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IORP II: what does it mean for UK pensions?

21 November 2018

The new directive on occupational pension schemes (IORP II) must be implemented in national law by mid-January 2019. UK pension schemes are already subject to most of the requirements under existing UK legislation. However, there are a few areas where schemes are likely to need to make changes, in particular:

  • pension benefit statements, which will have to be sent annually to all active and deferred members;
  • obligations for all schemes to have "key functions" in place, including internal audit and risk management;
  • requirements to adopt written policies on various matters, including risk management, internal audit and outsourcing;
  • a requirement to have a remuneration policy and to disclose publically relevant information about their policy;
  • greater supervision by national regulators (in the UK, the Pensions Regulator) of certain activities, including outsourcing, plus an obligation to notify the Regulator before certain functions are outsourced; and
  • a requirement that all schemes make their statement of investment principles (SIP) publically available on a website. This note considers some of these changes in more detail.

The government has recently issued two sets of regulations to implement some of the requirements of IORP II. This note gives more detail of the requirements set out in the recent regulations and of other new requirements which have yet to be transposed into UK law.

Click here to read the full briefing.

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