August 2020

27Aug

UK ‘lifeboat’ scheme for company pensions at risk

A former minister has warned that the government’s “lifeboat” scheme for company pensions is at risk from a huge wave of corporate defaults which in extreme circumstances could result in a 10% cut to pensioner incomes. Read also UK. Why we’re largely a nation of ‘no clues’ on pensions The Pension Protection Fund is the “insurance policy” for millions of people in final salary-style company pension schemes, promising to pay out if the employer becomes insolvent. It is funded by...

August 27, 2020
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27Aug

UK. Taking action on climate risk: improving governance and reporting by occupational pension schemes

This consultation seeks views on policy proposals to require trustees of larger occupational pension schemes and authorised schemes to have effective governance, strategy, risk management and accompanying metrics and targets for the assessment and management of climate risks and opportunities. It also invites responses on proposals to disclose these in line with the recommendations of the international industry-led Task Force on Climate-related Financial Disclosures (TCFD). It is proposed that among the activities required would be calculating the ‘carbon footprint’...

August 27, 2020
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26Aug

UK pensioners lose £30m to scammers

Pension savers claim over £30m ($39.4m) has been lost to scams over the past three years, according to the Financial Conduct Authority (FCA) and The Pensions Regulator. Pension pots of all sizes have been victims of scams, with reported losses ranging from under £1,000 to as much as £500,000. A total of £30,857,329 has been reportedly lost to pension scammers since 2017, according to complaints filed with Action Fraud. However, the true number of scams is likely to be...

August 26, 2020
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21Aug

UK. How COVID-19 will affect women’s pensions in the long term

It is clear that the pandemic is more than just a health crisis, but an economic one too. Since the lockdown was introduced in March, millions of people have been furloughed or made redundant. And not only is the financial fallout of coronavirus affecting women more severely than men, it will continue to impact their savings for years to come. Prior to the virus, women only saved a third of the amount that men do by the time they...

August 21, 2020
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14Aug

UK. TPR responds to questions on their effectiveness on a pension scam case to WPC

The Pensions Regulator (TPR) chief executive, Charles Counsell, has written to Work and Pensions Committee (WPC) chair, Stephen Timms, in response to questions posed by Timms concerning TPR’s handling of the Norton Motorcycles case. Following The Pensions Ombudsman’s (TPO) decision to uphold the complaints relating to the Norton Motorcycles pension schemes, Timms wrote to Counsell asking about TPR’s plan of action. At the time, Timms described the case as “shocking” and said it raises “serious questions” about the “effectiveness...

August 14, 2020
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12Aug

UK. Will the FCA defined benefit pension transfer plan work?

The defined benefit (DB) pension transfer market has caused a lot of problems for the advice industry, with rising professional indemnity insurance premiums and pension scheme scandals. The Financial Conduct Authority (FCA) set out a range of measures in June 2020 designed to address weaknesses, in a bid to transform the space. This included steps to reduce conflicts of interest by banning contingent charging, as well as help for advisers “who want to do the right thing and provide...

August 12, 2020
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10Aug

UK. Pension leaders file complaint over FCA ‘advice trap’

Pensions industry representatives have written a joint complaint to government ministers over new guidance from the Financial Conduct Authority, which they warn could see trustees deemed to be giving regulated financial advice. Read also UK. TPR responds to questions on their effectiveness on a pension scam case to WPC The Association of Consulting Actuaries, the Pensions Administration Standards Association, the Pensions Management Institute and the Society of Pension Professionals wrote to Guy Opperman, minister for pensions and financial inclusion, and...

August 10, 2020
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07Aug

Defined Benefit Pension Schemes in the UK: Asset and Liability Management

By Philippe-N. Marcaillou The goal of Asset-Liability Management (ALM) of a Defined Benefit Pension Scheme (DB) is to properly manage the risks related to variation in its building blocks on both sides of the balance sheet whilst maintaining the same expected return. This book provides a step-by-step methodology to maximize the complete restructuring and monitoring of the ALM of DB schemes. It is a product of the author's 25 years of experience and technical knowledge in ALM of...

August 7, 2020
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04Aug

UK. FTSE 350 pension deficit rises as COVID19 lockdown eases

Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed companies increased from £90bn at the end of June 2020 to £103bn on 31 July. Liability values rose by £13bn to £970bn at the end of July compared with £957bn at the end of June. Asset values were £867bn (unchanged since the end of June). Charles Cowling, Chief Actuary, Mercer, said: “Pension scheme deficits worsened again...

August 4, 2020
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July 2020

29Jul

UK pension scheme NEST tightens climate change policy

The move by the scheme, which invests the retirement savings of 9 million workers, is one of the most ambitious to date and comes as regulatory pressure builds for the industry to better manage climate-related risk. As well as the effects of climate change such as rising sea levels and more extreme weather, companies are at risk of costs associated with regulatory change and litigation linked to the transition to a low-carbon economy. "Just like coronavirus, climate change poses...

July 29, 2020
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