The Association of Consulting Actuaries (ACA), the Association of Pension Lawyers (APL), and the Society of Pension Professionals (SPP) have released a united statement about the Virgin Media verdict, urging the government to enact retroactive laws.
In June 2023, the High Court declared that a lack of actuarial confirmation would make relevant revisions to the regulations of contracted-out defined benefit (DB) pension systems null and void.
This decision was affirmed by the Court of Appeal in July 2024, with industry analysts warning that it might have far-reaching consequences for many DB schemes.
Since then, representatives from ACA, APL, and SPP have been in “regular communication” with the Department for Work and Pensions (DWP) to explore the concerns raised by the Court of Appeal verdict.
In an update on its work, the group revealed that it has been providing information to assist the DWP in understanding the negative effect of this verdict on business, as well as investigating the nature of any action.
“The working group continues to believe that the Secretary for State should make regulations that would, subject to appropriate safeguards, enable the validation retrospectively of any amendment that is held to be void solely because either a written actuarial confirmation was not received before the amendment was made, or where such a confirmation cannot now be located,” according to the statement.
“Quite what form such regulations could take, if a regulatory approach is agreed, is a matter that the working group is discussing with the department, with the working group refining its thinking as a result.”
The company said that it hopes to provide a further update in the new year.
Industry experts have already urged for “urgent” clarification on concerns raised by the Virgin Media and NTL case, and new data from the Pensions and Lifetime Savings Association reveals that several plans have already received member questions about the verdict.
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