Pensions Management - the magazine for pension & investment industry professionals
Back issues » 2009 » July
Heading down the well-trodden path to failure

They say it’s lonely at the top. No one knows that better than Gordon Brown at the moment. Not that he’s all that bothered I would imagine. After all, he’s someone who has never knowlingly demonstrated a propensity for camaraderie or bonhomie. Asceticism is not so much an ideal, as a way of life, for him; he probably gave himself a lift by putting Gloria Gaynor on repeat on his karaoke machine.

From left to right: the twice-former pensions minister Stephen Timms, Yvette Cooper, chancellor Alistair Darling and Angela Eagle

Pensions merry-go-round continues…

Angela Eagle and Yvette Cooper are the 15th pair to take the top pensions roles since 1997, raising questions about the effects of so many changes

IFAs positive about OMO, but many doubt its practicability

An overwhelming majority of IFAs believe it is important to achieve 100% open market option (OMO) coverage, though only 46% think it is attainable, according to Pensions Management research.

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.

Draper: S615(6) offers a lot of flexibility in investment terms

S615(6) to benefit overseas staff

A product that aids employees of UK companies working abroad to save in a tax-efficient pension scheme has been made available to advisers.

RDR receives tepid reception from industry

The Financial Services Autho-rity’s retail distribution review (RDR) has attracted tentatively positive feedback from respondents to PM’s annual lifetime annuities survey.

Small firms turn to SSASs

The credit crunch has led to a boom in the set-up of small self-administered schemes (SSASs) among small to medium-sized employers.

Sipp providers defend ‘skimming’

Self-invested personal pension (Sipp) providers have responded to criticism of their practice of earning commission on their clients’ cash holdings.

Holding the Tories to their promises

It needed something big to knock the expenses debacle off the political debating stage, and we got it. David Cameron’s Conservatives actually began to come out with some vaguely concrete economic policies.

BT tops responsible poll

The BT Pension Scheme’s responsible investment policies have won top spot in a ranking of funds with sponsors that are strong in corporate responsibility.

BlackRock deal will boost ETFs at BGI

BlackRock’s $13.5bn (£8.2bn) merger with Barclay’s Global Investors (BGI) could significantly enhance the latter’s exc-hange traded funds (ETFs) business, experts have predicted.

Employers must release more info on scheme liabilities

The regulator must compel employers and pension sche-mes to provide greater disclosure on scheme liabilities, according to Peter Elwin, head of accounting and valuation research at Cazenove Equities.

UK equities – where do we go from here?

UK equities have had a strong run since their trough on March 9, thanks to improved investor confidence. The rally was initially led by bombed-out stocks, especially by banks that suffered heavily in the financial crisis and could require further capital injections down the road.

Hedge fund body deflects blame

The Hedge Fund Standards Board (HFSB) has hit out at recent negative press coverage of the industry following the financial crisis.

MPs’ scheme under review

A consultation on the future of the Parliamentary Contributory Pension Fund has been launched by the Senior Salaries Review Body (SSRB).

Equalisation cases expected to rise

Lawyers have predicted a wave of equalisation litigation, following the news that Eversheds and Mercer are facing a claim from a UK scheme.

Ethical investments banish prejudices

This month marks the 25th anniversary of the launch of the UK’s first ethical investment fund. Over the years, companies have increasingly discovered that this approach to investing can not only yield concrete economic rewards in terms of increased profits and reduced costs; but that factors such as public opinion and the threat – and costs – of possible legal action also play a not insignificant part.

BlackRock delivers a global fiduciary first

BlackRock has completed the implementation of the first multinational, multi-scheme fiduciary mandate.

Abbey’s scheme deficit had been estimated to be around £600m

Abbey overhaul nets £1bn for scheme

Abbey, the financial services company owned by the Santander group, is making significant changes to its company pensions as part of a strategy to improve risk controls in its defined benefit (DB) schemes.

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.

Finch: the birth of the longevity protection market is well-timed

Competitive longevity swaps lure larger firms

Competition among longevity swap providers is forcing down prices and has attracted six FTSE 100 companies to obtain quotations.

Tomlinson: will take over from Chris Hitchen later this year

Tomlinson announced as next NAPF chairman

Lindsay Tomlinson has been elected chairman of the National Association of Pension Funds (NAPF).

Policy Exchange calls for scheme funding body

A centre-right think-tank has proposed that a new body be set up to pay the pensions of employees in unfunded public sector schemes.

Sipps being inaccessibly expensive is simply myth

I read with interest Owen Walker’s comment “I do not have enough to put in a self-invested personal pension (Sipp)” in the most recent edition of Pensions Management.

Buyout and Derisking Conference a success

The inaugural Buyout and Derisking Conference brought together trustees, scheme managers, finance directors, consultants and politicians to explore solutions that help defined benefit (DB) schemes make their members’ pensions more secure and reduce their impact on company balance sheets.

Capitalism undermined

If you are of the opinion that the world’s bankers, regulators and politicians were predominantly to blame for the credit crunch and the onset of global recession, and if you believe strategies such as quantitative easing and the scapegoating of Fred Goodwin et al means there has been insufficient punishment and humiliation of those responsible, then we may have found the book for you.

A dam big problem

Pension funds will struggle to honour defined benefit liabilities as a result of the financial crisis, but the issuance of more long-dated gilts would alleviate the problem for all

Keep up with the pensions carousel

Let me tell you a story. Once upon a time, in May 1997 to be precise, a lady called Harriet Harman was the secretary of state for social security. That meant she was in charge of our pension system. A man called Frank Field was the minister of state for welfare reform at the same time. That meant he was in charge of pensions too (we always have two people in charge of our pensions).

Showing a united front

The relationship between sponsors and trustees is being tested, as each grapples to reconcile its own objectives with issues surrounding their co-dependency

Scheme profile: Creating cereal savers

As many firms struggle to persuade their employees to join the company pension scheme, Pádraig Floyd finds Corn Flakes manufacturer Kellogg’s has achieved a 97% take-up rate

Revolving doors at DWP

The long-suffering pensions industry and the UK population would benefit most from a little stability at the DWP, rather than the frustration of continuous reshuffles

Nickols: policymakers must be careful not to choke off a recovery

Small cap fund with big ideas

Old Mutual Asset Managers’ Dan Nickols tells Nick Reeve about bypassing the lows of the recession, the possible dawn of a new bull market and opportunities in emerging markets

It’s not all Greek to me...

Alexandre Col tells Pádraig Floyd the difficulties faced by many hedge fund-of-funds managers are largely of their own making, and that better governance will lead to better control

Playing for big money

Despite prominent campaigns, retirees still seem reluctant to take up the OMO, which could reveal better rates for many over the long term

The annuity market is a complex beast that would benefit from greater consumer knowledge

Education for the nation

New technology and streamlined processes are all very well, but consumers must be educated to understand the annuity options open to them in order to make the most of their savings at retirement

Can Sipps survive the tidal wave of progress?

Are self-invested personal pensions (Sipps) still attractive as a vehicle for pension saving in the current climate?

Employers will have to get everything in order to start auto-enrolling employees in 2012

Lining up for 2012

Employers will need to consider how to deal with the myriad requirements that 2012 and the onset of auto-enrolment will necessitate

Cash in on the continent

Investors are advised how to get the best from European markets in such spurious times in value terms

Hudson: strategic role

Non-executive decisions

The Pensions Regulator has appointed Isabel Hudson and Bruce Rigby as non-executive directors.

Campbell actuarial move no wind-up

Spence & Partners, a consulting firm covering Scotland and Northern Ireland, has appointed Ian Campbell as director responsible for actuarial services.

Psolve makes risk manager hat-trick

Psolve Asset Solutions has brought in three members to its risk management team, responding to growing demand for risk products.

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