October 2023 brings with it a fresh update on legal issues concerning trustees of DB and hybrid pension schemes. This monthly update is especially tailored to assist trustees in staying abreast with crucial developments in-between trustee meetings, as well as supplement the legal update item on your next trustee agenda. Note, there is also a separate DC-only briefing available.
This month, the highlight is a court ruling tackling amendments to contracted-out schemes. JD Supra reports that the High Court has recently evaluated the impact of a scheme that was previously contracted-out on the reference scheme test (RST) basis now failing to secure an actuarial assessment.
Reportedly, this verdict and its potential implications underscore the ongoing needs for DB and hybrid pension scheme trustees to remain updated on legal developments. Ultimately, these could significantly influence the design and operation of pension schemes, which in turn, might impact employers and beneficiaries alike.
More detailed insights and other relevant legal issues will be shared in the upcoming trustee meetings. Trustees are urged to consult the monthly legal updates and to delve into topics, such as this court ruling and its wider impact, during their meetings, to ensure sound governance and the sustained viability of their respective pension schemes.
The legal update is provided courtesy of Allen & Overy LLP.