This Practice Note looks at the benefits which are payable where a member of an occupational or personal pension scheme retires. It explores the opportunities to maximise the benefits and their flexibility. These benefits include tax-free cash lump sums, pensions and drawdown pensions together with flexible drawdown pensions. The Practice Note also explains the position of qualifying recognised overseas pension schemes (QROPS) and transfers of retirement benefits that may incur the overseas transfer charge applicable from 9 March 2017. Benefits on retirement—general Since 6 April 2010, the payment of retirement benefits is generally only allowed from age 55 (the normal minimum pension age). There is no upper age limit by which retirement benefits must be taken. Individuals do not have to retire to receive benefits and not all of a member’s retirement benefits have to be vested at the same time, but may be taken in tranches (see below). From 6 April 2015, flexible drawdown has been available for members of defined contribution schemes to enable them to access as

Pensions analysis: In Philips v National Grid, the High Court (Mr Justice Lavender) allowed an appeal against a decision of the County Court giving summary judgment for the defendant on the basis that the claimant’s claims were out of time. The claimant brought claims in June 2022 for negligence and breach of contract in respect of the defendant’s failure to provide him with an ill-health pension following his dismissal in August 2002 ‘on the grounds of capability due to ill health’, and a continuing failure to obtain a proper medical opinion as to the claimant’s ability to work. The High Court considered that it was arguable that the defendant had a duty to obtain a fresh medical opinion within a reasonable time after a request made by the claimant in 2009. This decision will be of interest to pensions practitioners, but it will also be of interest to those who advise on limitation issues and the potential impact of a continuing breach of duty on time limits. Written by Elizabeth Grace, barrister at Outer Temple Chambers.

FORTHCOMING DEVELOPMENT: Through the Pension Schemes Act 2021, a secondary notifiable events regime is being introduced (under section 69A of the Pensions Act 2004) which will target certain employer-related notifiable events in relation to a DB scheme. This regime includes a requirement to copy in the trustees on their notification to the Pensions Regulator and provide both the trustees and the Pensions Regulator with an ‘accompanying statement’ (also known as a declaration of intent) setting out information on the notifiable event and how any detriment to the scheme is to be mitigated. On 8 September 2021 the Department for Work and Pensions (DWP) published a consultation on draft regulations which, among other things, detail the type of events that will be subject to the secondary notifiable events regime. The draft regulations propose that there should be three notifiable events: (i) the intended sale by the employer of a material proportion of its business or assets, in respect of which a decision in principle has been reached; (ii) the intended granting or extending of

Employer-sponsored pension schemes are essentially tax-advantaged savings vehicles whereby employers can make provision for the financial needs of employees and their dependants in later life. Unsurprisingly, the employer-employee relationship, as dictated by the employment contract and general law, plays an important role in pension scheme governance. The key aspects of that role are relevant to occupational pension schemes, but many of the points made will also apply to situations where pension provision is made by means of personal pension schemes to which the employer contributes. Dual nature of accrued pension rights under trust and contract law Accrued pension rights under an occupational pension scheme can typically be categorised as: • pension rights of scheme members (trust beneficiaries) arising under the trusts of the scheme, and • pension rights arising as contractual terms of the employment relationship between an employer and employee Members’ rights under the pension scheme trust are in principle enforceable against the scheme’s trustees through the courts in the same way as for a beneficiary under any trust. Indeed, in some

This year’s annual round-up reviews some of the most significant developments of 2017 and previews what is on the horizon for 2018. This includes new money laundering requirements, changes to the taxation of pension benefits, confirmation of the VAT treatment of investment costs, significant judgments on the duty of trust and confidence and discrimination, the General Data Protection Regulation (GDPR), a new restriction on the statutory right to transfer, the master trust authorisation regime, the government’s pensions white paper, and changes to the employer debt regime. Also included are updates on LexisNexis®’s content, including news of exciting developments from the past year and what is coming up in the next 12 months. Reviewing 2017 Scheme governance What happened? The final Money Laundering Regulations 2017, SI 2017/692 (MLR 2017), implementing the Fourth Money Laundering Directive, were published just in time to comply with the required transposition deadline of 26 June 2017. What are the key implications? Among other things, MLR 2017, SI 2017/692, reg 44 requires trustees of ‘relevant trusts’ to keep records

Law360: Sweeping pension reform is unlikely to be included in the first King's Speech under Keir Starmer's newly elected government, pensions provider Aegon said on 9 July 2024 as it predicted that existing changes in retirement savings policy might take centre stage.

Law360: The UK government's proposed fix for the spiralling number of small pension pots in existence risks creating 'more problems than it solves', retirement savings experts warned on 18 January 2024.

What is a pensions dashboard? A pensions dashboard is a service which will let people access their pension information in a single place online, in a clear, simple and secure form. A pensions dashboard seeks to bring together individuals’ pensions information from multiple sources, which can then be accessed at a time of their choosing. Effectively, at its most basic level the dashboard will be an electronic communication service by which pensions information can be requested by, and provided to, an individual using this service. The aim is to put individuals in control of their data and give them a greater sense of ownership of their pensions so as to better engage individuals in saving and planning for retirement. The government believes there are potential wider benefits of dashboards such as increased consumer choice through innovation and competition. An individual who uses a pensions dashboard is referred to in this Practice Note as a ‘dashboard user’ or ‘user’. What will the dashboard ecosystem look like? In the March Budget 2016, the government committed

Note: the term ‘Company’ refers to the target company that the purchaser will acquire and all other group companies (subsidiaries) that will be acquired. 1 Pensions 1.1 Please list: 1.1.1 all pension schemes (including those registered under the Finance Act 2004 or to be registered or any unregistered schemes) to which the Company is currently contributing or has previously contributed (or would be contributing but for a contributions holiday) or otherwise currently participates in or formerly participated in, and 1.1.2 all life assurance schemes or other such protection schemes (whether registered under the Finance Act 2004 or otherwise) 1.2 In relation to each pension scheme or life assurance scheme or other such protection scheme of the Company (including those registered under the Finance Act 2004 or otherwise) (each being a ‘Scheme’) please provide: 1.2.1 copies of all governing documentation, including copies of the trust deed and rules and other relevant documents, whether issued by the trustees of the Scheme or otherwise (such as explanatory booklets, announcements or other communications etc) 1.2.2 a list of all existing members of the Scheme (including those employees in a waiting

THIS PRACTICE NOTE APPLIES TO ALL PRIVATE SECTOR PENSION SCHEMES Business sales (also referred to as asset sales) involve a seller selling part, or all, of its physical business to a buyer. The buyer ends up assuming ownership of the contracts and assets specified in the business sale agreement. These contracts will typically include business contracts and the employment contracts for some, or all, of the seller’s employees (employees will transfer by law) as well as any plant, machinery, property, goodwill, etc. This Practice Note should be read in conjunction with the following Practice Notes: • Pension issues on a business sale—acting for the buyer • Pension issues on a business sale—acting for the seller • TUPE—what pension benefits should the transferee provide? The purpose of due diligence Due diligence is the process in which a buyer obtains information on the seller's business and the accompanying liabilities. Lawyers acting on behalf of the buyer are often given access to an actual or virtual data room which holds copies of documents providing information on

THIS PRACTICE NOTE APPLIES TO ALL PRIVATE SECTOR PENSION SCHEMES In a share sale, the buyer purchases the issued share capital of the target company. Through this acquisition, the buyer acquires all of the contracts and deeds, including pension scheme trust arrangements, entered into by the target company. Moreover, the acquisition of the target does not change the contracts of employment the target company has agreed with its employees: the rights of both the target company and its employees continue irrespective of the target's change of ownership. This Practice Note summarises the pensions aspects of the due diligence carried out by the buyer in a share sale. For a detailed review of the due diligence issues that may arise where the target company: • participates in a defined benefit (DB) arrangement, see Practice Note: Pensions due diligence in share sales—issues specific to DB schemes • participates or contributes to a defined contribution (DC) arrangement, see Practice Note: Pensions due diligence in share sales—issues specific to DC schemes The purpose of due diligence Due

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES This Practice Note considers the due diligence issues to look out for in a share sale, where the target company participates in a defined benefit (DB) scheme. In this Practice Note, references to the 'target company' include the subsidiaries of the target company (since they also transfer to the buyer's group on a share sale). For an overview of the pensions aspects of due diligence in a share sale, see Practice Note: Pensions due diligence in share sales—an introduction. For a detailed review of the due diligence issues which arise where the target company participates in, or contributes to, a defined contribution (DC) pension arrangement, see Practice Note: Pensions due diligence in share sales—issues specific to DC schemes. Due diligence and DB schemes—key issues Where the target company participates in a defined benefit (DB) pension scheme, there are numerous pension issues to consider. In most cases the DB scheme will remain in the seller's group. However it is possible