Press Releases

“We look forward to clarification from The Pensions Regulator on a number of areas in the new consolidated Code of Practice, particularly in the interaction between the requirement to demonstrate an Effective System of Governance and the annual requirement to report on the ‘Own Risk Assessment’ (ORA). The ORA as currently framed is a governance review of key policies and processes which are part of Trustee risk controls and which would be covered in any assessment of effective governance."

In the first five months of 2021, there have been much lower volumes of buy-ins and buy-outs than were expected by the insurers according to analysis by Hymans Robertson. Due to this quieter period there is likely to be strong price competition this year; schemes considering buy-in should move quickly to take advantage of this recommends the leading pensions and financial services consultancy.

Commenting in response to DWP’s consultation Pension scams: empowering trustees and protecting members, Peter Summers, TPA Head of Clients, Hymans Robertson says:

“We welcome today’s consultation on combatting Pensions Scams from the Department of Work and Pensions. We firmly believe that anything that can further protect pension scheme members from scams, and the corresponding physical and emotional fallout, can only be a positive thing. We remain cautiously optimistic on the consultation and look forward to reviewing further details on the proposed legislation as it emerges.”

It is now known that RPI will trend down to CPIH from 2030 following the Government’s announcement last November, however, market implied RPI does not reflect this expectation with no noticeable trend down predicted in 2030. This indicates that investors are currently paying a significant premium to hedge inflation, potentially of around 0.5 per cent per annum claims the leading pensions and financial services consultancy.

“Auto Enrolment has been an undoubted success and the increase of those contributing to a workplace pensions scheme from 20% in 2012 to nearly 80% in 2020 is testament to that. This is an important step in encouraging people to save more for the long term and think about their financial wellbeing. The fact that this has levelled off isn’t a surprise but work needs to be done to increase participation further, especially in those ages that fall below the edibility criteria and for those, especially women, in part time jobs where participation levels are much lower."

Schemes rushing to meet the June deadline for CMA compliance on the retender of Fiduciary Managers could cut corners leading to poorly negotiated fees and inappropriate mandates, warns Hymans Robertson.

Trustees making retender decisions solely based on time pressures could risk undertaking the process without a full commitment leading to poor outcomes for schemes. This means the assessment of the mandate and strongly negotiated fees may not be done thoroughly, claims the leading pensions and financial services firm.

Commenting in response to TPR’s Consultation on its Approach to the Investigation and Prosecution of the New Criminal Offences, Alistair Russell-Smith, Head of Corporate DB, Hymans Robertson, says:

“The approach set out by TPR appears to be broadly consistent with the policy intent to increase the deterrent for reckless conduct in relation to DB schemes, rather than to fundamentally change corporate norms or accepted standards of corporate behaviour. It is likely to increase the need for corporates to have a clearer audit trail of their decision making and rationale - it will force the DB scheme higher up the corporate agenda."

Hymans Robertson is launching the LGPS’s first interactive online learning academy, enabling LGPS Committees and Pension Boards to undertake all their general training needs. The new platform provides access to all the learning modules Committee and Boards are expected to undertake in one centralised hub for the first time. It is also suitable for some Fund officer training. The online learning academy will be easily accessible, cost effective and available on demand to enable LGPS Committee and Boards to meet their knowledge and training requirements at a time and location convenient to them.

Hymans Robertson, the leading pensions and financial services consultancy, has appointed Philip Pearson as Head of LGPS Investment. Philip is a senior investment consultant who has helped to develop client consulting and strategic focus on the LGPS since joining the firm and brings over 20 years of investment experience to the role.

Commenting on the DWP Consultation incorporating performance fees within the charge cap, William Chan, Head of DC Investments, Hymans Robertson says:

"We welcome the DWPs consultation on performance fees within the charge cap as our main priority has always been the delivery of good long-term outcomes for members. We believe there are attractive opportunities in private markets and illiquid assets to support this goal, but are worried that the direction of travel in terms of regulation may prohibit, rather than promote, access to these markets which can enhance value."

Commenting on today’s TPR Climate Change Strategy, Lisa Deas, Actuary says:

“We welcome The Pensions Regulator’s climate change strategy providing insight on the guidance and support trustees can expect over the next few years to help them manage climate risk and opportunities effectively. In particular, we welcome TPR’s plans to bolster the climate change content on the trustee toolkit which we had advocated in our response to the DWP’s consultation on ‘Taking action on climate risk: improving governance and reporting by occupational pension schemes’."

Only a quarter (27 per cent) of DB pension members feel very confident about making retirement decisions while over a third of DB members don’t feel knowledgeable about their DB pension, according to a new survey by Hymans Robertson in association with like minds.