The Pensions Regulator (Regulator) has issued a statement on the UK’s exit from the European Union. The statement is aimed primarily at trustees of UK occupational defined benefit (DB) schemes and confirms that the Regulator does “not expect the UK’s departure from the European Union (EU) to have a significant effect in respect of the legislative basis under which schemes operate or trustees’ ability to continue to administer their scheme effectively.” The Regulator considers that is the case in both a deal and no deal scenario.
In terms of the steps trustees should be taking to prepare for a no deal scenario, the statement recommends that trustees should, if they have not done so already, review any actions and contingency plans which have been identified in a no deal scenario. The Regulator also stresses the importance of maintaining continuity in respect of the payment of benefits in a no deal scenario. It recommends that trustees familiarise themselves with DWP’s guidance on the payment of occupational pension benefits to EU citizens in the UK and UK nationals in the EU. Broadly, this confirms the DWP’s view that that there is nothing in UK pensions legislation which would prevent trustees of occupational pension schemes from continuing to make payments to UK nationals in the EU in a no deal scenario.