12 June 2013
In September 2012, the Pensions Regulator held a three month consultation on revising their codes of practice on reporting late payments of contributions to defined contribution schemes.
The consultation results have been analysed and amended draft codes of practice have now been laid before Parliament – with an expectation that these codes will go live in the Autumn.
12 June 2013
The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-May 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund.
16 May 2013
The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-April 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund.
11 April 2013
The European Insurance and Occupational Pensions Authority (EIOPA) has been tasked by the European Commission with establishing a new framework for the Europe-wide regulation of pension schemes.
The most controversial aspect of their consultation work to date is the calculation of scheme solvency and how best to include a quantitative estimation of the value of sponsor support. Much media coverage has already focused on the additional costs that might need to be incurred by sponsors and speculation about how this project, if implemented badly, could serve as the final nail in the coffin of defined benefit provision as a living and vital part of the employee package.
EIOPA has just released preliminary results of its Quantitative Impact Study (QIS) – an attempt to quantify the impact of the currently proposed framework – which provides plenty of information to get our teeth into in assessing possible outcomes.
Update available as PDF download (click the icon or go to our Library).
10 April 2013
The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-March 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund.
28 March 2013
Three influential pension schemes (Royal Mail, Telent and SAUL) have combined to develop a project aimed at a survey of scheme governance arrangements and the consequent internal and advisory costs incurred in performing this function. The exercise is sponsored by Russell Investments.
To this end, they have published a questionnaire on a joint website: www.pensionsgovernanceindex.com and are inviting other schemes to download, complete and return this to extend the reach of the research universe.
In return for participation, other schemes are offered a report benchmarking their practice against comparably-sized schemes. The website gives a comprehensive undertaking of confidentiality – the work is carried out by a third-party data analyst who is willing to enter into appropriate non-disclosure agreements.
13 March 2013
Pensions liberation schemes (whether advertised by cold call, email or text message) seem to be on the increase and are causing alarm bells. Pensions tax regulation is clear here: a member is able to receive 25% of accumulated capital back tax-free at the point of retirement but there are extremely restricted circumstances where an earlier return of capital is anything other than an unauthorised payment. There is also the risk of outright fraud with these schemes and a potential for full loss of the pension pot.
Update available as PDF download (click the icon or go to our Library).
12 March 2013
The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-February 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund.
12 March 2013
The NAPF has added to their list of ‘made simple’ educational guides available on their website with a new title on Fiduciary Management, written and sponsored by Russell Investments.
If you have read the guide or have views on the pros and cons of fiduciary management / delegated consulting, please do leave comments below.
25 February 2013
Over the weekend, I found myself musing on the consequences of the Moody’s downgrading of UK government debt for UK pension schemes. Does it really matter: are gilts really safe, what does it mean for the cost of financing the public debt and for pension deficits.
In reality, I believe that the change of credit rating by one of the three big agencies tells us next to nothing new about the safety of gilts and that the Moody’s action is likely to have an extremely limited impact on gilt yields. It will likely continue the recent weakness in sterling as I tweeted on Saturday:
UK downgrade by Moody’s. Result less important than policy around public finances of course!
— Veasey Associates (@veaseyassociate) February 23, 2013
Downgrade effect more likely to be felt in continued sterling weakness …
— Veasey Associates (@veaseyassociate) February 23, 2013
The UK is not in an unusual situation : we all recall the action on the US (2011) and France (2012) : and, of the major bond issuing nations, only Germany and Canada remain in unsullied AAA territory.
I also reviewed my 2011 paper on the impact of the downgrade of US by S&P : virtually all of the lessons are still very pertinent today:
Update available as PDF download (click the icon or go to our Library).
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