All Pensions articles – Page 115
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ArticleSuppliers do not give value for money for pension plans
Nearly three-quarters (71%) of delegates at the National Association of Pension Funds (NAPF) Investment Conference do not believe pension funds are getting value for money from consultants, providers and active asset managers.During a panel debate, which followed the poll, Robert Brown, chairman of the Global Investment Committee at Towers Watson, ...
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ArticleStaff retirement income not a priority for employers
Only 15% of respondents said their main reason for providing a defined contribution (DC) pension scheme is to ensure their employees save for an adequate retirement, according to research by Towers Watson.Its DC pension strategy survey, which surveyed 126 employers, found that 65% of respondents cited market competition as their ...
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OpinionJonathan Watts-Lay: Staff need education on investment options
Despite this, news headlines highlighting unfairness in the annuity market for those who are retiring and will buy an annuity now (about 400,000 people a year) are commonplace.Data from Money Advice Service annuity comparison tables at 3 February 2014 suggests that, of employees and pension scheme members who relied on ...
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ArticleTPR and FCA launch DC pension regulatory guide
The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have published a joint guide that sets out how they will regulate workplace defined contribution (DC) pensions.The Guide to the regulation of workplace defined contribution pensions, which is aimed at pension providers, advisers and trustees, outlines each regulator’s approach, and ...
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OpinionDamian Stancombe: Will DC pension members have too much flexibility?
Chancellor George Osborne’s announcement has effectively turned DC arrangements into later life savings vehicles rather than a retirement vehicle.Employees are no longer required to use all or part of their pension pot to secure an annuity income until death.Instead, the government has, in my opinion, wrongly put full trust in ...
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ArticleEuropean court rules DC pensions could be exempt from VAT
The Court of Justice of the European Union (CJEU) has ruled that defined contribution (DC) pension schemes could be exempt from value-added tax (VAT).In case of ATP Pension Services, the CJEU has concluded that a DC pension arrangement may qualify as a special investment fund, meaning that fees for managing ...
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ArticleTrivial commutation limits to increase
The government has increased the trivial commutation limits, from £18,000 to £30,000.Trivial commutation is the opportunity, offered by pension providers, to convert 100% of a small pension into a one-off cash payment.The cash received is known as a trivial commutation lump sum.In the 2014 Budget, Chancellor George Osborne announced that ...
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ArticlePension drawdown changes take effect
A number of changes to the UK pension system, which were announced in the Budget 2014 on 19 March, take effect on 27 March, with the publication of the Finance Bill 2014.In the Budget 2014, Chancellor George Osborne (pictured) announced greater flexibility in the way employees retiring with defined contribution ...
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ArticlePension charges cap could stifle industry
A cap on pension charges could stifle the innovation and creativity needed in pensions to provide better retirement outcomes for employees.Speaking in a session titled Does cheap mean low quality? at the National Association of Pension Funds (NAPF) Investment Conference on 6 March, James Churcher, pensions manager at Abbott Laboratories, ...
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Case StudiesWolseley UK builds an engaging benefits offer
Now the construction and building products distributor, a subsidiary of global organisation Wolseley, is focused on its corporate strategy, including its principles, its employees, and transforming the business to stay ahead of the competition.Neil McCawley, head of reward, benefits and policy at Wolseley UK, says: “People are one of our ...
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ArticleGovernment to ban public sector pension transfers
The government is to ban employees from transferring out of public sector defined benefit (DB) pension schemes under proposals announced by Chancellor George Osborne in the Budget 2014.This coincides with the government’s announcement of a radical overhaul of defined contribution (DC) pensions in the UK, which will enable anyone aged ...
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AnalysisBack to basics on diversified growth funds
A diversified growth fund is managed actively so that the range of asset classes changes over time, with the aim of delivering a reasonable rate of return but with less risk than a single asset fund.If you read nothing else, read this …A diversified growth fund invests in a broad ...
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ArticleCompulsory pensions annuitisation scrapped
Employees will no longer have to purchase an annuity to convert their pension pot into retirement income, under new measures announced by Chancellor George Osborne in the 2014 Budget.From April 2015, DC members will have the choice of taking their pension wealth as a lump sum, drawdown, or an annuity.In ...
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ArticlePersonal allowance increase could impact auto-enrolment eligibility
The increase in the personal allowance to £10,500 a year could mean fewer employees are automatically enrolled into a workplace pension scheme.The increase, announced in the Budget 2014 by Chancellor George Osborne, will take effect from April 2015.Consequently, the average basic-rate taxpayer will pay £805 less income tax per year ...
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Article
Santander streamlines pensions admin
Santander UK has streamlined its pension administration services for around 100,000 employees across its UK trust-based defined contribution (DC) and defined benefit (DB) pension schemes.The bank previously used a number of different administrators for its pension schemes, but has now appointed JLT to administer all its UK schemes.Active, deferred and ...
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AnalysisHow to educate staff about at-retirement choices
If you read nothing else, read this…At-retirement education programmes should focus on employees’ desired lifestyle when they stop work.Employers should also consider employees who may want to work longer.Competent pensions managers can offer cost-effective financial education programmes in-house.Employers should first focus on educating employees about the lifestyle changes they are ...
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ArticleABI sets out changes for annuities market
The Association of British Insurers (ABI) has announced a plan to ensure people get more help to achieve better outcomes when they turn their pension savings into a retirement income.The plan, which acts on challenges set out in a report from the Financial Conduct Authority on annuities, will be implemented ...
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AnalysisThe impact of an ageing workforce on a benefits strategy
If you read nothing else, read this…Older employees may choose to work because they enjoy their job, not because they can’t afford to retire.An ageing workforce requires employers to rethink the make-up of their benefits.Workforce planning should be about employees’ skillsets, not their age.Employees aged over 50 make up 27% ...
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ArticleGovernment publishes response to auto-enrolment consultation
The government has published its response to a consultation on exceptions to the employer duties around pensions auto-enrolment.The consultation, Technical changes to automatic-enrolment: public consultation on draft regulations and other proposed changes, which was published in March 2013, described proposals to insert a clause in the Pensions Bill to provide ...
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ArticleAdvisers believe employers are disengaged with auto-enrolment
Two-thirds (65%) of respondents believe employers are disengaged with auto-enrolment, according to research conducted by financial research organisation Defaqto on behalf by Now: Pensions.The research, which surveyed 264 independent financial advisers, found that 89% of respondents are concerned that employers lack the knowledge to make informed decisions about the appropriate ...