All Pensions articles – Page 125
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AnalysisHow much pension fund choice should employers offer their workforce?
If you read nothing else, read this…Evidence shows that the greater the choice of pension funds, the less engaged employees may become in the scheme. Some employees in some market sectors, such as financial services, will always be more engaged than others. Many employers just want to get through auto-enrolment ...
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Article
BA switches DC pension investments
British Airways (BA) has switched the investment options available through its trust-based defined contribution (DC) pension scheme in order to lower pension scheme charges.Under its new arrangement, provided by BlackRock, the annual management charge (AMC) will reduce from 0.23% to 0.15%.Since its auto-enrolment staging date in January 2013, 13,500 of ...
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Article
Finmeccanica has low pensions opt-out post auto-enrolment
Finmeccanica Group has achieved 99.3% pension take up after auto-enrollling employees at its two main UK operations into its trust-based defined contribution (DC) pension scheme.The aerospace and defence manufacturer first automatically-enrolled staff at AgustaWestland, followed by employees at Selex ES.Finmeccanica introduced a bespoke website to guide employees through their auto-enrolment ...
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Case StudiesMarriott Hotels considered pension fund choice in auto-enrolment decisions
Its staging date was April 2013, but it postponed auto-enrolling its workforce until 1 July 2013 with the help of its adviser, Berkeley Burke, which also manages the organisation’s private medical insurance and group life assurance .Sarah Newsome, manager, employment law/compensation and benefits, Marriott Europe at Marriott Hotels, says: “Fund ...
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Article91% of HR professionals are pension scheme members
The Employee Benefits Salary survey 2014 , which questioned 361 people with responsibility for managing benefits and reward in UK organisations, found that three-quarters (75%) of respondents are active members of a defined contribution (DC) scheme , while just over a quarter (27%) are active members of a defined ...
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Article5% DC pension contribution most common for HR professionals
The Employee Benefits Salary survey 2014 , which questioned 361 people who are responsible for managing benefits and reward in UK organisations, found that 9% pay in 10% or more of salary. Under auto-enrolment legislation, current minimum contribution levels are set at 1% for employees and 1% for employers. But ...
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AnalysisInterview with Sally Purbrick, head of reward, Anglian Water
“The days have gone in Anglian Water when the traditional HR department was just seen as something that brings people into the organisation and pays them,” she says.“It’s about the value we can bring. Specifically, the reward area, and our strategies around linking personal performance to reward, pushes the reward ...
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AnalysisAre default investment funds fit for purpose?
If you read nothing else, read this…Employers must offer staff a default fund under auto-enrolment legislation.But the funds are, arguably, not fit for purpose because of their legacy issues and restrictive asset allocation.Regulatory guidance on default fund governance should help default funds to evolve.Pensions auto-enrolment has been dubbed one of ...
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AnalysisWhat should future default fund strategies look like?
If you read nothing else, read this…The default fund strategy of the future should be flexible enough to address employees’ diverse retirement income needs.Asset allocation should be more diverse and include illiquid assets, such as property.But employers must focus on employees’ retirement income, rather than investment returns.Flexibility should be at ...
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AnalysisTop tips for managing default fund strategies
If you read nothing else, read this…Employers should start by identifying their employees’ retirement needs.Employers have a duty of care to ensure employees are financially able to retire.This requires employee education and engagement.Workforce needsEmployers should start by identifying the retirement income needs of their workforce.Andy Dickson, investment director, UK institutional ...
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Video: Madeline Forrester: Default investment strategy should be member-led
Employers’ default pension strategies need to be member-led and cater for their organisation’s average pension scheme member, said Madeline Forrester, head of institutional sales at Axa Investment Managers, during an interview with Clare Bettelley, associate editor at Employee Benefits.“[Employers] need a variety of talents within the group leading [the strategy], ...
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Article
John Lewis plans to cut final salary pension scheme
The John Lewis Partnership has proposed to cut its final salary pension scheme and restructure its pension arrangements in a bid to reduce costs.In March 2013, its defined benefit (DB) pension scheme recorded a pension deficit of £840 million. At the same time, John Lewis Partnership announced it would be ...
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AnalysisHow should employers communicate default funds?
If you read nothing else, read this…Employers must be honest with staff about their savings goals.Employees need to understand how long they may need to work to afford their desired retirement lifestyle.Employers should remove all jargon from their communications.Simon Chinnery, head of UK defined contribution (DC) practice at JP Morgan, ...
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ArticleDebi O'Donovan: Employers must collaborate on pension outcomes
Firstly, employers face major constraints in the pension provider market. Default funds have been evolving over the last 20 years and have yet to come into their own as a distinctive, standalone investment choice, rather than an amalgamation of legacy funds and concepts.Secondly, the defined contribution (DC) market operates on ...
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Video: Spencer Roach: Diversity key to Cisco's new default fund
Diversity is at the heart of Cisco’s new default pension fund, said Spencer Roach, total rewards manager at Cisco System, during an interview with Clare Bettelley, associate editor at Employee Benefits. He added that the fund choice is underpinned by a lengthy selection process, to ensure that the employer’s final ...
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Video: Chris Curry: Employer demand drives default fund evolution
Employer demand will drive pensions default pension fund development, said Chris Curry, director of the Pensions Policy Institute during an interview with Clare Bettelley, associate editor at Employee Benefits. “As with most things, there’s a supply and demand side [to the market], so I think if employers are really keen, ...
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Video Simon Chinnery: Employers should focus on retirement income, not pot size
Employers should focus on their employees’ retirement income needs rather than the size of their pension pot when devising, implementing and managing their default pension fund strategy, said Simon Chinnery, head of defined contribution (DC) and chairman of the Defined Contribution Investment Forum, during an interview with Clare Bettelley, associate ...
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DOD’s blog: Are DC default funds value for money?
Yesterday the highly insightful team from the Pensions Institute at Cass Business School delivered its latest report: Assessing value for money in defined contribution default funds.I doubt it will top too many bestseller lists, but if everyone who has ever saved for a pension were to read it, it could ...
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DC pensions members may not be getting best value
The value of the defined contribution (DC) pensions market is expected to grow to £1.7 trillion by 2030 from £276 billion assets under management pre-auto-enrolment in 2012, according to a report by the Pensions Institute.But its Assessing value for money in defined contribution default funds report found that members of ...
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Video: LV= to move away from one-size-fits-all default fund
Insurer LV= is in the throes of assessing how to meet the retirement needs of its 5,500-strong workforce as part of a review of the suitability of its default pension fund, said Pete Strudwick, pensions and performance partner at LV=, during an interview with Clare Bettelley, associate editor at Employee ...