: Amendment of occupational pension schemes—employer and trustee considerations. Statutory framework for the pension consultation requirements The requirement to consult was introduced with effect from 6 April 2006. Its operative provisions can be found in: • sections 259–261 of the Pensions Act 2004 (PeA 2004), and • Pension Consultation Regs, SI 2006/349 In April 2010, the DWP issued guidance to help employers comply with the requirement to consult. The guidance contains recommended good practice but it does not have any status in law. The guidance has now been archived but may still be of assistance to employers in complying with their

THIS CHECKLIST APPLIES TO OCCUPATIONAL AND PERSONAL PENSION SCHEMES Is there a requirement to consult employees? • Check whether the scheme is a trust-based occupational pension scheme. • Check whether there are at least 50 employees. • Check whether the employer is an excluded employer. • Check whether the proposal includes a change that requires consultation. • Check whether the change is being made to comply with statute (eg age discrimination legislation). • Check whether the change has a lasting effect on members' benefits. • If in doubt about whether the change requires consultation, consider checking with the Pensions Regulator. • Check whether there are any affected members. • If the change needs to be made quickly (eg to avoid the risk of insolvency), contact the Pensions Regulator to request that it waives the requirement to consult. • An employer does not need to consult representatives