News – Page 99
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Pension deficits rise to £550 billion
Pension deficits rose by more than a third to £550 billion in 2012, according to research by Xafinity Corporate Solutions.The research, which is based on all UK defined benefit (DB) pension schemes using FRS17 and IAS19 accounting rules, found that, despite some brief optimism in September 2012, annual deficits ended ...
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Auto-enrolment will improve engagement
More than half (63%) of respondents agree with the idea of auto-enrolment, according to research by the national employment savings trust (Nest).Its Nest insight report, which draws on five years’ worth of research and evidence from a number of sources, including its own research, found that 67% of respondents agree ...
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DB pension schemes close at record rate
Defined benefit (DB) pension schemes in the private sector are closing to new members at the fastest rate on record, according to research by the National Association of Pension Funds (NAPF).The NAPF Annual survey, which was conducted among 1,018 pension schemes with a total of nine million members, found that ...
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Pension regulators should work together on DC plans
The Pensions Regulator (TPR) published a consultation on trust-based DC schemes, as well as an analysis of the work it will carry out with the Financial Services Authority (FSA) on work-based personal pension rules and guidance. Meanwhile, the Office of Fair Trading published a DC market study.TPR’s consultation is on ...
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Auto-enrolment concern over employer pension contributions
Research published by Aon Hewitt in January found that nearly one in three employers have considered reducing contribution levels for staff being auto-enrolled into existing defined contribution (DC) schemes.James Patten, principal consultant at Aon Hewitt (pictured), said: “If employers were to auto-enrol non-members into their current scheme on the basis ...
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Call for DB pensions evidence
The Department for Work and Pensions (DWP) has called for evidence on the impact of funding defined benefit (DB) pension schemes on investment and growth.The DWP has asked two questions:Should employers undergoing valuations of DB pension deficits be allowed to smooth the calculations of their asset and liabilities?Should The Pensions ...
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Cookson Group agrees second pensions buy in
Cookson Group, which de-merged its performance materials division in December 2012 to form Vesuvius, has signed a second bulk-annuity policy for its defined benefit (DB) pension scheme.Employees who retire in each of the next three years will have their pensions agreed on insured terms with provider Pension Insurance Corporation.The first ...
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Aegon UK launches auto-enrolment product
Aegon UK has launched an auto-enrolment product, SmartEnrol, in time to support its first pension schemes that reach their staging dates this month.The product is available to employers with new and existing Aegon group pension schemes. It will allow employers to manage employee categorisation, communication, new entrants and payment.In February ...
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Vestey Group enters pension buy-in
The Vestey Group has entered into a buy-in arrangement for its Western United Group pension scheme, the defined benefit (DB) scheme for its current and former employees.The transaction, with insurer Rothesay Life, involved a £115 million exchange of UK gilts for a bulk annuity insurance policy to secure a portion ...
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The Pensions Trust sets charging structure
The Pensions Trust has announced details of the charging structure for funds offered via its auto-enrolment platform, SmarterPensions, which is set to launch on 4 March 2013.The majority of the fund range will have an annual management charge (AMC) set at 0.45%. SmarterPensions, which will be fiully auto-enrolment compliant, is ...
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WH Smith selects auto-enrolment system
WH Smith has selected an administration system to comply with its auto-enrolment obligations from 1 March 2013.The system automatically identifies and enrols relevant employees into the chosen pension scheme, provides communication and administration processes, and handles refunds if an employee opts out.The system is provided by Ceridian UK, which already ...
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Claybrook launches mobile pensions access
Pensions software provider Claybrook has launched a service that enables employees to access their workplace pension information via a mobile phone or tablet.The service is compatible with mobile platforms including Windows Phone, Apple iOS and Google Android.Staff are able to check fund valuation, manage investments online, calculate their estimated pension ...
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FTSE 250 pension deficits reach £9 billion
The total deficit of FTSE 250 pension schemes as of 30 June 2012 is estimated to be £9 billion, up from £6 billion in 2011, according to research by JLT Pension Capital Strategies.The FTSE 250 and their pension disclosures: a quarterly report found that deficit funding has increased in response ...
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Barnardo’s proposes to close DB pension
Barnardo’s has announced to staff a proposal to close its defined benefit (DB) pension scheme to future accrual from 31 March 2013.Employees at the children’s charity will be offered access to a defined contribution (DC) pension scheme from April 2013, which will be more generous than the government requirements for ...
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Jelf appoints auto-enrolment consultant
Jelf Employee Benefits has appointed Caroline Burnham auto-enrolment consultant.Burnham will project manage employers in the run up to their staging date and ensure employers are prepared for their new duties.She will also be the lead on the development and implementation of the organisation’s auto-enrolment software, AE Manager.Alan Milward, corporate benefits ...
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FTSE 350 pension scheme deficits static in 2012
Accounting deficits for FTSE 350 organisations’ defined benefit (DB) pension schemes in the UK showed little increase in 2012, according to research by Mercer.Its Pension risk survey found that the estimated deficit for DB schemes stood at £62 billion at 31 December 2012, compared to a deficit figure of £61 ...
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Chamber of Shipping completes pension buy-in
The trustees of the UK Chamber of Shipping’s defined benefit (DB) pension plan have concluded a buy-in arrangement for the scheme.The transaction covers £40 million of pension liabilities, which represent all of the plan’s current pensioner members.The UK Chamber of Shipping is the trade association for the UK shipping industry ...
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Employers shift launch dates for auto-enrolment
The Co-operative Group’s auto-enrolment staging date was 1 November 2012, but it built in the legal three-month postponement period so the first pension contributions come out of employees’ pay in February 2013.Paul Macro, head of defined contribution (DC) at Mercer, said this was a common approach for many retailers because ...
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Confusion over charges for pension advice
It came just weeks before the retail distribution review (RDR), which scraps commission on many financial products, came into effect on 31 December.On 26 November, pensions minister Steve Webb wrote to Otto Thoresen, chair of the Association of British Insurers (ABI), saying his department was to carry out a policy ...
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Pension allowance changes revive interest in DB plans
George Osborne announced on 5 December that the annual pension allowance on which people receive tax relief will be cut from £50,000 to £40,000 and the lifetime allowance will fall from £1.5 million to £1.25 million from 6 April 2014.Jackie Holmes, senior consultant at Towers Watson, said: “Previously, the allowance’s ...