Pensions trustees' agenda covering key legal issues - September 2020

Review your data protection procedures to protect members from the implications of cyber crime.
Start your GMP equalisation project.
Be aware of the effect of the new company moratorium procedure under the Corporate Insolvency and Governance Act 2020.

Remain vigilant against cyber crime scams, including phishing attacks and ensure your trustee training is up to date;
Be COVID aware - review GDPR working from home policies for your advisers and check how trustees are keeping data secure;
Review and update your GDPR policies and procedures;
Ask administrators and advisers how they are dealing with data transfers to the US following the recent Schrems II judgment;
Remember Brexit – after 31 December 2020 UK will recognise transfer of data from EEA countries (EU + Norway, Iceland and Liechtenstein) but the European Commission may require additional safeguards;
Consider a data sharing agreement with the employer to help data transfers for buy-in/buy-out and GMP equalisation.

Ensure the data reconciliation is completed;
Review and clean up your common and conditional data;
Review the new guidance from HMRC on lump sum payments, annual allowance and lifetime allowance protection;
Remember the HMRC guidance does not cover conversion of benefits, the so-called “D2 option” – legal advice must be sought;
Watch out for the Lloyds 3 judgment on how to deal with transfers.

Read the latest HMRC guidance.

New moratorium procedure for companies, if company could be rescued as a going concern – can last for up to one year with creditor or court consent;
Moratorium does not trigger a s75 pension debt or a PPF assessment period, as it is not a qualifying insolvency event, so trustees could be in limbo;
New super-priority ranks ahead of trustee unsecured claims eg deficit recovery contributions;
Trustees’ votes as creditors can be disregarded if the court sanctions a restructuring scheme and other creditors agree (known as a “cram down”).

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