15th March 2016 Rosalind Connor in Pensions Expert re Barclays scheme probes impact of ringfencing
Rosalind Connor provided insight in Pensions Expert on Barclays assessment of which of its entities will participate in the bank’s UK Retirement Fund from 2026 due to the ring-fencing regulation that comes into effect from the 2013 UK Banking Reform Act.
Rosalind said the requirements are a “big issue” for banks and their pension schemes, with many turning to the Pensions Regulator for guidance to be “on the safe side” amid a highly complex terrain.
She said restructuring can happen one of two ways: either the scheme is split into two by a transfer of one part into another scheme, or it is segregated into two separately funded sections.
“The latter will need significant changes to the rules of the scheme,” she said.
The restructuring process must be completed by January 1 2026, five years after the ringfencing rules will first apply to the bank, Connor said.
“It obviously feels like a long time, but it is a long process and most banks appear to be looking at the issue already,” she said.
Read the full article in Pensions Expert here.
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. ARC Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.