Key issues for your trustee agenda

• Speak to us to understand what the recent appeal in Virgin Media Ltd v NTL Pension Trustees II Ltd means for you. The Court of Appeal upheld the High Court’s 2023 decision, which means that some scheme amendments, if made without the required actuarial confirmation, could be invalid.

• While an appeal to the Supreme Court or hearings on any further aspects are now extremely unlikely, we are taking part in the industry’s ongoing conversation with the DWP about a potential legislative solution.

• In the meantime, see our Insight for a brief summary of the case, its implications, and practical next steps.

• With connection dates now heading fast towards us, ensure your dashboards preparation is on track. As TPR warns, trustees are ultimately accountable for dashboard compliance, and must not simply assume that other parties have everything in hand. Schemes should have robust governance in place to track progress, manage risks, and ensure data quality.
• Are you up to date with recent publications? TPR released refreshed dashboards guidance, with some significant updates and clarified expectations, in mid-December; the PDP issued updates to its data standards, reporting standards and code of connection in November; and additional PASA guidance was shared.
• TPR reminds schemes that they need to be alert to developments as they happen, and to liaise regularly with relevant third parties. TPR’s recent ‘hot topic’ publication covers how trustees should be working with advisers, providers and administrators to meet their duties. Further TPR articles, and design standards, are expected early in 2025.

Changes to the DB funding and investment regime came into force on 6 April 2024, and broadly take effect for valuations from 22 September 2024 onwards. DB trustees must put a long term funding and investment strategy in place, and have a statement setting out that strategy (amongst other matters). TPR’s consultation on the form and content of the statement of strategy closed on 16 April 2024.

TPR’s revised DB funding code (plus accompanying guidance and ‘Fast Track’ parameters) is expected to be laid in the summer and in force by 22 September. A consultation on covenant guidance will follow ‘later in the summer’.

ACTION: Schemes should ensure they are fully up to speed with the changes, and stay on top of the further releases. See our Insight for further detail.

• Your work to comply with TPR’s ‘General Code’ expectations should be underway, analysing your current governance standards, and moving towards being able to document the first ‘own risk assessment’ where and when relevant.

• Ask about our Pensions Governance Hub that helps schemes assess, comply and maintain compliance with the new Code.