April 2017

28Apr

Royal Mail says considering how to replace pension plan after union backlash

Britain's Royal Mail said on Friday it was looking at ways to replace the defined benefit pension scheme it plans to scrap at the end of March 2018, after a backlash from unions over the closure of the older scheme. Royal Mail, the British postal service privatised in 2013, said it was one of only a few major companies that still has employees in a defined benefit scheme, a type of pension that pays out according to employees' final...

April 28, 2017
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27Apr

UK. Theresa May ‘to KEEP pensions triple lock due to General Election voter backlash fears’

The Prime Minister avoided providing definite answers as to whether she may ditch the policy during the last session of PMQs before the General Election. But senior Tory’s have allegedly suggested she may keep the scheme because the financial savings may not be worth the political risk. One senior Tory told the Daily Mail: “It has to be tackled in the long run, but I suspect in the end we won’t touch it in the manifesto. “It is not sustainable in the...

April 27, 2017
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27Apr

UK should scrap state pensions for the richest 5-10%, says OECD

The UK should scrap state pension payments for the richest retirees, the Organisation for Economic Cooperation and Development (OECD) has said. The Paris-based think tank has said that slashing payments for the wealthiest 5-10 per cent of people would “free up resources” to raise pensions for the less well off. Under the current system, every UK citizen is eligible to receive a full state pension once they hit retirement age, providing they have made 30 years’ of National Insurance contributions. Speaking to...

April 27, 2017
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26Apr

UK. Hundreds of thousands risk being over-taxed on their pension

Royal London estimates that around 800,000 people under state pension age are receiving pensions but should be non-taxpayers because their total income is below the personal allowance. The company is urging those individuals to check that they are paying no tax and to apply for a refund if they have been over-taxed. This may be a particular issue for those who have multiple sources of taxable income such as a wage and a pension or multiple pensions. In some...

April 26, 2017
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24Apr

Labour joins calls for stronger pension protections after master trust closes

Labour has joined calls for greater protections to be given to members of workplace pension schemes, after New Model Adviser® revealed how one such scheme closed to new members. Our story raised alarm bells after warnings were made last year by then pensions minister Ros Altmann that master trusts had ‘shockingly’ been set up with no customer protection regime in place. Though protections are now in the pipeline, pension scheme members’ savings could be put in peril by further master trust...

April 24, 2017
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24Apr

Voters furious at heartless Tory plans to raid pensions and hike taxes after the election

Angry voters have rejected Theresa May’s heartless plan to hike taxes and raid pensions after the election. A new poll shows nearly a third of people are less likely to support the Tories following Mrs May’s refusal to rule out tax rises or back the triple-lock on pensions. The resounding thumbs-down for the Prime Minister came as she dodged the press, public and awkward questions yesterday by doing a disappearing act. Instead, she sent out floundering ministers to face the music –...

April 24, 2017
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21Apr

UK. Tata Steel offers £520m pensions payment in bid to secure future

Tata Steel could pay more than £500m into its UK pension scheme as part of a deal with regulators that involves the Pension Protection Fund taking a stake in the business. The Indian-owned company needs to find a solution to its pension scheme to secure the future of its UK operations, which employs 8,000 workers and includes the Port Talbot steelworks in south Wales. Tata Steel is trying to hive off its historic liabilities before merging its European steel operations...

April 21, 2017
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21Apr

UK. Regulator pledges to act quickly on DB pension problems

The Pensions Regulator (TPR) has promised to act quickly when it identifies problems with defined benefit (DB) schemes. In its corporate plan for 2017-2020 TPR also said master trust regulation would be a priority. TPR will spend an additional £7.9 million in 2017-18 compared to last year, £3.5 million of which will be spent on the implementation of a master trust authorisation regime and an increase in frontline resources to tackle defined benefit failures more efficiently. The remainder is associated with the...

April 21, 2017
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20Apr

UK. Ready or not – a new data protection regime is coming

The pensions industry has one year to prepare for new regulations coming its way. Europe's new data protection legal framework is set out in the General Data Protection Regulation (GDPR) which will come into force in all EU Member States on 25 May 2018, including the UK. While the changes are not radically different to the current legal requirements, there are important developments that the pensions industry needs to be aware of ahead of May 2018. Key points 1. A new...

April 20, 2017
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19Apr

BMW strike continues in the UK and Mini car production halts

Workers at three BMW plants in the UK are staging a one-day strike in a row over pensions. The walkout, the first by BMW staff in Britain, is part of a wave of stoppages at the carmaker over the closure of a final-salary pension scheme. The Unite union, which organised the action that has halted output of the Mini, called the strike a last resort and accused BMW of "pension robbery". BMW urged the union to return to the negotiating table. According to...

April 19, 2017
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