February 2018

09Feb

Protected rights: urgent action required by UK pension scheme trustees

Between 6 April 1988 and 5 April 2012, it was possible for schemes to contract out of the earnings-related element of the state pension by providing “protected rights” which were a form of DC benefit. Certain contributions had to be paid into a member’s DC “protected rights” account, and the pot of money that resulted had to be used in particular ways laid down in legislation on the member’s retirement or death. This form of contracting-out was designed for DC...

February 9, 2018
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January 2018

29Jan

UK. Carillion ‘fell short on pensions for a decade’

Bosses at Carillion are set for a heated showdown with MPs after the Commons work and pensions committee accused the failed outsourcer of attempting to “wriggle out” of its pension obligations for the past decade. The committee released details of the way the company’s pension deficit and its cash problems were handled over several years. This week MPs will be questioning former Carillion executives and regulators as part of a joint inquiry into the company’s collapse with the business, energy...

January 29, 2018
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22Jan

British PM May says will stop companies abusing pension schemes

British Prime Minister Theresa May said she would clamp down on bosses who try to “line their own pockets” while not protecting workers’ pensions, after the collapse of outsourcer Carillion with a 900-million-pound hole in its pension scheme. Writing in Sunday’s Observer newspaper, the Prime Minister said private companies could help deliver better public services, but the system needed to be rebalanced in favor of ordinary working people. “In the spring, we will set out tough new rules for executives who...

January 22, 2018
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22Jan

UK. Universities face disruption as union calls strike over pensions row

Universities across the UK are to face major disruption after workers voted to go on strike in a row over pensions. Of the 58% of University and College Union members who voted, 88% were in favour of strike action, with 93% approving of some other form of industrial action as talks with Universities UK over changes to the existing pensions scheme failed to deliver a solution. Universities UK (UUK) - the representative organisation for the country's universities - wants to change...

January 22, 2018
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10Jan

UK. Millions of workers face £120 hike in National Insurance bills to help fund the state pension

Millions of workers face higher National Insurance bills to fund state pensions, the government's own analysts have warned. The Government Actuary Department (GAD) said NI rates may have to go up by as much as 5 per cent to maintain the stability of the pension fund. This would mean an annual increase of £120 on the average worker's tax bill – and a £138 increase for their employer. Last night experts said the shocking projections underlined the depth of Britain's pensions...

January 10, 2018
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09Jan

UK. 140,000 carers miss out on £240-a-year boost to state pension

More than 140,000 carers could be missing out on hundreds of pounds a year in retirement as they have failed to take advantage of a government scheme to protect their state pension. Those who spend more than 35 hours a week caring for someone, even a relative, are automatically given National Insurance credits that preserve their right to a full state pension. Those who spend fewer hours as a carer must apply for credits, and it appears many are missing out. When the...

January 9, 2018
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December 2017

30Dec

Welfare State Reforms Seen from Below: Comparing Public Attitudes and Organized Interests in Britain and Germany

By Bernhard Ebbinghaus,‎ Elias Naumann Studying the political economy of welfare state reform, this edited collection focuses on the role of public opinion and organized interests in respect to policy change. It highlights that welfare states are hard pressed to reform in order to cope with ongoing socio-economic and demographic challenges. While public opinion is commonly seen to oppose welfare cuts and organized interests such as trade unions have tended to defend acquired social rights, this book shows that there...

December 30, 2017
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29Dec

UK to sink to the bottom of OECD wage growth index in 2018

Britain is set to have the worst wage growth of any wealthy nation next year, ranking behind Italy, Greece and Hungary, according to analysis by the TUC. The UK is forecast to come bottom from 32 Organisation for Economic Co-operation and Development wealthy nations for wage performance in 2018, according to the study of OECD figures by the unions’ umbrella group. British workers are expected to see their earnings decrease by 0.7% in 2018 when taking account of inflation, which has...

December 29, 2017
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22Dec

New laws proposed by UK government on bulk transfers of pension rights

The Department for Work and Pensions (DWP) opened a consultation on the proposed new Contracting-out (Transfer and Transfer Payment) (Amendment) Regulations 2018 (16-page / 263KB PDF) on Thursday. It is the DWP's intention that the new rules would take effect from 6 April 2018. "These amendments will enable any salary-related occupational pensions right (active, deferred and pensioner) to be transferred to newly established schemes (that have never been contracted out) without member consent under specified conditions," the DWP said. "These conditions will be that...

December 22, 2017
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22Dec

Thousands of UK Toys R Us jobs saved after deal with pensions body

Thousands of jobs at Toys R Us have been saved after the ailing toy retailer agreed to pump more than £9m into its pension plan over the next two years in a last-minute deal with the state-backed pensions lifeboat. The Pension Protection Fund joined landlords and other creditors in backing Toys R Us’s company voluntary arrangement (CVA) plan, which involves the closure of at least 26 loss-making stores from next spring as well as reducing the size of others. Consultations...

December 22, 2017
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