DB to DC transfers – Pensions Regulator consultation

2 March 2015 The Pensions Regulator has produced a useful consultation document on DB to DC transfers and conversions and invited comments by 17 March 2015. The consultation document is pretty clear, concise and accessible and is likely to form the basis of new guidance for DB pension scheme trustees faced with the tricky question of how to handle DB members wishing to transfer to a DC scheme.     For me, there are five key areas: There should be relatively few cases where such a transfer is actually in the best interests of the member – giving up guaranteed…

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Something Different: March 2015 Solar Eclipse

20 March 2015 Well the solar eclipse came and went under the glare of incredible media and popular attention. Hopefully it will have ignited some sustained interest and excitement amongst the next generation! I wanted to thank you for some really kind feedback on the previous posting (below) and some general interest in my hobby of astronomy. I’ve therefore set up an informal personal blog on the subject: www.orionwatching.org – please pay a visit if you have a spare moment! 27 February 2015 On this Friday afternoon, perhaps a little whimsically, I’ve chosen to write on a subject that has…

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Auto Enrolment – 2015 review of thresholds

1 February 2015 I last wrote about the auto enrolment thresholds at the end of 2012.1 Since then, the auto enrolment staging process has progressively unfolded and, as at the time of writing, smaller employers with just 50-60 workers are in the process of implementation. Whilst staging will continue for some considerable time, it is fair to say that auto enrolment should now be just as embedded in the thinking of smaller and mid-size as well as larger companies. One aspect that seems to be getting little coverage – though some of the trades unions and other commentators have highlighted…

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Where did the deficit come from? – a study in scarlet (ink)

20 January 2015 According to Pension Protection Fund (PPF) data1, the s.179 funding level for the aggregate universe of DB schemes potentially eligible for entry into the PPF fell sharply during 2014. According to their database, the aggregate funding position moved from a small surplus (0.8% at Dec 13) to a significant deficit (-17.7% at Dec 14). So where did all this red ink2 come from? Well … conventional growth assets may not have helped much. Trustees will be familiar with the roll-forward phenomenon on actuarial valuations; that the selected discount rate becomes a sort of ‘hurdle rate’ going forward…

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