Quarterly Pensions Watch: Autumn Budget – speculated changes fail to emerge
Quarterly Pensions Watch: Autumn Budget – speculated changes fail to emerge
12 Nov 2024
What you need to know
- The Chancellor of the Exchequer delivered her Autumn budget to Parliament on 30 October 2024. There had been much speculation around national insurance on employer pension contributions or changes to pensions tax relief, but these were not included. The most significant change for pension schemes was the announcement that most unused pension funds and death benefits would be brought into the scope of inheritance tax from 6 April 2027. Attention now turns to the Mansion House speech on 14 November where it is expected that the Chancellor will provide an update on the pensions review.
- Improving outcomes for defined contribution (DC) scheme members continues to be a key focus, as we expect an interim update of the Government’s pensions review. The pensions review aims to boost investment, increase pension pots and tackle waste in the pensions system. Alongside this, a consultation from the Financial Conduct Authority (FCA) is underway on detailed rules and guidance for the new value for money (VFM) framework for savers invested in DC schemes.
- The new funding and investment strategy (FIS) regulations apply to all valuations of defined benefit (DB) pension schemes with effective dates on or after 22 September 2024. Trustees and sponsoring employers with upcoming valuations are encouraged to engage with their advisers early on to initiate dialogue between all parties and plan the valuation process given the extensive new requirements.
- On 23 September 2024, The Pensions Regulator (TPR) published an interim response to its March 2024 statement of strategy consultation. In this response, TPR has provided some helpful guidance on its intended approach, as well as details of the updated data requirements that schemes must provide after agreeing their statement of strategy reporting requirements.