Law360: The compensation that pension savers can claim for being poorly advised to transfer their pensions has fallen significantly (in most cases to zero) due to recent bond market fluctuations, a consultancy said on 9 January 2025.

Pensions analysis: The Administrative Court held that FSMA 2000, s 27(2) creates a single cause of action, accruing when money or property is transferred under the relevant agreement, so the six-year limitation period under LA 1980, s 9 runs from that date. Even if s 27(2)(b) created a separate compensation claim, loss was sustained on transfer because the claimants exchanged existing pension rights for less advantageous SIPP rights; at the latest, accrual would occur on investment. The decision is significant for practitioners handling failed SIPP and other pension-transfer claims, clarifying both the structure of s 27 remedies and the limited role of FSMA’s consumer-protection purpose when construing limitation provisions. Produced in partnership with Henry Day of Radcliffe Chambers.

Law360: Pensioners-to-be in the UK could lose about £70,000 in retirement when transferring their pension pot due to a lack of understanding of key information such as financial charges, according to recent research.

Pensions analysis: The Pensions Ombudsman (PO) has rejected a complaint that a pension scheme wrongly returned surplus to an employer following a winding-up of the scheme. Martin Scott of gunnercooke LLP looks at the decision.

Running a pension scheme can be a particularly challenging and onerous task for pension scheme trustees, especially in respect of large schemes consisting of numerous employers and members and a significant fund (or deficit). As a result, pension trustees usually appoint professional advisers for assistance, guidance and advice on matters beyond their expertise or capacity and otherwise as a convenient and prudent means to help administer the scheme. In some cases, trustees are legally required to appoint professional advisers (eg the requirement to appoint an auditor, actuary, fund manager and legal adviser under section 47 of the Pensions Act 1995 (PA 1995)). The professional advisers appointed typically include: • an actuary (particularly for defined benefit schemes) • an auditor • asset custodians • fund managers • investment advisers • documentation specialists • administrators, and • a legal adviser Although such advisers are often highly educated and experienced, and likely to have highly developed systems in place to ensure an efficient and competent service, like all humans they remain prone

Pensions analysis: The Deputy Pensions Ombudsman has rejected a complaint about the payment of a pension commencement lump sum (PCLS). Martin Scott of gunnercooke LLP looks at the decision.

This Checklist describes chronologically the action steps involved in the implementation of a pension sharing order from the perspective of the trustees of an occupational pension scheme. It does not address pension attachment orders, which are rare, see Practice Note: Pension attachment orders. More specifically, this Checklist sets out the steps on an application for a pension sharing order made in Form A, as opposed an application made in Form D50F for financial relief after an overseas divorce (which is less common), although the steps are similar on such an application. For information relating to the implementation issues which trustees may face in the context of a pension sharing order, see Practice Note: Pensions on divorce—issues for pension trustees. Action step Comment Source Trustees receive a copy of the Form A (Notice of intention to proceed with a financial application to which the standard procedure applies) containing an application for a pension sharing order. Technically, this step must be taken at the time that Form A is issued. In practice, the applicant spouse

Pensions analysis: The Pensions Ombudsman has upheld a complaint about the payment of death benefits from a pension scheme. Martin Scott of gunnercooke LLP looks at the decision.

Pensions analysis: The Deputy Ombudsman has rejected a complaint about an early retirement reduction to transferred-in benefits. Martin Scott of gunnercooke LLP looks at the decision.

Law360: The Pensions Regulator (TPR) has called on trustees to respond to the Financial Conduct Authority’s (FCA’s) consultation on a major shake-up of rules guiding what level of financial guidance can be issued by regulated firms and advisers to defined contribution (DC) pension savers.

Law360: Pension scheme trustees must demand the right evidence on cyber resilience after incidents at Marks & Spencer, Harrods and the Co-op showed how damaging security breaches can be, according to best practice guidance released by Trafalgar House.

The period the maximum drawdown/unsecured pension and alternatively secured pension limits apply to (and the dependant equivalents).