Salary-related scheme Definition

GLOSSARY

What does Salary-related scheme mean?

An occupational pension scheme that provides benefits based on accrual rate, pensionable service and pensionable salary.

Also known as a defined benefits scheme; it can involve basing a pension on final salary, career average or some other system.

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Cross-border pension schemes before IP completion day

Brexit revocation of the cross-border pension scheme regimeAs a result of Brexit, the UK’s cross-border pension scheme regime became obsolete with effect from IP completion (11pm on 31 December 2020) and thus ceased to apply to UK schemes on and from that date. This was achieved through the Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019, SI 2019/192 which revoked the following UK legislation on IP completion day:•sections 287–295 of the Pensions Act 2004 (PeA 2004), and•the Occupational Pension Schemes (Cross-border Activities) Regulations 2005, SI 2005/3381 (the Cross-Border Regs)Note that the Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019, SI 2019/192 were originally drafted on the basis that they would come into force on ‘exit day’ (ie 11pm on 31 January 2020), but a provision of the European Union (Withdrawal Agreement) Act 2020 (in the form of Schedule 5, para 1) had the effect of postponing this until IP completion day.Importantly, cross-border pension schemes continue to operate across the EU and the European Economic Area (EEA)...

Cross-border pension schemes before IP completion day

Cross-border pension schemes before IP completion day Brexit revocation of the cross-border pension scheme regime As a result of Brexit, the UK’s cross-border pension scheme regime became obsolete with effect from IP completion (11pm on 31 December 2020) and thus ceased to apply to UK schemes on and from that date. This was achieved through the Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019, SI 2019/192 which revoked the following UK legislation on IP completion day: • sections 287–295 of the Pensions Act 2004 (PeA 2004), and • the Occupational Pension Schemes (Cross-border Activities) Regulations 2005, SI 2005/3381 (the Cross-Border Regs) Note that the Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019, SI 2019/192 were originally drafted on the basis that they would come into force on ‘exit day’ (ie 11pm on 31 January 2020), but a provision of the European Union (Withdrawal Agreement) Act 2020 (in the form of Schedule 5, para 1) had the effect of postponing this until IP completion day....

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What trustees must know about Virgin Media pension case (Virgin Media v NTL Pension Trustees)

Law360: On 16 June 2023, the High Court of England and Wales handed down judgment in Virgin Media v NTL Pension Trustees.

Guaranteed minimum pensions and equalisation Part 2—transfers (Lloyds Banking Group Pension Trustees v Lloyds Bank)

Pensions analysis: This further judgment answers some of the questions left unanswered by the initial judgment, and accordingly brings further clarity to trustees and employers grappling with guaranteed minimum pension (GMP) equalisation issues. Of most significance is the judge’s decision that where a member exercised the statutory right to take a cash equivalent and a failure to equalise led to an underpayment when the transfer was made, the trustees were in breach of duty and cannot now rely on the statutory discharge provisions in section 99 of the Pension Schemes Act 1993 (PSA 1993). The member is not time-barred from enforcing the consequent obligation to make a top-up payment to the receiving scheme and the trustees may belatedly choose to perform that obligation. The reasoning will apply equally to underpayments on transfer for any other reason. A different conclusion was reached in relation to bulk and individual transfers made under powers in relevant scheme rules. Although that element of the decision was based on particular provisions, similar wording is likely...

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