By Mary Spencer, Partner at LCP
We dealt with Brexit issues as they came; and we never quite knew where we were with Coronavirus. We also awaited, with delays, further developments on many of the important issues facing pension schemes today – including the new funding code and single code of practice. But despite this, we can think of a few highlights where good progress was made:
Markets continued to be buoyant overall, with US equity markets setting record numbers of new highs. In this context, many pension schemes will be ending the year in a stronger position than they started and can think about the next stage of their journey.
We saw the first regulatory approval to a consolidator, Clara, awarded. This secures an additional option for schemes’ ultimate targets and could really help some schemes uncover a viable route to securing benefits that previously wasn’t there.
Key provisions in the Pension Schemes Act 2021 came into force from 1 October, meaning:
the largest of schemes passed through their first Climate Change related deadline, probably following months of intensive work (though the work doesn’t stop here…); and
the Pensions Regulator now has additional powers to ensure pension schemes are treated fairly by sponsors.
All in all, despite our expectations and best endeavours, it doesn’t feel like 2021 was the year things were fully resolved. So much so that the 2021 planner we created last January remains rather relevant as we begin 2022.
But that also means trustees continue to grapple with a huge and diverse range of issues this year.
And, when juggling so much, there’s always the risk that one of them “accidentally falls”. Read our Top 10 priorities for 2022 to make sure you don’t miss anything key.
Top 10 priorities for 2022 for DB pension schemes
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