Pensions Management - the magazine for pension & investment industry professionals
Back issues » 2005 » March
Financial education – help or hinder?

This month’s PM includes a roundtable discussion on the individual pensions market (see pages 41-48). Although the debate is largely concerned with self-invested personal pensions (Sipps), many of the issues raised by the panellists apply to pensions as a whole. The changing demographics of the UK, the switch from a savings culture to consumption, and public demand for greater transparency in financial products are all general trends in pensions. As is the lack of confidence among the public, caused by the bear market and various financial and pensions scandals from Maxwell to mis-selling of endowment mortgages or split cap funds.

ACA, IMA clash over proposals for unbundling advice to schemes

In their responses to the interim report of the Morris review on the actuarial profession, the Association of Consulting Actuaries (ACA) and the Investment Management Association (IMA) have clashed over the unbundling of actuarial advice to schemes.

High Net Worth gets a relaunch

Financial Times Business, the publisher of Pensions Management and Pensions Week, has relaunched High Net Worth as a quarterly magazine.

Eight new property funds hit the market in February

February has been a bumper month for property launches with no fewer that eight new funds hitting the market.

Prevention is better than cure

Stories about pension schemes going bust and leaving their members high and dry have had an enormous impact, but the creation of a proactive regulator, that has the power to act and the legal strength to enforce its judgements, will turn the tide, says Alan Johnson

Gilchrist: wind-up not inevitable but likely

Allders faces PPF uncertainty as break-up sale looms

Hopes that the Allders retail group could be sold as a going concern and that the Allders Pension Scheme could be saved from wind-up look to have disappeared as it was announced that the group would be broken up and each of the sites would be sold individually.

Marlborough Stirling’s future unclear

The future of Marlborough Stirling (MS) remains unclear since the financial services technology company put itself up for sale at the end of 2004.

Investment briefs
Lecturers join protests over pensions cuts

Lecturers at Britain’s universities and colleges could be the latest public sector workers to join the protests over proposed cuts to their pensions.

Schroders appoints two

Schroders has made two new appointments to its institutional business team as part of its drive to provide more solutions based advice.

News in brief
Waking the working dead

I promise you I’m not making this up, but I’ve just read in the New York Times about a guy who was dead at his office desk for five days before anyone noticed. Really. Evidently this bloke, George Turklebaum, who was a proof-reader at a New York firm, died of a heart attack on a Monday in the open plan office he shared with twenty three other workers, but no-one noticed until the Saturday when a cleaner tried to ask him why he was working at the weekend. I mean, how bad’s that?

Ashton: an opportunity for companies to examine their level of pension provision

A-day’s approach leads to review of boardroom pay packages

The approach of A-day is highlighting the inequalities of pension provision for executive directors as more attention is paid to the pension element of remuneration packages, says a new report.

Reconciling pensions and age discrimination

As pensions are designed to provide benefits in old age, they are very much ageist. Hopefully, the older the individual when they retire, the greater the pension they get.

Salt: expresses concerns over future governments

Political fears hold back HNW investors

Despite the expectation that simplification will make pensions more transparent and attractive to investors, there are

New death benefit flexibility under Finance Act 2004

The Finance Act 2004 will increase flexibility for death in service benefit provision. Lump sums up to the lifetime allowance can be paid free of tax under the new tax regime. Dependants’ pensions will not be tested against the lifetime allowance, but will be taxed as income.

Higham and Blackwell join forces

Higham acquires Dunnett Shaw in bid to boost admin services

Higham Group, specialist services provider to life and pensions companies, has acquired Dunnett Shaw in a bid to boost its administration consulting capability.

A-day and the stages of the pensions act

It is difficult to remember a time when more change has been looming for pension schemes and those who run them.

Cobley: the manager’s role where it should be, at the centre of pension plan governance

PMI launches standard for pension managers

The Pensions Management Institute (PMI) has launched a continous development standard, the Pension Plan Executive Certificate (PPEC), to enable pensions managers to show that they have the expertise to run a pension scheme.

The SPC explains the lifetime allowance

The Society of Pension Consultants (SPC) has designed a simplified document to help pension schemes with the lifetime allowance (LTA) to be introduced under the new pensions tax regime from April 2006.

The countdown to A-day is well underway

This time last year I sat down to look at the pensions agenda – pensions simplification and A-day seemed a long way away. I attended meetings to discuss the issues with independent financial advisers (IFAs) and the response in many quarters was lukewarm to say the least.

Holt: Confident of a quick sale

Aqera looks for a bigger home after failure to attract tenders

Aqera, the financial services software developer, has been put up for sale after a series of recent failures to attract tenders from providers.

Tech briefs
Protect and survive

When it comes to patent protection for financial products, UK companies lag behind their US rivals. But this is about to change, giving companies a critical choice, argues Robin Fry

Saving annuities from extinction

There is a danger that life annuities might disappear from the financial scene, but longevity-linked products, bonds and derivatives whose returns are linked to one or more mortality indices could save the day, says David Blake

Long-term planning is the key

Life companies have realised that short-term gains from outsourcing and re-organisation are easy to achieve and so they are becoming more unwilling to pass the benefit on to a third party. But Liberata Financial Services is getting ahead by doing just the opposite, says Chris Jackson

Brendan Barber, general secretary of the Trades Union Congress

Compulsion is part of the answer

The TUC’s Brendan Barber talks to Pádraig Floyd about the state of pensions and how the unions can help

Staying the course with bonds

Try to imagine lining up for a race without knowing what you are there to achieve. Should you just run as fast as you can out of the block? Or should you pace yourself, conserving energy, running efficiently, so you can perform well over the entire distance? In a sprint the former tactic is suitable, but if you are going to stand any chance of success in a longer race – and here you can insert ‘pension investing’ – you need to follow the latter discipline.

The risky business of protection

The PPF will be financed through a pension protection levy charged to all private sector DB schemes. However, DB schemes are already in decline and what looks like an extra tax could be the terminal blow, says Frank Chacko

Steady growth for property funds

It is something of a mystery that at a time when the population at large is pinning its collective investment hopes to the residential property market as their main, in some cases only, investment for retirement, institutional pension investors in the UK remain at best lukewarm to the idea of property.

The benefits of cost control

Are the developments in pensions having a knock on effect on corporate healthcare benefits and what trends are emerging? Laverne Hadaway finds out

The future is corporate wrap

Many of the technology-based providers who have felt the UK market should be their next hunting ground have yet to develop wrap products that fully meet the requirements of the UK market. However, with a few adjustments from the Australian model, the corporate wrap is the way of the future, says Nick Groom

Decisions on ill-health benefits

Three determinations highlight the important role medical advice plays in deciding whether or not an ill-health pension will be granted. Jason Shaw reports

Roundtable panellists sit down to lunch as the discussion begins. From left: Bob Salt, head of pensions department, Rathbones; Brian Dennehy, director, Dennehy Weller; Lawrence Hawthorn, director of UK partners, Insight Investment; Matthew Craig, editor-in-chief, Pensions Management; Ian Stewart, pensions manager, Collins Stewart; John Moret, head of sales and marketing, Suffolk Life; David Lough, chief executive, Cripps Portfolio

Sipps – what does the future hold?

With the arrival of pensions simplification, growth in Sipps next year is inevitable. A panel of industry experts discuss the most important factors affecting the individual pensions market at present

Examine all the options carefully

David Trenner, technical manager at Intelligent Pensions, answers this month’s G60 question on the maximum contributions a person could make to his current pension arrangements in the 2004/05 tax year

The changing face of custody

The role of the custodian continues to evolve as it is ultimately shaped by investor trends and the needs of its clients, says Jemma Broadgate

An annuity for the long haul

One of the key influencers affecting annuity rate pricing is longevity assumptions, and probably the biggest factors influencing longevity assumptions, other than health, are age, followed by gender and then lifestyle, says Peter Quinton

Annuities statistics
The move to mainstream

As Robert Barrington explains, socially responsible investment has expanded to continental Europe while the trend towards shareholder activism and engagement in the UK looks set to grow even stronger

Mouen-Makoua: Axa UK COO

Mouen-Makoua moves up at Axa

Daniel Mouen-Makoua has been appointed as UK chief operating officer (UK COO) by Axa Investment Managers.

Pickering (left) and Edmans named directors of the Pensions Regulator

Pensions Regulator names non-exec board

The first non-executive directors for the Pensions Regulator have been unveiled.

Alan Pickering, Laurie Edmans, Chris Swinson, Caroline Thomson and Roger Walsom have all been approved to join the board and take up their positions with immediate effect.

People news in brief
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