Helen-Mary Finney, Aon Hewitt, explains the amended regulations on employer debts in multi-employer pension schemes
Corporate restructuring can be inhibited by the rules which operate when an employer leaves a multi-employer defined benefit pension scheme.
In April 2010, easements were introduced to the employer debt regulations, to help participating employers manage debts that arise under s75 of the Pensions...
Managing conflicts of interest is an important issue for scheme actuaries explains Rosslyn Scott, Mercer
Conflicts of interest may be back on trustee and employer agendas as a result of a consultation paper issued by the Actuarial Profession’s Working Party in October 2011.
The paper proposes introducing a new professional standard preventing actuaries from advising an employer in certain...
Paul McGlone, Aon Hewitt, has some tips on plotting the investment route your scheme should take
In a jargon filled industry, it is no surprise that new phrases continue to be invented. The “flight plan” is a recent one – so recent, that there is still no consensus around the phrase, with alternatives including “glide path” and “road map”.
At the core...
Pensions Act 2011 and state pension age
The Pensions Act 2011 received royal assent on 3 November 2011 following extended parliamentary debate and some modifications from the original Bill. The Act amends the timetable for increasing the state pension age (SPA) to 66, so that the increase will occur faster than previously set out in...
Auto-enrolment and state pension age changes become law as the Pensions Act finally receives the royal assent, says John Wilson, JLT Benefit Solutions
The changes to state pension age (SPA) have been extensively reported in the media and are the main reason that the Pensions Bill took ten months to reach the statute books. So, to avoid further prevarication, the practical impact of the Act in this area is succinctly shown in Tables 1 and 2.
In...
Are your DC scheme members getting sufficient support at retirement? asks Saqib Hussain, PricewaterhouseCoopers.
The issue of whether members retiring from defined contribution (DC) schemes are receiving adequate support is once again becoming a hot topic in the DC world. Recent research by PricewaterhouseCoopers has shown that pensions arising from DC contributions are estimated, in some circumstances, to be...
Phil Daniels, Capita Hartshead, on how to check if your scheme has got the right qualifications.
By now, employers should be aware that the workplace pension reforms introducing auto-enrolment come into effect from October 2012. The government recently announced that the start for businesses employing between 50 and 3,000 employees would be delayed and that firms of up to 50 employees will not...
The Pension Regulator clarifies the role of DC trustees
The Pensions Regulator’s latest statement for trustees sets out some of the key differences between defined contribution (DC) and defined benefit (DB) schemes and clarifies the role of DC scheme trustees. In its statement, the Regulator reminds trustees of their duties under trust law and...
Wendy Hunter and Sarah Macguire, Squire Sanders Hammonds, explain how to set about recovering overpayments of pension benefits.
The overpayment of benefits may occur in a number of circumstances which are often beyond the control of pension scheme trustees, for example, due to an administrative error or where there is a delay in notification of a member’s death.
Pension scheme trustees have a duty to protect the...
Reviewing your advisers need not be a long and painful process and can benefit everybody suggests Ellen Kelleher, PricewaterhouseCoopers
Continuing changes in legislation, scheme closures, increasingly complex investment structures and challenging proposals from employers (ETVs – enhanced transfer values)/PIEs – price increase exchanges) etc mean that trustees are requiring broader types of advice and are relying on...
Ken Anderson, Xafinity, explains how a well structured master trust can give high levels of support and protection to members.
The Pensions Regulator (TPR) has stated that correctly structured master trust arrangements have the potential to deliver good member outcomes very effectively. But what does “correctly structured” mean and are all master trusts the same?
In a recent review, TPR identified six...
PPF draft levy determination for 2012/13
The Pension Protection Fund (PPF) has announced that its levy estimate for 2012/13 is £550m, the lowest levy to be set since its introduction. The reduction from the £600m target in 2011/12 reflects the improved funding position of the PPF as well as the move to the Consumer Prices...
Andrew Hoddinott, PricewaterhouseCoopers, explains the consequences for workplace pensions of the removal of the default retirement age.
Since 1 October 2011, employers have not been permitted to force employees to retire at age 65 (or any other age for that matter) unless this can be “objectively justified as a proportionate means of achieving a legitimate aim”.
Examples of “legitimate aims” outlined by...
Know your staging date as the first step in preparing for the challenge of auto-enrolment advises John Foster, Aon Hewitt.
When we carried out the last annual Aon Hewitt “Benefits & Trends” survey, we were surprised to find that 60% of UK businesses were not planning pension changes, despite the impending auto-enrolment and new employer duties regulations.
A few months on, and – hopefully...
The Regulator’s statement on identifying a scheme’s statutory employer
The Pensions Regulator (TPR) has always stressed to trustees the importance of identifying who has a legal obligation to support the scheme. To reinforce this, TPR has issued a statement which provides information and guidance for trustees on identifying the statutory employer (see Box). From...
James Berkley, PricewaterhouseCoopers, on protecting your scheme in a corporate transaction
Post-credit crunch, much has changed in the type and structure of corporate transactions. The Pensions Regulator’s approach has also evolved. Protecting your scheme has become more complex.
More corporate transactions mean it is ever more important that trustees know how to protect the...
The framework for auto-enrolment is now largely in place explains Helen-Mary Finney, Aon Hewitt
In 2012 major changes to the pensions landscape will start to be introduced that will eventually impact on every employer, regardless of size. Not only will employers be legally required to automatically enrol eligible jobholders into a qualifying pension scheme, they will also need to make...
Vanessa Wells, Eversheds, considers the consequences for schemes of the imminent demise of the default retirement age
1 October 2011 is fast approaching and, with it, the complete abolition of the default retirement age (DRA).
What is changing?
Before 6 April 2011, employers could terminate employment for reason of retirement at age 65. The only conditions were for employees to be consulted beforehand and...
The framework for auto-enrolment
The Department for Work and Pensions (DWP) is consulting on draft regulations designed to complete the auto-enrolment regime that comes into force in 2012. The consultation, which broadly reflects the earlier recommendations of the 2010 Making Automatic Enrolment Work (MAEW) review, closes on 11...
Lorna Buckland, Linklaters, details some practical things for schemes to think about when it comes to dealing with scheme pays
With effect from April this year, the annual allowance reduced substantially from £255,000 to £50,000 a year, bringing many more members within its scope. In some circumstances, a member who incurs an annual allowance charge can take steps to make his or her pension scheme directly...
