October 2017

16Oct

UK. One in five FTSE 100 pension funds at risk of failure in a recession

One in five FTSE 100 ­defined benefit pension schemes would be at risk of failure if Britain entered ­another economic downturn, research reveals. In a “stressed” scenario – such as a recession – the combined pension deficits of the blue-chip index would jump by £100bn, equivalent to four years of pre-tax profits, according to a study by consultants Cardano and Lincoln Pensions. In such a scenario a fifth of FTSE 100 firms would face pension risks worth 30pc or more...

October 16, 2017
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16Oct

UK. Monarch collapse leaves yet another pension fund up in the air

Pensions are the tail wagging the economic dog – sometimes in the strangest ways. Take the high-profile collapse at Monarch Airlines. It’s a sorry story of corporate raiders facing accusations of asset-stripping one of the country’s largest holiday airline businesses and leaving taxpayers to pick up the tab. The once strong, if slightly dated, brand was taken over by private equity financiers to try to make it into another Ryanair. When that failed, it appears the owners could still walk away...

October 16, 2017
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12Oct

UK chancellor: ‘Alive to the risk’ of post-Brexit insurance ‘uncertainties’

UK Chancellor Philip Hammond has said the government was “alive to the risk” that the UK’s withdrawal from the European Union “could in some cases create legal uncertainties as to the status of existing cross-border insurance, pension and other financial services contracts sold under passporting arrangements”. The chancellor’s comments were contained in a letter dated 20 September, which was in response to an earlier written query on the part of Treasury select committee chairperson Nicky Morgan, and which became public...

October 12, 2017
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09Oct

UK. Thousands of families and pensioners at risk of repossession as government scraps crucial mortgage benefit

Thousands of pensioners face potentially losing government help with mortgage payments when the system changes in six months time, an insurance firm has warned. People are being left in the dark over key changes to Support for Mortgage Interest (SMI) due to come into effect in 2018, Royal London claimed. The SMI is currently paid as a benefit direct to a lender to cover interest payments on mortgages, but from April this is replaced by a loan that the firm...

October 9, 2017
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06Oct

UK. Post workers announce 48-hour strike in first national walkout since privatisation

Postal workers will walkout on a 48-hour strike later this month in the first national stoppage since the Royal Mail was privatised four years ago. The strike, involving 111,000 postal workers, will start at 11am on Thursday October 19 in a bitter dispute over pensions, pay and jobs. The strike announcement follows a strike ballot backed by a massive 89% on a turnout of 73% - well above the turnout threshold of 50% set last year by the Tory’s controversial Trade...

October 6, 2017
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04Oct

UK. Royal Mail staff vote to strike over pensions

The Communication Workers Union (CWU) said 73.7% of its 110,000 members cast their votes, with 89% backing a strike. It is the first major vote since the introduction of the Trade Union Act, which requires strike votes to have a 50% turnout. The CWU said the postal executive will meet later this week to determine any potential strike dates. Earlier this year, the Royal Mail announced that it would close its current defined benefit scheme in March 2018. Although the pension...

October 4, 2017
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03Oct

UK. May’s Brexit Budget Offer Is Conditional on Trade, Officials Say

The U.K. will leave a 20 billion euro ($23 billion) hole in the European Union’s budget unless the bloc agrees to give Theresa May the sweeping Brexit trade deal she wants, according to senior British officials. Britain won’t fulfill May’s offer to cover the U.K.’s share of the EU budget through 2020 without a broader Brexit deal, said the officials, speaking on condition of anonymity. The U.K. also hasn’t accepted that it’s liable for a share of the pensions of...

October 3, 2017
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03Oct

UK. Savers who transfer pensions are ill-advised in 53pc of cases, says watchdog

Savers trying to swap their "final salary" pensions for cash face a crackdown from the City watchdog following a damning report into the quality of financial advice they are receiving. Growing numbers of people are swapping final salary pensions for "defined contribution" plans. This involves giving up guaranteed, inflation-proofed income for life, in return for often highly attractive cash offers and greater flexibility over how pensions can be spent. It is thought about 80,000 transfers have taken place this year...

October 3, 2017
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02Oct

UK. Millions to miss out on self-employed pensions revolution

Government plans to solve the self-employed savings crisis are in danger of being derailed as new research reveals as many as three million workers are set to miss out. Last year this newspaper revealed the Department for Work and Pensions was to bring the self-employed into an existing system that means all employers must provide pensions for their staff. The set of rules, known as "automatic enrolment", was introduced in 2012 and have meant an extra eight million are now saving for a...

October 2, 2017
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September 2017

28Sep

UK. Millions may lose promised pension payout

Three million savers in defined benefit pension schemes only have a 50/50 chance of receiving the payouts they were promised, a study has concluded. Some employers were under pressure to meet their pension obligations, the Pensions and Lifetime Savings Association (PLSA) said. High-profile cases such as the BHS collapse have highlighted concerns over the future of workplace pensions. The PLSA said one solution could be the pooling of resources into "superfunds". This would allow companies to pay a fee to transfer...

September 28, 2017
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