The trustees of defined benefit pension funds could receive more than £100bn in deficit reduction payments from their corporate sponsors over the next three years, or 13% of UK corporate cash holdings, according to a survey of more than 170 trustees and pension professionals, representing...
A rise in corporate restructuring due to challenging economic conditions will mean employers and trustees must be more vigilant in managing the employer covenant available to their pension scheme, according to the latest Insight report from Punter Southall Transaction Services (“PSTS...
Defined benefit pension liabilities on the schemes of 40 of the UK's largest charities total almost £5bn, as calculated on an FRS 17 basis, according to the May edition of Charity Finance magazine. Backing these liabilities are pension scheme assets of around £4.2bn, resulting in an...
Schemes must be very careful when dangling the carrot of enhanced transfer values in front of members warns Martin Palmer, Friends Life
Since their inception, enhanced transfer values (or ETVs) have caused somewhat of a furore in the industry. Controversial because of the suggestion that they can exploit a lack of understanding of exactly what is being given up, ETVs – and the ways in which they are offered – remain one...
Small does not have to be expensive when it comes to longevity risk suggests Nigel Barlow, Partnership
The principle of longevity risk will, at some point, have been the bane of most readers’ lives; yet thousands of small defined benefit (DB) pension schemes, representing tens of thousands of members are unaware of ways to understand longevity better.
Many schemes are paying more because they...
Maladministration is in no one’s best interest – and it costs more – argues Lesley Carline, PASA
The Pensions Administration Standards Association (PASA) is the new kid on the block for ensuring that members receive the best service and pension provision from their scheme and the administrator. With the best will in the world, can we currently say with confidence that those who look after...
Over one million members of defined benefit (DB) pension schemes will receive their pension from insurance firms by 2017 as more companies and trustees de-risk their pension liabilities using insurance, according to the fifth annual LCP Pension Buy-ins, Buy-outs and Longevity Swaps report.
The...
Seven leading bodies represented on the Occupational Pension Schemes Joint Working Group, who liaise with Government on workplace pension policies, have written a joint letter to the Pensions Minister opposing the way in which the Government is proposing that pension schemes equalise guaranteed...
A 35 year old joining a defined contribution (DC) pension fund today may have to contribute more than ten times the annual contributions of his colleague in a defined benefit (DB) pension fund to build an equivalent pension at retirement, according to figures published today (5 April) ...
More than 1 million members of defined benefit (DB) pension schemes will have their pension benefits provided by insurance companies by 2017 as increasing numbers of companies and trustees de-risk their pension liabilities using insurance, according to the fifth annual LCP Pension Buy-ins, Buy-outs...
The average amount paid from defined benefit (DB) schemes will reach the highest ever level this year and the amount will fall thereafter according to the Department for Work and Pensions (DWP).
DWP statistics show that the average amount paid from defined benefit (DB) schemes will reach the...
A recent high court judgment, Danks v Qinetiq Holdings, may make it easier for occupational pension schemes to change from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI) as the measure for increasing pensions in payment and revaluing deferred pensions, even for benefits relating...
Pensions for men and women were supposed to have been equalised in the early 1990s, following a number of cases in the European Court.
It is extremely difficult to compare men’s and women’s pensions, as the details are, understandably, highly confidential, and the data is rarely...
Reviewing the employer covenant is a serious undertaking. Financial journalist, Allison Plager reports
Knowledge is power and trustees are undoubtedly required to know a lot about their pension scheme to perform their duties effectively.
One area that has been growing in significance is the employer covenant. The Pensions Regulator website contains some useful guidance on what it expects trustees of...
Simon Kew, Jackal Advisory, and Dr Tristan Mander, Ward Hadaway, on how trustees can – and must – identify the statutory employer
Finding out which employer is legally obliged to pay for which part of an occupational pension scheme can be full of surprises.
On the one hand, the trustees of a scheme may find that the employer they have been counting on is not legally “on the hook” for part or all of the scheme...
Sarah West, Capita Hartshead, assesses the pros and cons of full service vs. single service provision
To borrow a line from Bob Dylan, “the times they are a-changin’”.
Defined benefit schemes (DB) continue to close to future accrual or change their shape and the implications of auto-enrolment are starting to tax the minds of employers and trustees minds.
Perhaps now is the time to...
Following the approval of the European Commission of UK plans to relieve the Royal Mail Group (RMG) from excessive pension costs relating to its past monopoly position and to provide RMG with restructuring aid consisting of a debt reduction of ₤1,089m the Royal Mail pension scheme assets and...
Chancellor George Osborne announced in the Budget that a simplified flat rate state pension would be introduced at some time after 2015. The implication of his announcement is that contracting-out will no longer be possible after this change.
Commenting on the Chancellor’s announcement, John...
The Trustee of the Uniq plc Pension Scheme has received its withdrawal notice from Pension Protection Fund (PPF) assessment.
The Pensions Regulator (TPR) has today issued a report explaining the role it played in the process. Its executive director for defined benefit regulation, Stephen...
The Financial Services Authority (FSA) today published a consultation paper outlining proposals to change the way pension transfer analysis is carried out. The FSA estimates that this will prevent an under-valuation of benefits of up to £20bn.
The proposed changes will clarify and update the...
