Pensions agendaSpring clean your schemeDate: April 2013 Advisers: Eversheds LLP1 Pensions Regulator’s new objective – In the 2013 Budget the Chancellor announcedthat the Pensions Regulator will be given a new objective. The precise wording is still tobe confirmed but the Chancellor said that, in future, the Regulator would have to haveregard to the “growth prospects of employers”. Read more.Action: Employers and trustees should consider how this may impact theirscheme’s funding arrangements and whether they should factor the newobjective into current negotiations.2 Abolition of DB contracting-out – The Chancellor also confirmed in his Budget speechthat the introduction of the single-tier state pension (and consequently the abolitionof DB contracting-out) will be brought forward to April 2016. Private sector employerswill be able to amend their scheme to offset the increase in their national insurancecontributions resulting from this. Read more.Action: Employers should assess how the abolition of DB contracting-outwill impact them and consider what, if any, changes they plan to make totheir scheme.3 Downgrading of RPI – In a surprise move, the UK Statistics Authority has announcedthat the Retail Prices Index (RPI) will no longer be designated as a national statistic, onthe basis that it does not meet international standards. This has created uncertainty overwhether RPI remains a suitable index for determining pension increases and revaluationunder DB schemes.Action: Trustees and scheme sponsors should take advice on how thedowngrading of RPI impacts their scheme.4 DC Governance – Auto-enrolment means that the governance of DC schemes is inthe spotlight now more than ever. The Pensions Regulator has recently issued a draftCode of Practice and regulatory guidance on DC governance, which includes 31 qualityfeatures that it would expect to see in a good quality DC scheme.Action: Trustees of DC schemes and pension providers should review theirschemes to ensure that they meet the requirements set out in the Regulator’snew Code of Practice and regulatory guidance.5 New Fair Deal guidance – HM Treasury is expected to finalise its new Fair Dealguidance shortly. If the new guidance follows the draft issued last November, privatesector employers will no longer be able to provide broadly comparable schemes tonewly transferred staff, who will instead have to be given continued access to therelevant public service scheme.Action: Private sector contractors and public sector bodies covered by FairDeal need to consider how the new guidance will impact future outsourcingsand re-tenders. Read more.