Longevity is creating added risk for schemes, but the regulator’s plan to provide security through long cohort has received a tepid industry reception

Pensions consultant Mattioli Woods has acquired John Bradley Financial Services and North Star Sipp – together the JB Group – for a disclosed sum of £2.59m.

The ban on conditional indexation in the latest pensions bill has been rounded on by the industry’s largest bodies and the Conservatives.

The government’s decision to launch a study looking at means-testing for personal accounts has been largely welcomed by those in the industry who have campaigned for the matter to be addressed.

I welcome the fact the government has, late in the day, woken up to the fact that concerns about means-testing are a genuine problem. The decision to establish a working group, as proposed by Age Concern, to examine the issue, costs and benefits of potential solutions, is a step forward.

The fiercely competitive buyout market – which experienced a spike in Q4 2007 – has caused the Pension Protection Fund (PPF) to consider revaluating its assumptions, which could lead to a drop in its levies.

Shadow chancellor George Osborne is calling for tax changes to be published in advance of the Budget and scrutinised by a parliamentary committee.

Private equity is fuelling investment in innovation, a report by the British Private Equity and Venture Capital Association (BVCA) suggested.

As figures start to come in from hedge fund indices, it is clear that many strategies have suffered in January.

The credit crunch continues unabated this year, with liquidity in secondary cash markets as difficult as the worst periods seen in 2007.

With analysts suggesting many asset classes are currently overpriced and high levels of volatility being experienced, pension funds and institutional investors can be forgiven for wondering where the relative value now lies.

Trustees who receive payment for their services could fall foul of a little-known anti-money laundering regulation due to come into effect in the UK from April.

Network Rail has slashed the costs of pension provision with the launch of a cost-sharing career average plan that will run alongside its existing arrangements.

Life companies are moving away from a sales-driven to a service provision focus, according to the Association of British Insurers’ (ABI) latest customer satisfaction survey.

Falling service standards and inflexibility towards certain investments has forced SG Hambros Bank to launch an in-house self-invested personal pension (Sipp).

The introduction of the Advanced Financial Advice Module (AFAM) qualification in financial advice by Ifs School of Finance has received a mixed response.

Hands up who’d like to spend a lot less time working and more time in pursuit of their personal dreams? Well, if you thought retiring early was for Premiership footballers and multi-millionaire oil tycoons, think again.

BEFORE starting detailed scrutiny of the pensions bill, the Public Accounts Committee took oral evidence from the great and the good in the pensions industry. Without exception, although some had reservations, all expressed their support for the bill.

Over the years, different schools of thought have affected the way trustees invested. As a result, they now drink from a fragmented fount of knowledge and something needs to change

The so-called debate that has accompanied the pensions bill in its passage through its second reading and committee stages has finally moved on from the ‘is, isn’t; IS; ISN’T! – touched you last – you’re IT!’ stage to the ‘all right, so what, but that doesn’t mean we’re sulking’ stage. It’ll probably have to go through the obligatory ‘does, doesn’t; DOES, DOESN’T!!!’ stage too I suppose, but it will eventually calm down by the time playtime is over.

While economic growth in emerging markets such as India and China offers new investment alternatives, the resulting global inflationary increases pose many dangers

Selecting a Sipp that offers flexibility, competitive rates and the best-fit features is no easy task for either clients or IFAs with so many FSA-regulated providers in the marketplace

While being 75 can mean thousands more in allowance, its impact on dependants is less simple

Great shifts in the landscape of the investment markets, coupled with an uncertain future, means it is even more difficult for trustees to know what their next investment move should be

The rulings in pensions cases are seldom clear cut and often become a useful reference point for similar cases thereafter. Solicitor Jason Shaw highlights three such examples

After 20 years in the industry, Dermot Keegan’s move to OMAM was inspired by his belief that the market was changing. And as such, writes Owen Walker, even this expert is still learning

Owen Walker speaks to Gary Squires about the changing industry landscape of defined benefit pension legislation, and the refocusing of Kroll toward the needs of distressed companies

As pension schemes evolve for the 21st century with one eye fixed firmly on the diversification of assets, are trustees prepared for the long road ahead?

With annuity rates at an all-time high, why should investors consider drawdown as a retirement product? Perhaps because of its increased accessibility and flexible offerings

John Richardson, head of technical planning at Towry Law, offers a few words of advice on assessing the suitability of clients for taking income drawdown

The retirement planning market has widened since A-day, and retirees are increasingly looking beyond traditional annuities for more flexible solutions

Neil Marsh, managing director at Hornbuckle Mitchell, tells Pádraig Floyd that despite the firm’s development as a large specialist Sipp provider, it can still offer clients a truly personal service

Hornbuckle Mitchell’s five guiding principles:

LV has restructured its life and pensions management team in the wake of its acquisition of the Tomorrow flexible retirement solutions business from Swiss Re in January.

Roger MacNicol has joined Scottish Pensions Trustees, the Scottish arm of capital Cranfield Trustees, as client director.

Two of the industry’s most influential bodies have ann-ounced senior appointments this month.

The responsibility of the future of a defined benefit (DB) pension scheme must sometimes feel like the task of Sisyphus for many trustees.

The questions

1. What is the current climate for defined benefit (DB) restructure and the attitudes to the various options available to trustees and plan sponsors?
2. What is the potential impact of the current market volatility on the appetite for buyout and the ability to achieve this?
3. To what extent are trustees fully aware of all the issues that need consideration – whether entering buyout or not – and what are the most important things that get forgotten?
4. What do you see as the main areas of interest for continued DB restructure/scheme derisking over the coming year?

Buyouts may have dipped in popularity, but in precarious times schemes still need to manage long-term risk to bridge the funding gap

As more companies choose to close their DB schemes, what options are available to them to deal with the burden of deficits that remain?

WHSmith switches to DC

WHSmith closed its final salary scheme to new joiners in 1995, while keeping it open to existing members. In the same year, the scheme was one of the first to try to limit its fluctuating pension deficit by shifting to a liability-driven investment strategy.

Higher risk, increased longevity and uncertain market conditions have all forced DB schemes to find a more bespoke approach towards funding

2007 witnessed a spike in the buyout business, with the market growing by 60%, but whether BBO is as hot as the headlines suggest remains to be seen

There are potential risks and benefits to consider in any ETV exercise and developing a robust, carefully considered TCF process is vital to its success