Pensions: Pensions schemes August newsletter, Pension savings statements 2019/20 and more.

• Pension schemes newsletter 123 – August 2020
• Annual allowance – Pension savings statements for 2019 to 2020
• Plans for Britain’s pension schemes to lead on climate risk
• Over £30m reported as lost to pension scams as regulators begin new awareness campaign

Pension Schemes Newsletter 123 – August 2020

HMRC Pension Schemes Newsletter 123 covers the following:

• relief at source – annual returns of information for 2019 to 2020
• relief at source – APSS106 annual claims for 2019 to 2020
• migrating of pension schemes to the Managing pension schemes service
• annual allowance – pensions saving statements for 2019 to 2020

Issues of particular interest

Annual Allowance – Pension Savings Statements For 2019 To 2020

A reminder that pension schemes must issue pension savings statements for tax year 2019/20 by 6 October 2020. Statements must be issued to members who have made savings of more than the £40,000 annual allowance to the pension scheme and where the scheme has reason to believe a member is subject to the Money Purchase Annual Allowance and money purchase contributions to the scheme exceed £4,000.

A reminder that those that have exceeded their annual allowance for 2019/20 and do not have sufficient carry forward available from previous tax years will be subject to an annual allowance charge.

Plans For Britain's Pension Schemes To Lead On Climate Risk

The Government has announced plans to ensure pension providers are legally required to consider the risk of climate change on their investments.   

The plans, which are subject to a consultation, will initially require the largest 100 occupational schemes to publish climate risk disclosures by the end of 2022.

Following on from this, around 250 more schemes with £1bn in assets would have to meet the same requirements in 2023.

The proposals outlined in the Department for Work and Pensions consultation include:

• Schemes embedding the recommendations of the international industry led Taskforce on Climate related Financial Disclosures into their organisation – including on governance, strategy, risk management, metrics and targets.

• Scheme scenario modelling to analyse the implications of a range of temperature scenarios for a scheme’s assets.

• The requirement to report the greenhouse gas emissions of a scheme’s portfolio.

• Compelling schemes to publish their report on a website and to notify scheme members of how to find it.

The consultation period runs until 7 October 2020. 

Over £30m Reported As Lost To Pension Scams As Regulators Begin New Awareness Campaign

The Pensions Regulator (TPR) reports that more than £30m has been reported lost to pension scammers since 2017 according to complaints filed with Action Fraud. Losses of up to £500,000 were reported and TPR believe the number of victims is likely to be much higher as savers are failing to spot the signs of a scam and aren’t aware of how much is in their pension pot.

TRP report that football fans approaching retirement appear particularly vulnerable to scams with just 43% knowing how much is in their pot and 45% not knowing how to check if an approach about their pension is legitimate.

The TPR and the Financial Conduct Authority (FCA) have therefore decided to work with football commentator Clive Tyldesley in a campaign to try and raise awareness of pensions scams and prevent them.

The regulators recommend four key steps to protect investors from pension scams:

1. Don’t be rushed or pressured into making and decisions about pensions

2. Reject unexpected pension offers made online or over the phone

3. Check the Financial Services Register or call the FCA helpline to check a firm is authorised

4. Consider getting impartial information and advice.