News in brief – 1 March 2024

LCP has urged pension trustees to follow four ‘simple rules’ to ensure they are ready for changes to the Lifetime Allowance (LTA).

The LTA will be abolished from 6 April, and LCP noted that while many scheme members will see minimal changes, there could be material changes for some and there are a lot of technical changes that pension administrators will need to make. Trustees and pension managers were encouraged to check their pension schemes to see whether any benefits have a direct link to the LTA. Additionally, they should ask their administrator to let them know about any high net-worth retirements due to come up in the near future; check their administrators have updated their processes, communications and systems for the changes; and consider whether the changes create any new opportunities.

Hymans Robertson has launched a new strategic buyout framework to help defined benefit (DB) schemes looking to buyout.

The consulting approach and app aims to support schemes in building and implementing a cohesive buyout strategy and plan. The Plan, Aim, Check, Execute (PACE) framework looks to assist schemes aiming for buyout by using dynamic annuity pricing and integrating affordability, investment and due diligence considerations to build a robust plan. “DB schemes targeting buyout need a cohesive strategy and plan to get there, and sooner rather than later,” said Hymans Robertson head of scheme actuary services, Laura McLaren. “Our PACE framework helps schemes use the time they have in the most efficient way.”

ZEDRA and Knowa have announced a strategic collaboration in the development of new governance tools.

This collaboration aims to create a governance platform for ZEDRA’s pension clients that seeks to enhance scheme governance. A series of tools were designed for sole trustee governance and combine Knowa's AI-enabled knowledge, meeting packs, and collaboration tools with a series of proprietary governance applications to create an ecosystem that embeds good governance practices, particularly in response to The Pension Regulator's introduction of the General Code earlier this year. The collaboration introduces advancements in governance practices, focusing on efficiency and consistency to help organisations navigate complexities of pension regulation while fostering good governance practices.

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