DB Pensions – End-April 2013 PPF 7800 deficit

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. April saw another dip in universe funding levels, despite a small positive return for assets; a decline in gilt yields over the month more than made up for this. There was an increase in total scheme deficit from £236.6bn in March to £256.6bn in April with a corresponding small reduction in s179 funding ratio to 81.5% from 82.6%.…

Continue reading

Babies & Bathwater – Preliminary QIS results for IORP 2

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 – IORP 2. 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…

Continue reading

DB Pensions – End-March 2013 PPF 7800 deficit

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. The steady improvement in universe funding through the early part of 2013 came to an end in March, with an increase in total scheme deficit from £201.5bn in February to £236.6bn with a corresponding small reduction in s179 funding ratio to 82.6% from 84.6%. This deterioration was driven by reductions in gilt yields over the month, largely due…

Continue reading

The Pensions Governance Index: a joint initiative

28 March 2013 Three influential pension schemes (Royal Mail, Telent and SAUL) have combined to develop a project aimed at a survey of pensions 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.

Continue reading

Pensions Liberation Schemes – a significant new threat

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.

Continue reading

DB Pensions – End-February 2013 PPF 7800 deficit

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. Estimated total scheme deficits continued the trend of consistent improvement through the early part of 2013, from £211.2bn as at end January to £201.5bn with a corresponding small improvement in s179 funding ratio to 84.6% from 83.7%. February’s improvement was driven by significantly positive asset returns, though a small increase in gilt yields had the effect of partially…

Continue reading

  • Author: Martin Veasey
    © www.veaseyassociates.co.uk 2011 – 2024


    Please call or email me for further information on this page or my services.