Pensions Week articles from August 2008

Pensions Week archives from August 2008

News: Schemes gang up on HMRC over VAT rebate.
August 4, 2008... Byline: Charlie Kirby Capital Cranfield is leading 33 pension schemes in a fight against HM Revenue & Customs (HMRC) over taxation laws for schemes in wind-up. It is seeking to win the right for the schemes' independent trustees to be...

News: Scheme trustees escape HMRC's money laundering registration rules.
August 4, 2008... Byline: Tom Willetts Pension scheme trustees are no longer required to comply with money laundering requirements after a U-turn by HM Revenue & Customs (HMRC). Under guidelines introduced last year, paid pension scheme trustees -...

This week: Information overload.
August 4, 2008... Byline: David Rowley - Editor While I accept it is the role of nearly every pensions expert to point out that most of us are not saving enough for retirement beginning sometime between age 55-65, I am not convinced that it is the role of...

News: Trustees unite to reclaim VAT charges.
August 4, 2008... Byline: Charlie Kirby The Independent Pensions Trustees Group is planning a mass VAT reclamation campaign which could see HM Revenue & Customs (HMRC) face a bill of GBP10m. Susan Andrews, chairman of the group and partner at Pinsent...

News: Cardano placed on performance pay at Trafalgar.
August 4, 2008... Byline: Tom Willetts The GBP1.3bn Trafalgar House pension scheme is to pay its new investment adviser and derivative overlay manager solely on a performance-related basis. The scheme, which recently spurned conventional asset...

News: Conservatives deliver personal accounts alarm.
August 4, 2008... Byline: David Rowley The Conservative party has warned it will not blindly pursue a failing personal accounts system that is failing if it wins the next general election. Talking to Pensions Week, Chris Grayling, shadow secretary of...

News: Annuity services continue to fall short.
August 4, 2008... Byline: Charlie Kirby Over 60% of annuity providers now produce good quality wake-up letters, according to the Financial Services Authority (FSA). However, a number of firms were criticised for the lack of coherent construction of...

News in brief.
August 4, 2008... Prudential has reinsured part of Rothesay Life's non-profit annuity liabilities in a deal worth an estimated GBP350m. The liabilities originate from Rothesay's arrangement to take on the liabilities of the GBP700m Rank pension scheme in...

News: ETV exercises a threat to buyout, says Wood.
August 4, 2008... Byline: Owen Walker & David Rowley Paternoster chief executive Mark Wood has voiced "grave concerns" over schemes encouraging members to leave early, which he believes could give buyout a bad name. Wood said more regulation, and member...

News: Brimming pension pots force execs to halt the flow.
August 4, 2008... Byline: David Rowley So many FTSE 350 executives have pension pots equal to or greater than the lifetime allowance that only half are accruing any further pension. Watson Wyatt calculated this figure from remuneration disclosures in...

News: Letter.
August 4, 2008... That there is a downward trend in defined benefit schemes is undeniable. Increased longevity and clearer identification of the costs and liabilities have ensured this. However, adopting valuation and reporting methods that hide or reduce...

News: Insured schemes will not escape PPF levy.
August 4, 2008... Byline: Tom Willetts Schemes that purchase covenant insurance will still have to pay the Pension Protection Fund's (PPF) scheme-based levy, after an amendment to the pensions bill was withdrawn. The proposal - introduced in the House...

News: Scheme buyout affordability improves.
August 4, 2008... Byline: Tom Willetts Pensioner buyouts are more affordable due to an increase in gilt and bond assets and lower overall costs, according to Paternoster. The firm's quarterly buyout index shows that schemes substantially invested in...

News in brief.
August 4, 2008... The GBP2.3bn Cheshire County Council pension scheme has awarded fixed income mandates to Goldman Sachs Asset Management (GSAM) and Henderson Global Investors. GSAM will manage a GBP127m UK fixed-income mandate, while Henderson will manage...

News: Pressure heightens to close DB plans.
August 4, 2008... Byline: David Rowley Employers should be free to design the pension schemes that suit them and then be left alone, the Confederation of British Industry (CBI) has pleaded. In a message that bemoaned the large amount of legislation and...

News: Price drop causes rethink of property use as pension.
August 4, 2008... Byline: David Rowley Employees planning to use property to fund their retirement have had their confidence rocked, new research has revealed. MetLife Europe found that three-quarters of homeowners are either less confident or much less...

News: Insolvency product eases liabilities.
August 4, 2008... Byline: Charlie Kirby A service that releases insolvency practitioners (IPs) from the liabilities of trusteeship after a defined contribution scheme becomes insolvent has been launched by Alexander Forbes. The Trustee Services' Trust...

Asset news: Hedging strategies find favour with funds.
August 4, 2008... Byline: David Rowley UK pension funds hedged around GBP18bn of liabilities in the first six months of 2008, according to a survey measuring liability-driven investment (LDI) activity. The total represents 2% of all defined benefit...

Asset news: Emerging market equity investing on the rise.
August 4, 2008... Byline: David Rowley Emerging market assets now account for 13% of total market capitalisation, according to an analysis of MSCI statistics by Baring Asset Management. This figure has risen almost 1% a year since 1999, and Barings...

News in brief.
August 4, 2008... Absolute return investments saw big inflows in June, according to the IMA. Net retail sales of both onshore and offshore funds all returned to the subdued levels of early 2008, except for the new absolute return sector, which saw inflows...

Current affairs: Head to head.
August 4, 2008... Graham Brown - Pensions manager for a leading charity Written in a personal capacity Your articles about the Trades Union Congress (TUC) research on trusteeship (PW 28.07.08: pages 1 & 6) once again shows the shallowness of the TUC and...

Current affairs: Risk-sharing and sausage machines.
August 4, 2008... Byline: Raj Mody Here is a story you will have heard before. I caught up with a former colleague recently at a dinner party. She is an intelligent lady, mid-30s, works in pensions, lives in a decent apartment, goes on a good holiday three...

The insider: Personal view - Getting involved makes the actuarial valuation process run like clockwork.
August 4, 2008... Byline: Colin Mouque The new funding regime which came into effect from September 2005 demands greater trustee participation than the previous, minimum funding requirement regime. The Pensions Regulator's toolkit illustrates this nicely by...

The insider: Technical view - Passive tools for active management.
August 4, 2008... Byline: Manooj Mistry The pros and cons of passive investment versus active management are well documented. They are no longer seen as mutually exclusive and it is now more about how passive investing can complement and enhance active...

Industry watch: Governance - UK chiefs enjoy the good life in uncertain times.(Industry overview)
August 4, 2008... Byline: Tom Powdrill A couple of months ago Arun Sarin, outgoing Vodafone chief executive, took the opportunity afforded by his impending departure to have a dig at the shareholder-company relationship in the UK, which he suggested...

Industry watch: Notice board - NAPF events 2008.
August 4, 2008... NAPF hot topic seminar: Trustee self-assessment - tools and guidance September 15, NIOC House, Westminster, 10am-1pm Self-assessment of pension trustees is an essential way of improving scheme governance and the quality of pension...

Industry watch: My life outside pensions.
August 4, 2008... Byline: Helen Miller Helen Miller, marketing consultant at Merchant Investors, engages in firespinning during her time off work, a pursuit that combines the disciplines of dance, rhythmic gymnastics and pyromania. Originating in New...

Pensions workout: Intermediate - Trustee liability - Intermediate level.
August 4, 2008... Changes in legislation and recent court determinations have resulted in increasing duties and obligations placed on trustees: a role that can attach personal liability if things go wrong. Claims can arise for various reasons, but there are a...

On the move: Watkins to continue liability role at MetLife.
August 4, 2008... Byline: Charlie Kirby Emma Watkins is joining MetLife (Europe) Assurance after four years' service at ACE Europe. Reporting to MetLife Assurance's chief executive officer, a position which is currently vacant, Watkins will head up...

On the move: Going places.
August 4, 2008... Wood to build sales relations at Aegon Aegon has appointed Andrew Wood as its regional sales director for the UK, Ireland & Nordic region to strengthen its relationships with other companies. Joining from Aegon Scottish Equitable,...

On the move: Top 4 moves.
August 4, 2008... 01 - Ian Maybury OLD - Maybury was head of insurance actuarial in the insurance and structured solutions team at Citigroup NEW - He moves to Redington Partners to co-manage the firm's quantitative analysts and provide innovative...

News: Corporate insolvencies threaten PPF.
August 11, 2008... Byline: Tom Willetts Experts have raised doubts about the ability of the Pension Protection Fund (PPF) to cope with the economic downturn after a jump in corporate insolvencies. There were 3,560 company liquidations in England and...

News: Everson to head up Eversheds in Birmingham.
August 11, 2008... Byline: Tom Willetts Ingrid Everson has been named head of Evershed's Birmingham office after 15 years at the firm. Returning to the Midlands after spells in the firm's Newcastle and Leeds offices, Everson will head up a 14-strong team...

This week: The revolution starts here.
August 11, 2008... Byline: David Rowley - Editor I have had a mixed response to my rant about all these calculations of FTSE 100, FTSE 250 and FTSE 350 pension debt. Some of you also share my weariness at the mass of fluctuating data that we receive on a...

News: Coal schemes' strategy not right for members.
August 11, 2008... Byline: Tom Willetts The government could face a legal challenge to prevent it from dictating the investment strategy of two multi-billion pound schemes. The GBP13bn Mineworkers' Pension Scheme and the GBP12bn British Coal Staff...

News: Variable annuity costs become more affordable.
August 11, 2008... Byline: David Rowley Standard Life's entry into the variable annuity market heralds an improvement in the affordability of these products, according to Hargreaves Lansdown. The insurer is to launch its variable annuity over the next...

News: Allow us to auto-enrol staff now, says B&CE.
August 11, 2008... Byline: David Rowley B&CE Benefit Schemes, the industry-wide scheme for construction workers, is asking to be allowed to auto-enrol 170,000 employees as early as next year. At present employers are only allowed to auto-enrol employees...

News: Risk policy group wants to limit swaps.
August 11, 2008... Byline: Tom Willetts Pension funds could be barred from investing in some types of asset-backed securities under a blueprint released by an influential group of financial institutions. Under the plan - backed by banks including...

News in brief.
August 11, 2008... Legal & General's buyout business trebled to GBP1.4bn during the first half of 2008. The firm wrote nearly 140 policies, which were dominated by large pension-in- payment contracts. However, individual annuity sales fell to GBP40m due...

News: Trust-based DC urged to use all-MNT boards.
August 11, 2008... Byline: David Rowley Trust-based DC schemes should consider 100% member-nominated trustees (MNTs) to help engage employees better on pensions, according to a chairman of trustees. Simon Baynes, chairman of trustees at Logica DC pension...

News: Providers lack capital to meet buyout demand.
August 11, 2008... Byline: Tom Willetts Insurance firms are struggling to meet demand for buyout solutions - raising serious questions about their capacity, according to research from Aon Consulting. The market's value in the second quarter climbed 80%...

News: Willott backs public sector pension reform.
August 11, 2008... Byline: Tom Willetts Revelations that many senior civil servants are entitled to a pension of GBP60,000 a year has led to calls for a reform of public sector pensions. The appeal from Jenny Willott, Liberal Democrat work and pensions...

News: Rothesay refutes ETV poses threat to buyout.
August 11, 2008... Byline: Tom Willetts Rothesay Life has hit back at accusations that offering members incentives to transfer out of their final salary benefits could discredit the buyout market. The rebuttal follows comments from Mark Wood, chief...

News: Several FTSE firms miss prime buyout chance.
August 11, 2008... Byline: Kalpana Fitzpatrick Three FTSE 100 companies missed out on an opportunity to secure their pension liabilities in full this year, according to Lane Clark & Peacock (LCP). The actuarial firm's analysis of FTSE 100 pension schemes...

News in brief.
August 11, 2008... Hymans Robertson has cleared its initial objective to enrol at least 100 large occupational schemes into its Club Vita service. The club, designed to improve understanding and management of pensioner longevity, has pooled data on the life...

News: Group of 10 schemes leads green mission.
August 11, 2008... Byline: Tom Willetts Prince Charles has brought together 10 of the world's biggest pension schemes to fight climate change through environmental investment. The schemes, which in total manage more than $3trn of assets, are set to...

News: Court ruling finds transfer claimants must act quickly.
August 11, 2008... Byline: Tom Willetts Advisers have won stronger protection from negligence claims over individual pension transfers after a Court of Appeal ruling. The new protection is based on rules that mean negligence claims can be brought up to...

News: Renewable energy has sunny outlook.
August 11, 2008... Lehman Brothers has hailed renewable energy providers as the perfect investment opportunity for pension funds. In a report, the investment bank said the sector offered stable, long-term returns with an inherent inflation linkage,...

Asset news: Japanese firms play to cash strengths.
August 11, 2008... Byline: David Rowley The relatively low price of cash-rich Japanese companies is a boon for stock pickers, according to Nikko Asset Management UK. The UK arm of the Japanese equities specialist has pointed out that 177 companies have...

Asset news: Bramdean fails to perform for council fund.
August 11, 2008... Byline: David Rowley The Merseyside pension fund has so far failed to see a return on its investment in Bramdean Alternatives, the private equity and hedge fund management firm run by Nicola Horlick. The fund has built up a 14.9% stake...

News in brief.
August 11, 2008... Investing in frontier markets has taken a step closer for pension funds through the creation of a new index covering 23 countries. The countries covered include Cyprus, Botswana, Nigeria, Oman, Qatar, Romania, Sri Lanka and Vietnam. ...

Current affairs: Talking heads.
August 11, 2008... Byline: David Rowley 1 - There has been much EU case law around age 65 recently. What is relevant to UK pension schemes? 2 - To what extent do UK schemes have to pay attention to EU case law? 3 - Beyond age 65 developments, what...

Current affairs: Reforms may lead to fewer savers.
August 11, 2008... Byline: Steve Bee Auto-enrolment and the introduction of a government-designed pension like personal accounts is a bit of a distraction. The government is introducing personal accounts and auto-enrolment to ensure that every employee in...

The insider: Personal view - Governance committees would provide a regulatory shelter for DC trustees.
August 11, 2008... Byline: Colin Mayes "Sub prime crisis hits wider markets." "Equity market falls wipe billions off the value of pension funds" - headlines like these do little to help the confidence of pension scheme members. For the large majority of...

The insider: Technical view - Risk-sharing may provide lifeline for DB.
August 11, 2008... At the end of August, the Department for Work and Pensions (DWP) will be collecting responses and reactions to its risk-sharing consultation, but will this lead to a change in regulation later this autumn? With the consultation in full...

Industry watch: Governance - I see active, ethical and political growth.
August 11, 2008... Byline: Tom Powdrill How important are environmental, social and governance (ESG) issues? According to a new report by consultants Watson Wyatt, the consideration of such extra-financial factors could be one of half a dozen...

Industry watch: Notice board - NAPF events and training.(Conference news)
August 11, 2008... NAPF annual conference & exhibition 2008 Better knowledge for better pensions October 8-10 , Scottish Exhibition & Conference Centre, Glasgow This is the event that last year, the then secretary of state for work and pensions, John...

Industry watch: View from the bridge.
August 11, 2008... Byline: Norman Russell BtoB It is time we reclaimed the phrase 'back to basics' (BtoB). It was 1993 when John Major said: "It is time to get back to basics; to self discipline and respect for the law, consideration for others,...

Pensions workout: Advanced - Trustee liability - Advanced level.
August 11, 2008... In recent years, the number of duties and obligations placed on trustees has grown, making the role of trustee more onerous than ever. Trustees who breach these increasingly complex responsibilities may place their personal assets at risk and...

On the move: Hermes makes an alpha hire with Jones.
August 11, 2008... Byline: Tom Willetts Hermes, the investment adviser and fund manager for the BT pension scheme, has named Glyn Jones as chairman, following the retirement of Richard Bernays. Jones will help the firm develop its specialist alpha...

On the move: Going places.
August 11, 2008... Olswang harvests Farmer as partner Olswang has named David Farmer as a partner and head of its pensions group to meet growing demand. Joining from commercial law firm Beachcroft, Farmer will specialise in providing advice on scheme...

On the move: Top 4 moves.
August 11, 2008... 01 - Emma Watkins OLD - Watkins led the trustee liability insurance section at ACE Europe NEW - She moves to MetLife (Europe) to head up business developments for its bulk annuity buyout business Tel: 0845 370 6040 02 -...

News: Beeb bulks up allocation to alternatives.
August 18, 2008... Byline: David Rowley The GBP8.1bn BBC Pension Scheme is to bump up its allocation to alternatives after it provided the one bright note in a poor investment year. High returns in infrastructure and private equity at the end of March...

News: GP Noble a 'cause for concern' for the regulator.
August 18, 2008... Byline: David Rowley An independent trustee firm has been suspended and removed from the Pension Regulator's approved list of trustees due to concern over its activities. The regulator is carrying out an investigation of GP Noble,...

This week: Cometh the hour, cometh the man.
August 18, 2008... Byline: David Rowley - Editor Tucked away in a news in brief item on page 5 is an article all about how baby food manufacturer Nutricia has improved the number of its workforce on target to meet their retirement expectations from 8% to...

News: Lords bid to cut public sector pensions costs.
August 18, 2008... Byline: Tom Willetts A Liberal Democrat peer has tabled an amendment to the pensions bill in a bid to establish an independent commission to review public sector pensions. The move by Lord Kirkwood would set up a body called the...

News: Poor prognosis for ill-health rules dispute resolution.
August 18, 2008... Byline: David Rowley An early settlement to the dispute over new ill-health early retirement rules for local authorities looks unlikely, after doctors claimed their complaints were going unheard. Many local authority pension schemes...

News: Lead plaintiff duo due extra-large settlements.
August 18, 2008... Byline: David Rowley Two local government pension funds stand to gain disproportionately large payouts after becoming lead plaintiffs in a class action against Lehman Brothers. The Lothian Pension Fund and the Northern Ireland Local...

News: Pickering to take chair at Bestrustees.
August 18, 2008... Byline: Kalpana Fitzpatrick Alan Pickering, author of the simplification report on rules governing private pension provision in 2002, is to become chairman of Bestrustees. He will leave Watson Wyatt in January 2009, where he is a...

News in brief.
August 18, 2008... Cable & Wireless has added a diversified growth fund to its range of fund choices for DC scheme members. The fund is targeting a return of 5%+RPI and will invest in traditional assets as well as commodities, currency and infrastructure. ...

News: Employers ramp up scheme contributions.
August 18, 2008... Byline: Tom Willetts Employers are making larger than necessary contributions to their pension schemes, with half overpaying by more than GBP20m a year, according to KPMG. The firm's Pensions Repayment Monitor report estimates 60% of...

News: It's not what you know, it's who you know - if you want to be a trustee.
August 18, 2008... Byline: Tom Willetts A personal recommendation from friends and acquaintances is the most popular way of selecting trustees, according to Trustee GAAPS, the search and selection firm. More than a third of schemes admitted they...

News: FP scheme backs up its liabilities.
August 18, 2008... Byline: Tom Willetts The Friends Provident pension scheme has insured the liabilities of members retiring over the next five years in a GBP135m deal. The arrangement is an extension to a buy-in contract signed in May, where the...

News: Letters - Deficit trackers can prove useful.(Letter to the editor)
August 18, 2008... I read with interest your editorial of August 4 in which you highlighted the increasing number of 'deficit trackers' used to commentate on the varying fortunes of UK pension schemes. Despite being a key protagonist, I share your concern. ...

News: Letter - One member-nominated trustee is enough.
August 18, 2008... Further to the recommendation from the TUC and Simon Baynes of the Logica defined contribution (DC) scheme to increase the number of member-nominated trustees (MNTs) in DC schemes (PW August 11), I would like to highlight the lower standards...

News: Letter - Make pension comparisons more meaningful.
August 18, 2008... You should know better than to report comparisons of pension apples with pears. (PW August 11 - 'Willott backs public sector pension reform'). The very important continuing story of high, top mandarin pensions was undermined by contrasting...

News in brief.
August 18, 2008... Profilic author and senior pension lawyer Robin Ellison has had his latest book published. Pension Fund Investment Law sets out legal issues affecting the decision- making of trustees and their advisers, the legal restrictions and...

News: Collective DC plans fail to excite firms.
August 18, 2008... Byline: David Rowley Demand for collective defined contribution (DC) schemes remains muted two months after the government's proposed legislation to allow them. While several FTSE 100 emplo-yers have voiced strong interest,...

News: Cash transfer regs too soon for trustees.
August 18, 2008... Byline: David Rowley New rules that codify trustees' responsibilities on processing cash equivalent transfers have come in too soon for trustees to adapt, according to Mercer. Draft guidance on the new regulations was published last...

News in brief.
August 18, 2008... The aggregate funding position of defined benefit pension schemes fell to a GBP24.1bn deficit at the end of July. The funding position deteriorated from a GBP8.3bn surplus at the end of June, and a GBP83.3bn surplus at the end of July last...

Asset news: Value of corporate bonds is still outstripping gilts.
August 18, 2008... Byline: David Rowley Current pricing opportunities in corporate bonds are the best they have been for years, according to Henderson Global Investors. The fund manager was underweight in the asset class until the credit crunch, as the...

News: Global equities to thrive despite downturn.
August 18, 2008... Byline: David Rowley Cash constraints on UK and US consumers over the following year are not matched by consumers in other markets, providing hope for global equities. Aberdeen Asset Managers said that while consumer debt expressed as...

News in brief.
August 18, 2008... Corporate bonds remain very attractive investments, despite a gradual rise in default investments, according to Investec Asset Management. The firm said investment grade bonds are offering extremely generous compensation for risk in terms...

In depth: Making waves.
August 18, 2008... Byline: Tom Willetts The current economic turmoil is expected to lead to a glut of personal and corporate insolvencies. Hundreds of thousands could lose jobs, homes or savings. And in the corporate world, thousands of firms could go belly...