All Pensions articles – Page 144
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Opinion
Mark Baker: Employers must respect staff attitudes to pension fund risk
Among most employers, it is conventional to use lifestyle or target date funds. For younger workers, the money is held in equities, then over time it is switched into bonds and cash. Often the member can nominate a planned retirement date and the lifestyling switches are geared towards that date; ...
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Article
Auto-enrolment opt-out rates lower than expected
Before the auto-enrolment roll-out began last October, it was predicted employers could expect opt-out rates of 20% to 30%.But McDonald’s Restaurants, for example, has seen only 2.4% of its hourly-paid employees and 2.7% of its salaried staff that were auto-enrolled on 1 January 2013 opt out.The fast-food retailer has 37,000 ...
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Article
Peter Reilly: Does paternalism still have a place in benefits?
In the left corner were those who felt defined benefit schemes should be retained because they ensured employees could look forward to a secure financial future. In the right corner were those that favoured defined contribution schemes because of their greater transparency, individual choice and flexibility.This was, in part, a ...
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Article
Buyer's guide to pension modelling tools
Getting staff to recognise this gap is a challenge, but employers can now call on interactive pension modelling tools to help get the message across.Tools vary greatly. Some are fairly simple, designed to provide a snapshot of one particular pensions issue, such as the Money Advice Service’s (MAS) automatic-enrolment toolkit, ...
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Article
HMRC confirms VAT payable on pensions consultancy charges
HMRC also said organisations that supply advice and assistance to employers around the implementation and ongoing administration of contract-based DC schemes must establish two matters to determine the VAT treatment: what is the nature of the service supplied and who is the recipient of that service?Employers will normally be able ...
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AnalysisThe pros and cons of using lifestyle investment strategies for pension funds
IF YOU READ NOTHING ELSE, READ THIS…Lifestyle strategies progressively switch pension scheme members into bonds as they approach retirement.Although lifestyle options have done well over the past decade, this has been a consequence of rising bond markets.Providers have been devising diversified funds that are actively and tactically managed so members ...
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Article
European Commission drops pension solvency requirements
The European Commission has dropped proposed solvency requirements from an overhauled pensions directive that will be put forward this autumn.The Institutions for Occupational Retirement Provisions directive, which is aimed at improving the governance and transparency of pension schemes in the European Union (EU), will no longer include the issue of ...
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Article
Pension liabilities up more than 60% in five years
UK pension liabilities have increased by more than 60% in five years, according to research by KPMG.The professional services organisation’s 2013 Pensions accounting survey, which had 305 respondents, found that this increase, measured over the period since January 2008, is due primarily to falling yields on AA corporate bonds, which ...
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Article
High levels of pensions auto-enrolment awareness
Almost all (98%) respondents are aware of pensions auto-enrolment, compared to the 20% who said the same in 2011, according to research by the Institute of Directors (IOD).Its research, which surveyed 1,327 IOD members, found that three-fifths (62%) of respondents said they were confident that they were ready to auto-enrol ...
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Article
Nest launches auto-enrolment video
The National Employment Savings Trust (Nest) has launched a video to help employees through the auto-enrolment process.Its Going halves video, which aims to help employees understand the importance of employer contributions, went live on Nest’s social media channels on 22 May.The video focuses on a day in the life of ...
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Article
NSPCC completes pension buy-in
The National Society for the Prevention of Cruelty to Children (NSPCC) has completed a pension insurance buy-in for its defined benefit (DB) pension scheme.The buy-in, which covers £63 million of pensioner liabilities, was concluded with Pension Insurance Corporation (PIC).The transaction also allows the trustees to defer meeting the cost of ...
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Analysis
The pros and cons of using multiple pension plans for auto-enrolment
IF YOU READ NOTHING ELSE, READ THIS…Using multiple pension schemes will not suit all employers.Running multiple schemes can be confusing and may increase communication costs.Communication strategies must clearly differentiate the benefits of each scheme.The Pensions Regulator (TPR) requires all workplace pension schemes to meet its qualifying criteria for auto-enrolment. A ...
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ArticleFTSE-350 pension deficits hit £100 billion
FTSE-350 pension deficits rose above £100 billion over April 2013, according to research by consultancy Mercer.Its Pensions risk survey, which collected data from 320 UK pension schemes, revealed that the estimated aggregate IAS19 deficit for FTSE-350 defined benefit (DB) pension schemesstood at £108bn at 30 April 2013, compared to a ...
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Article
Awareness of pension tax efficiency is on the rise
More people are aware of the tax efficiencies around pensions than a year ago, according to research by Standard Life.Its research, which surveyed more than 2,000 UK adults, found that more than a third (39%) respondents are aware that the government will automatically add £1 for every £4 they invest ...
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Article
Retail group records £31m DB pension net gain
Home Retail Group’s defined benefit (DB) pension scheme has recorded a net exceptional gain of £31.3 million since it was closed to future accrual from 31 January 2013.This includes a non-cash curtailment gain of £37.4 million, arising from the one-off reduction in the scheme’s liabilities because members ware no longer ...
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Article
Increased workload top auto-enrolment concern
Two-thirds of respondents are concerned that pensions auto-enrolment will increase workloads for their HR and payroll departments, according to research by recruitment firm Hays.The research surveyed more than 400 employers which attended a series of seminars held by Hays in partnership with Barclays Corporate and Employer Solutions, and the National ...
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Article
FTSE 100 prepared to pay 10% in DC pension contributions
FTSE 100 employers with defined contribution (DC) pension schemes are prepared to pay an average of 10% of salary into employees’ pensions, according to consultancy Towers Watson.Its annual FTSE 100 Defined contribution pension scheme survey, which questioned 90 of the FTSE 100 employers, found that, where employers provide the same ...
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Article
8% opt out for auto-enrolment at Dairy Crest
EXCLUSIVE: Dairy Crest has seen 8% of employees who were auto-enrolled in April opt out of its pension scheme.Around 60% (2,589) of employees have been auto-enrolled into a new compliant section of the stakeholder scheme, while 208 have opted out.Simon Cumpsty, head of employee relations and reward at Dairy Crest, ...
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Article
ABF and Finmeccanica shortlisted for DC investment strategy
Associated British Foods and Finmeccanica UK are among the employers shortlisted for the ‘Best defined contribution (DC) pension default investments’ at the Employee Benefits Awards 2013.For this category, the judges looked at a variety of factors, including: What types of investment make up the DC scheme’s default investment option? Is ...
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Article
Marine Systems appoints DB pensions adviser
Global Marine Systems has appointed Aon Hewitt to provide investment consulting services for its defined benefit (DB) pension scheme.The installer of sea cables for the telecommunications industry’s pension scheme has 450 members and assets of £90 million.Roy Webber, chairman of Global Marine Systems Trustees, said: “Our scheme was in need ...