Could Britain exiting the EU mean a reduction in the amount of red tape for schemes which have grappled with many changes in recent years? The severing of ties with EU lawmakers certainly has the potential to alter the legal landscape. What can we expect?

Georgina Beechinor, senior associate at Sackers, comments: “Much modern UK law has its roots in the EU and the position for pension schemes is no exception. However, given the focus in recent years on improving standards for workplace and personal UK pension schemes, it seems unlikely that existing provisions would be stripped out purely because of their origins in EU law.

“The extent to which UK legislation might continue in its current form in the event of a “leave” vote would depend on both the form of the relationship agreed between Britain and the EU, and the political appetite in the UK to dispense with or amend existing legislation. While some areas, including GMP equalisation and survivor benefits, could be targeted at an early stage, most changes would take longer to filter through.

 “With markets inevitably jittery in the run-up to the referendum, trustees and employers should ensure their ongoing integrated risk management processes are up-to-date. It is important that trustees monitor their scheme’s funding assumptions and investment strategy, check contingent asset reporting requirements and funding triggers, and keep an eye on the employer covenant. Trustees should also review their scheme’s hedging strategy, including counterparty credit ratings and the scheme’s ongoing exposure of derivative and swap contracts against the collateralised liabilities.”

“Whilst DC scheme members are responsible for their investment choices, trustees and employers should, particularly in the event of a “leave” vote, review investment options, including any default funds, to ensure these remain appropriate. Additional communications should also be considered to remind members of the importance of diversity in their investment choices. “At the moment, the state pension and healthcare rights of around two million UK expatriates living in EU countries are protected. Should Britain leave the EU, those benefits could be frozen, as is currently the case for British pensioners living in countries outside the EU where there is no reciprocal social security agreement under which state pensions are uprated.”