Pensions Management - the magazine for pension & investment industry professionals
News & Analysis » Scheme » Other scheme issues
Risk model to shed new light on longevity

The first longevity risk model to look at future medical advances to predict mortality rates has been launched by Risk Management Solutions (RMS).

Cost of public sector schemes expected to double by 2015

Deputy prime minister Nick Clegg has called for a major overhaul of public sector pensions as the cost of their provision is expected to double over the next four years.
Figures from the Office for Budget Responsibility indicate annual costs will rise from £4bn in 2010/2011 to £9bn in 2014/2015, or £143 for every one of the 62.7 million inhabitants of the UK.

Schemes’ returns at risk from climate change rules

Recent climate change legislation could have a serious impact on the profitability of the UK firms pension schemes invest in, trustees have been warned.

‘The SSAS as we know it is no more’

Small self-administered schemes (SSASs) are legacy products with no relevance to the vast majority of clients, an industry panel has heard.
Speaking at a Pensions Management roundtable, the group of industry spokesmen agreed the only advantage a SSAS had over a self-invested personal pension (Sipp) was the loanback facility.
“Is SSAS not a hangover term?” asked Paul Garwood, director at Smith & Williamson. “The SSAS as we used to know it is no more.

Graves: full Sipps will be unaffected in the short term by changes to tax relief rules, but uncertainty about the future of pensions remains

Sipp providers fear tax changes

PM’s annual Sipp survey reveals industry concerns for the immediate future, but hope remains in the long term as the market regroups

Orton: transition periods are ‘much longer than hoped for’

PPF in £131m liability hit

The Pension Protection Fund (PPF) could be liable for millions of extra pounds in schemes where equalisation has been miscalculated.

SPVs favoured to plug deficits

Continued interest in special purpose vehicles (SPVs) among blue chip employers is expected to follow moves by Marks & Spencer (M&S) and Sainsbury’s.

Tomlinson: credit crunch demonstrated that markets are inefficient

IASB/NAPF standards spat

A review of the way pension assets and liabilities are calculated is to be launched this year by the International Account-ing Standards Board (IASB).

Barber: report is evidence of the sustainability of public schemes

Unfunded schemes see 56% rise in contributions

Public sector pensions have seen payments increase by 38% in the last decade, according to a National Audit Office report (NAO).

Public sector faces possible £60bn deficit

The local government pension scheme may face a deficit of £60bn, if figures from the Liberal Democrats are to be believed.

IBM forced to defend scheme changes

IBM has been accused of forcing through changes to its £6.6bn defined benefit scheme for UK employees, without trustee approval.

Katharine Photiou

Vantage point for wrap provider

Hargreaves Lansdown announces the launch of an integrated corporate wrap in April 2010, incorporating workplace savings, ISAs and group Sipps

ITV deal a ‘win-win’ for firm and scheme

Further details of ITV pension scheme’s groundbreaking contingent assets deal have been revealed by the chair of trustees, Graham Parrott.

Fund in longevity hedge first

A local authority pension scheme is poised to become the first of its type to hedge itself against the risk that its pensioners will live longer than expected.

FTSE firms turn to ETVs to stem liabilities

At least two FTSE 100 employers are currently tendering for enhanced transfer value (ETV) exercises after a shift in corporate bond values made pricing more effective.

McGlone: a variety of methods is being used by firms to cut costs

Funds against the ropes fight back to stay afloat

Cost pressures on defined benefit schemes are forcing through innovative changes such as contribution holidays and pensionable salary caps.

BA scheme gave up a £230m cash injection despite its £2.6bn deficit

Raft of schemes unveil final salary shake-up

Some of the country’s biggest final salary pension schemes have chosen the summer months to publicly announce plans for drastic changes to plug growing deficits.

Branagh: trustees are facing price pressures

Trustees pay for good admin

Scheme trustees are still prepared to pay for quality administration services despite the recession, according to PM research.

Oval milks the Unigate scheme for admin plans

The Oval Group has revealed it is to develop a third-party administration function from the former Unigate pension scheme.

Oval squares up to join the circle of scheme advisers

The market for consulting services servicing pension schemes has seen much consolidation in recent years, but one company bucking the trend is the Oval Group.

DB scheme closures

"We have long warned the government that it must radically reform regulation and create a flexible regime that allows employers to meet the needs of a modern workforce. While the government has made some changes, ministers have not taken this issue seriously enough.”

Critical time for DB

The closure of several large defined benefit (DB) schemes in the past few weeks could have a ‘snowball effect’ on the rest of the DB sector, according to industry commentators.

Tax relief for high earners...

Workers with an income of between £100,000 and £113,000 could be better off by increasing their pension contributions in the next tax year.

...but low earners overlook work schemes

Low-wage earners are far less likely to belong to a company pension scheme than higher-paid employees, according to the Office for National Statistics.

Khalaf: good time to cut

BT slashes dividend

BT has cut its dividend share price in an effort to plug a £4bn funding gap in its pension scheme.

Gubler: disruption in the markets may skew the survey data

Admin costs see 20% hike

Administration costs increased by around 20% during 2008, according to Watson Wyatt’s annual Pension Scheme Cost Survey.

Pinsent Masons: DB is not dead yet

A survey of 200 businesses found that no open final salary schemes are planning to close.

Goodyear to roll out DC scheme

Goodyear Dunlop, the UK branch of the tyres and car supplies manufacturer, is looking to introduce a new defined contribution (DC) scheme for its members.

Rules rewritten for DB fund

A defined benefit pension scheme’s rules have been rewritten to reflect the intention of its sponsor and trustees after a High Court decision.

Kellogg's employees wake up to the chance of a brighter future

Despite a number of recent studies indicating that UK workers are disenchanted with occupational pension arrangements, Kellogg’s, the household name cereal manufacturer, can demonstrate it has successfully bucked that trend.

Aon refutes merger link to benefits cut

Insurance broker and pensions consultant Aon has denied its recent merger with Benfield directly influenced the decision to cut its pension benefits.

Sants: schemes and regulators are obliged to intervene in companies as part of their role and could on aggregate be doing more

Action on firms is schemes’ duty
UK funds apply to join RBS lawsuit

Two local authority pension schemes are looking to sue Royal Bank of Scotland (RBS), claiming that it falsely reassured investors of its financial security.

Three steps to improve DC

Defined contribution (DC) needs to be better targeted if it is to deliver what both the employer wants and the member requires, said Gary Smith, a senior member of Watson Wyatt’s DC team.

New breed of DB ‘virtually inevitable’

A new type of defined benefit (DB) scheme could be a long-term solution for many employers struggling to meet current DB guarantees, according to a leading pensions expert.

Schofield: more appropriate capital structure for the future

Premier Foods uses its loaf to save on pension dough

Premier Foods, the maker of Hovis bread, has established new arrangements with trustees of its four pension schemes to reduce their burden.

Lawson: the move is necessary

Lawson: the move is necessary

Business and pensions groups are calling for action to abolish the indexation of defined benefit (DB) pensions, to help companies avoid insolvency during the recession.

BT announces new corporate Sipp

Standard Life is to develop a corporate self-invested personal pension (Sipp) plan for BT staff.

Shaw: members could be better served outside the PPF

Schemes better off out of PPF, says OPT

OPT advises pension funds in danger of entering the PPF: keep running and generating returns so members can receive full benefits

Barton: findings are dismal news

Small schemes struggle to survive

More than 90% of small firms’ defined benefit (DB) schemes are closed to new members, and half of those are closed to new accruals, according the Association of Consulting Actuaries (ACA).

Research pinpoints possible snowball effect of DB scheme closures in 2009

The acceleration in UK defined benefit (DB) scheme closure will continue in 2009, Watson Wyatt has predicted.

DB schemes must become cost-savvy

Companies operating defined benefit (DB) schemes need to be more aware of the costs involved in these schemes if they are to successfully overcome the economic downturn, according to research by Pension Capital Strategies (PCS).

Standard Life pledges to remediate Sterling fund sufferers

Standard Life is to remediate certain customers of its Sterling Pension Fund following its announcement that the value of the fund had dropped by 5%.

User Login
You are not logged in.
Username:

Password:

remember me
E-mail Updates

Poll

HAVE YOUR SAY... Auto-enrolment will deliver higher levels of retirement income despite the government maintaining means-testing.

  • STRONGLY AGREE
  • AGREE
  • NEITHER AGREE NOR DISAGREE
  • DISAGREE
  • STRONGLY DISAGREE
Subscription Contacts Privacy policy Terms and Conditions Webmaster

Mailing address: Financial Times Ltd, Number One Southwark Bridge, London, SE1 9HL, United Kingdom

© The Financial Times Limited 2010