All Pensions articles – Page 32
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ArticleHow will the Spring Budget 2020 affect pay and benefits?
Chancellor of the Exchequer Rishi Sunak delivered the Spring Budget speech to the House of Commons on Wednesday 11 March 2020. Below is a summary of the key announcements that could impact pay and benefits strategies:National insurance contribution threshold to rise to £9,500 from April 2020National living wage projected to ...
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Case StudiesCo-op transfers employees to a more flexible defined contribution scheme
In October 2015, food and retail business Co-op closed its defined benefit (DB) pensions arrangement and transferred employees out to a defined contribution (DC) group personal pension (GPP) scheme.During the change, the existing £8 billion DB scheme stayed as was, with all existing accruals retained. In terms of future pension ...
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AnalysisBack to basics on defined benefit to defined contribution pension transfers
Need to know: Defined benefit (DB) to defined contribution (DC) transfers are becoming increasingly popular, and employers should understand the basics to help staff make the right choices.Employees looking for greater flexibility must also understand and be comfortable with the higher level of risk associated with DC schemes.Many individuals would ...
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ArticleTapered annual allowance threshold for pension tax relief to increase by £90,000
Budget 2020: Chancellor Rishi Sunak announced today (11 March 2020) that that the tapered annual allowance threshold for pensions tax relief will be increased by £90,000.This means that from 2020/2021, the threshold income will be £200,000; those employees that earn below this level will not be affected by the tapered ...
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OpinionTony Pugh: Delegate to accumulate – how to win back time by changing pension schemes
If you asked most employers what their biggest business priorities are for this year, I am confident that ‘spending more time on the pension scheme’ would not feature very highly.In fact, Aon’s UK DC pension survey 2020, published in February 2020, showed that 35% of employers with their own trust-based ...
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ArticleTPR launches consultation on DB pension scheme funding
The Pensions Regulator (TPR) has published a consultation on a revised code of practice for defined benefit (DB) scheme funding.The results of the consultation will enable TPR to set a benchmark for good standards of compliance, expected to come into force at the end of 2021. These will be implemented ...
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OpinionPaul McGlone: Government priority should be to better look after pension savers
Consensus is often difficult to come by, but in a recent Society of Pension Professionals (SPP) poll on what the government's pension priorities should be in 2020, agreement was not hard to find. Based on what our members said, the priority is ultimately to better look after pension savers.We asked ...
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ArticleThe Pensions Regulator urged to address financial risks associated with climate change
In the coming months, the government has asked that The Pensions Regulator (TPR) set out a strategy to deal with the financial risks associated with climate change. In an open letter to Charles Counsell, chief executive at TPR, Pete Searle, director of private pensions and arm’s length bodies partnership at ...
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AnalysisHow to quantify the value of additional pension contributions
Need to know:Part of engaging staff with pension contributions is aligning these with other savings vehicles, and showcasing the beneficial deal that is on offer.Breaking down monthly costs into pounds and pence can help contributions seem more manageable, as can bringing far-off goals forward with shorter-term achievements.Asking employees to give ...
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Case StudiesFord uses data to analyse the value of pension contributions across the globe
Image credit: r.classenInternational automotive manufacturer Ford spends approximately $1 billion (£772,195,000) per year on pensions for its employees, spanning 36 countries and more than 120 different schemes. In the UK alone, 10,000 members of staff are enrolled in either defined contribution (DC) or defined benefit (DB) arrangements.Quantifying the value of ...
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OpinionAlice Honeywill: The value of additional contributions in closing the gender pension gap
While we await government reforms on pension policy and wider industry change to tackle the gender pension gap, I find myself asking one question: what action can be taken right now?More specifically, what steps can employers be taking to make small, yet potentially effective, changes?The most widely discussed initiative is ...
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ArticleOne in 10 believe their pension scheme investments align with ESG best practice
Less than one in 10 (9%) employers believe that their pension scheme investments align with environmental, social and governance (ESG) factors, according to research by Howden Employee Benefits and Wellbeing.Rules introduced in October 2019 mean that pension scheme trustees are to required to outline their policies on financially material investment ...
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OpinionKate Gardner: What does the landmark veganism ruling mean for employers?
In a major step forward in employment law, a tribunal has ruled that ethical veganism is a philosophical belief, meaning that an employee could rely upon veganism as one of the nine protected characteristics covered by the Equality Act 2010.While this is great news for employees, how will it affect ...
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ArticleFormer head of Yately Industries for the Disabled jailed for pensions fraud
The former head of charity organisation Yately Industries for the Disabled, Patrick McLarry, has been jailed for five years for defrauding its pension scheme.Investigations by The Pensions Regulator (TPR) discovered that between 2012 and 2013, during his tenure as the director of VerdePlanet, the corporate trustee of the Yately Industries ...
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ArticleTPR announces new measures to improve standards of trusteeship and protect savers
In its response to its Future of Trusteeship and Governance consultation, The Pensions Regulator (TPR) has announced that it will be taking new measures to protect pension savers and improve member outcomes.The consultation, which took place between July and September 2019, received 114 responses from a mix of layperson and ...
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OpinionClaire Goodby: Ministry of Justice ruling could have significant impact on pensions
In December 2019, the Supreme Court upheld part-time judges’ claim for equal pensions treatment, a ruling that could have a financial impact on schemes and sponsoring employers.Prior to this case, claims for unfavourable treatment towards part-time workers needed to be brought within three months of the end of the part-time ...
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ArticleMerchant Navy Officers Pension Fund completes £1.6 billion buy-in agreement
The Merchant Navy Officers Pension Fund (MNOPF), worth approximately £3 billion, has reached a £1.6 billion buy-in agreement with Pension Insurance Corporation (PIC).The buy-in, announced today (10 February 2020), covers members affected by fund’s longevity swap, which was completed in 2014, was structured as an insurance agreement between the trustee ...
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ArticleAWH Group Pension Scheme completes £2.3m buy-out
The AWH Group Pension Scheme has completed a bulk annuity buy-out transaction worth £2.3m. The AWH Group Pension Scheme provides for employees of specialist textile manufacturer AW Hainswoth; the transaction was insured through Aviva, and was completed by K3 Advisory and H&C Consulting Actuaries.Through the process of this buy-out, the ...
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ArticleThe Pensions Regulator confirms £2,000 fine for Financial Conduct Authority Pension Plan
The Pensions Regulator (TPR) has confirmed that it issued a £2,000 fine to the Financial Conduct Authority (FCA) Pension Plan, due to non-compliance with chair’s statement regulations. After updating its penalty policies in December 2019, TPR confirmed that non-compliant chair’s statements are subject to a mandatory fine of between £500 ...
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Article£2.23 billion withdrawn using flexible pension rules in quarter four of 2019
In quarter four of 2019, 327,000 individuals made a total of 828,000 pension withdrawals, amounting to £2.23 billion overall, according to HM Revenue and Customs (HMRC).Analysis by HMRC found that this was an 18% increase from the £1.9 billion withdrawn in the same period of 2018, and a 24% increase ...