Atkin trustees, actuaries, consultants & administrators

Current issues - December 2020

RPI – Consider transfer values: With RPI being brought in line with CPIH from February 2030, trustees should consider the assumptions used in calculating transfer values and other scheme factors (such as commutation, early retirement, and late retirement as well as PIE and conversions). In particular, consideration will need to be made as to how to allow for the CPI/RPI wedge in the period up to 2030, whether the market implied rate of inflation both before and after 2030 can be used without adjustment and what inflation risk premium might be used both in the short and longer term.

Company accounting (and other valuation exercises) - lots to consider: COVID, the replacement of RPI with CPIH and the need to revisit historical transfers for GMP equalisation has, potentially, introduced significant additional complexity this year which can be taken into account in different ways. As always, it is important that any approach that is adopted is proportional and no more complicated than it needs to be.

Online SIPs – Central directory planned: Schemes that are required to prepare a Statement of Investment Principles had to make these available on a publicly accessible website by 1st October 2020. The Government now intends to make these available via a central directory.

Scheme Returns – Make sure you hold the 2020 Return: TPR is updating the system for submitting Scheme Returns which may mean that the previously submitted copies will not be available. All schemes are advised to ensure that they hold a copy of the 2020 Return as a reference.

Data Protection – Brexit considerations: GDPR will be retained in UK law at the end of the ‘transition period’ on 31st December 2020. For most trustees, of UK based schemes where data is held and processed within the UK, there is little further to do. However, trustees of schemes that transfer data to the EEA need to consider whether additional action is required to safeguard the data from 1st January 2021 as the scheme will need to comply with both UK and EU data protection regulations.

Season’s Greetings: Everyone at Atkin & Co wishes you a very Happy Christmas and a peaceful and prosperous New Year. We look forward to speaking to you (and perhaps even meeting in person!) in 2021.

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We enjoy working with the team at Atkin Trustees. They are easy to get along with and their technical expertise, coupled with a pragmatic approach, allows us to advise our mutual clients in a manner beneficial to all. The team draws on this wealth of experience to ensure clients get a first class service, provided in an efficient manner. This added value is something other larger organisations would struggle to provide.

Gavin Paul, Pinsent Masons