In light of the government triggering Article 50 to begin the process of the UK leaving the European Union, pension schemes sponsors and trustees have been told to “keep calm and carry on”.

Downing Street revealed pictures of Prime Minister Theresa May signing the letter last night, 28 March, and the letter has been hand-delivered to European Council President Donald Tusk by the UK’s permanent representative in Brussels Sir Tim Barrow.

It begins two years of talks between the UK and the EU on the terms of withdrawal allowed under Article 50 of the Lisbon Treaty. The UK voted to leave the European Union in a referendum held on the 23 June 2016, with those in favour winning 52 per cent to 48 per cent.

Commenting, Society of Pension Professionals European Committee chairman Tony Bacon said: “Our strong message to pension scheme sponsors and trustees, regardless of potential financial market turbulence during the two year negotiation period, is to ‘keep calm and carry on’.

“As indicated in our white paper last year, we expect there to be no immediate impact on UK pensions law and regulation. Indeed, looking to the longer term there is the prospect that some of the more worrying aspects of EU pensions regulation, such as unnecessarily costly reserving requirements and intrusive supervision from Europe may be averted.

“We hope and expect that the UK government’s negotiation representatives will keep a clear focus on the UK private pensions sector during the next phase of our withdrawal from the EU. The withdrawal process will present both opportunities and challenges for the providers of retirement income for the people of the UK. The SPP will continue to inform opinion and to support our members who have to navigate through these uncharted waters.”

Despite the triggering Article 50, political journalist Andrew Neil, yesterday, told trustees at a pensions conference that no “negotiations of substance” will begin until October, due to the upcoming EU elections.

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