The holidays are fast approaching and as the nights get longer and the days get colder and it is almost time for some well earnt time off for the industry, now is time to reflect on what has been a very busy year for pensions.

All the way back at the start of the year was the publication of the Department for Work and Pensions' (DWP) consultation on the draft regulations for pensions dashboards.

This outlined what was required of pension schemes and dashboard providers for the introduction of dashboards, with the aim of having 99 per cent of pension memberships included by the end of September 2024.

Following the publication of the consultation, the Pensions Dashboards Programme (PDP) published updated standards for pensions dashboards including its data usage guide, design standards scope, reporting standards scope, technical standards and a guide to the code of connection.

February was a significant month not just for the pensions industry but for the whole world as it saw the invasion of Ukraine by Russia. Following this invasion, pension schemes (as well as other financial organisations) took steps to offload and halt any further investments in Russian-linked assets.

The end of March, meanwhile, brought with it the revelation that the defined benefit (DB) pension scheme funding ratio hit its highest levels for nearly 15 years, increasing by 3 per centage points over the month to 111.4 per cent. This was the highest level since June 2007, up from 108.4 per cent at the end of February, an increase that was attributed to an increase in bond yields.

April saw further updates on the progress of pensions dashboards, as the PDP announced that it was on schedule with the development of pensions dashboards against the timetable it set out in October 2020.

This momentum has ramped up since, with the start of summer marking a significant event as the first commercial pensions dashboard to be successfully connected to the PDP central architecture.

Moneyhub’s dashboard was the first commercial dashboard to be successfully connected to the architecture, in addition to the MoneyHelper non-commercial dashboard and the Money and Pensions Service (MaPS).

July was characterised by governmental turbulence, however, something that the pensions industry could not escape as Guy Opperman resigned as Pensions Minister, only to be reinstated soon afterwards.

Trains then dominated the headlines in August as rail and London Underground workers went on strike amid continuing disputes over pensions, pay, working conditions and job cuts. Members of the Rail, Maritime and Transport (RMT) union and rail workers in the Transport Salaried Staffs’ Association (TSSA) staged the walkout following similar industrial action in June.

Yet the biggest news of the autumn was, of course, the tragic passing of Queen Elizabeth II and members of the pensions industry were quick to pay their respects to the departed monarch.

The PLSA made the announcement that their Pension Attention campaign, originally scheduled to run at the start of month, was to be delayed to properly mark the period of national mourning. Pension Geeks similarly postponed Pension Awareness live shows and some pension and investment companies put the publication of research and reports on hold.

Although it was a sombre time, it was no less busy than the rest of the year as the Bank of England (BofE) announced interventions into the gilt market following ex-Chancellor, Kwasi Kwarteng’s, emergency mini-Budget prompting a “seismic” response in the gilt market, with intense sales prompting “huge demand” for cash to support derivative structures popular amongst pension funds.

Governmental change continued in October as Mel Stride took over the role Secretary of State for Work and Pensions from Chloe Smith after her short tenure in the position.

Following this, the DWP also confirmed the appointment of the third pensions minister of the year as MP for Sevenoaks, Laura Trott, was appointed to the role, taking over from Alex Burghart, who moved to the Cabinet Office.

Also announced was the launch of an inquiry by the Work and Pensions Committee (WPC) into DB pension schemes with liability-driven investments (LDI), after the volatility in the gilt markets and subsequent interventions from the BofE.

In particular, the WPC stated it was looking for evidence of the impact of the rise in gilt yields in late September and early October on DB schemes, the impact on pension savers, whether in DB or DC arrangements, and whether LDI is still “fit for purpose” for use by DB schemes.

Inquiries into LDI have continued since, with The Pensions Regulator, Financial Conduct Authority, and BofE providing evidence to a range of parliamentary committees, alongside a number of industry organisations and experts, who sought to explain how LDI worked, and what prompted the recent liquidity issues faced by defined benefit (DB) schemes.

TPR have also since published the long-awaited draft Funding Code of Practice for defined benefit (DB) pensions schemes, alongside consultations on the code and its proposed fast-track and twin-track regulatory approach.

Having started the year with the publication of the DWP's draft dashboards regulations, it seems fitting that this year ended with the Pensions Dashboards Regulations 2022 officially coming into force from 12 December, with many in the industry already setting their sights on the work that awaits in the New Year.

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