February 2021
05Feb

UK. FCA Launches Defined Benefit Advice Assessment Tool

Last month, the FCA launched its Defined Benefit Advice Assessment Tool (“DBAAT“) as part of its strategy to reduce harm to consumers and improve the suitability of defined benefit (“DB“) transfer advice. The tool will help firms to understand precisely how the FCA assesses the suitability of DB transfer advice. Background The launch of DBAAT comes in light of the FCA’s concerns that consumers are being advised to move their pensions out of DB schemes, despite the fact that...

February 5, 2021
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02Feb

U.K. firms sponsoring DB plans comprise big chunk of profit warnings

Almost two-thirds of listed companies sponsoring defined benefit funds issued a total 249 profit warnings last year, accounting for 43% of all U.K. profit warnings made in 2020. The latest EY quarterly analysis of profit warnings found that 10% of those firms with a DB fund issued their third consecutive profit warning in 2020 — often a precursor to insolvency. EY analysis shows that, typically, 1 in 5 firms issuing three warnings within 12 months will become insolvent within...

February 2, 2021
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May 2019

04May

Towards a New Pensions Settlement: The International Experience: Volume 3

By Gregg McClymont, Andy Tarrant. In a world of ageing populations, and in the midst of a global shift from defined benefit (DB) to defined contribution (DC) pensions, the onus is increasingly on individuals rather than employers to bear the risks of retirement provision. This book weighs the experiences of eight nations across the Americas, Asia and Europe, who have in common early adoption of DC pensions, but very different experiences of mitigation of that risk by the state, either...

May 4, 2019
Aging, Books, Pension design, ,
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May 2018

21May

Golden Handcuffs and Corporate Innovation: Evidence from Defined Benefit Pension Plans

By Huu Nhan Duong (Monash University - Department of Banking and Finance; Financial Research Network (FIRN)), Bin Qiu (Missouri Western State University, Craig School of Business) & S. Ghon Rhee (University of Hawaii - Shidler College of Business; University of Hawaii - Department of Financial Economics and Institutions) This study takes advantage of sharply nonlinear funding rules for tax-qualified defined benefit (DB) plans to identify the effects of employees’ deferred compensation on corporate innovation. We find that firms with higher...

May 21, 2018
Articles, Pension design, ,
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