Pensions Week articles from January 2004

Pensions Week archives from January 2004

News: South Yorkshire joins US shares watchdog.
January 12, 2004... A major local authority pension fund has signed up to a securities fraud monitoring service with a US law firm in an attempt to avoid getting caught out by Enron and WorldCom-style scandals. The GBP2.3bn South Yorkshire Pensions Authority...

News: Pension fund returns poll best results for four years.(Brief Article)
January 12, 2004... UK pension funds last year produced their first positive set of investment returns for four years, according to figures from performance measurer The WM Company. UK equities returned 21.2%, with great interest shown in stocks that had...

News: MP calls for probe into lost savings.(member of parliament)(Brief Article)
January 12, 2004... The MP who has been working closely with the Pensions Action Group is to ask for a full scale inquiry to be established into the loss of retirement savings when companies become insolvent. Derek Wyatt, the Labour MP for Sittingbourne and...

News: Fallout from Parmalat crisis could hurt UK pension funds.(Parmalat Finanziaria S.p.A.)
January 12, 2004... The fallout from the crisis at Italian food group Parmalat could have serious implications for UK pension funds that hold Italian equities as well as bonds issued by the company itself. The company has appointed an administrator following...

News: Pimco to manage oe44m Shropshire mandate.(Pimco Europe, Shropshire County Council pension fund )(Brief Article)
January 12, 2004... The Shropshire County Council pension fund has appointed Pimco Europe to manage a GBP44m global bond mandate. This is the first time Pimco has been appointed by a council pension fund. The mandate will be benchmarked against the Lehman...

News: Arise, Sir Derek Higgs.(European Federation for Retirement Provision, British Coal superannuation scheme)(Brief Article)
January 12, 2004... Derek Higgs tops the list of individuals in the pensions and investment industry who have been named in the Queen's New Year's honours list. Higgs was responsible for changing the combined code of corporate governance aimed at making...

News: ITS appointed to insolvent companies.(Independent Trustee Services )(Brief Article)
January 12, 2004... Independent Trustee Services (ITS) has been appointed as an independent trustee to a number of insolvent companies, the most recent of which is Ballast plc. Ballast Needham is the world's seventh largest construction firm and pulled out of...

News: oe20,000 payment made under Beckmann ruling.
January 12, 2004... An outsourcing company has paid GBP20,000 to enhance a former employee's pension in one of the first cases resulting from the Beckmann ruling, which determined that pensions are partly protected when employees' jobs are transferred to other...

News: Survey finds employees will pay more to keep DB schemes.(defined benefit)(Brief Article)
January 12, 2004... Employees are willing to pay more for defined benefit (DB) schemes in the future, according to a recent online survey. Research by Mellon Financial Corporation's Human Resources & Investor Solutions (HR&IS) group found 73% of respondents...

News: Gov't not listening to us, say pension lawyers.(Association of Pension Lawyers)(Brief Article)
January 12, 2004... Pension lawyers have criticised the government for not listening to their comments about draft pension legislation. Tim Cox, chairman of the Association of Pension Lawyers (APL), said: "We have had some difficulty in getting Department for...

News: Market improvement cut scheme deficits by half in 2003.(Brief Article)
January 12, 2004... Pension schemes deficits of FTSE 100 firms were cut by half during 2003 following improved market conditions, according to consulting firm Hewitt Bacon & Woodrow. The total pension deficit of GBP100bn for FTSE 100 firms in 2003 is now...

News: Dollar crash exposes pension vulnerability.(Brief Article)
January 12, 2004... The steep fall of the US dollar has highlighted pension fund exposure to foreign currencies. Barclays Global Investor (BGI), said that in 2003 the American stock market index, the S&P 500, rose by 28.7%, but sterling investors in the S&P...

News: Footsie's bull run continues in 2004.(FTSE Eurotop 300 Index )
January 12, 2004... The positive upturn in UK pension fund investment during last year passed over into 2004 with the Footsie notching up its 11th consecutive session of gains last week. The market would have beaten its May 1997 record of 11 straight gains...

News: Russell acquires solid private equity brand with Pantheon.(Russell Investment Group)(Brief Article)
January 12, 2004... Russell Investment Group has bought itself a brand with a proven long-term track record in the private equity arena through the acquisition of Pantheon. A spokeswoman for Russell confirmed the strategic fit between Russell's approach as a...

News: Pensions Bill - Bill could thwart trustees' wind-up powers.
January 12, 2004... Trustees could be stripped of the power to wind-up pension schemes without employer consent in the upcoming Pensions Bill as part of a shake-up of trustee stewardship, commentators warned last week. It is thought that the bill, expected in...

News: Pensions Bill - Money purchase schemes look set to escape PPF levy.(Pensions Protection Fund)(Brief Article)
January 12, 2004... The Pensions Bill is expected to exclude money purchase schemes from paying the levy to the Pensions Protection Fund (PPF), a source close to the process said. "We're pretty certain we've got it," he said of the effort to lobby the...

News: Pensions Bill - Treasury to push for training for 'amateurish' trustees.(Brief Article)
January 12, 2004... The Treasury is understood to have branded trustees as amateurs and is pushing for compulsory trustee training in the Pensions Bill. An over-riding idea in the Treasury is that trustees are "amateurish", said a Whitehall source, who did not...

News: Finance directors predict funds will improve in 2004.(Brief Article)
January 12, 2004... Some of the UK's top finance directors are confident that the health of pension funds will improve by the end of 2004. Research by life insurer Prudential found that 65% of finance directors of some of the largest companies in the UK...

News: Aegon expands into IFA field with purchase of Aurora.(independent financial advice, Aurora Financial Group )(Brief Article)
January 12, 2004... Aegon UK, the life assurer on a buying spree in the independent financial advice (IFA) sector, has purchased the advisory business of Aurora Financial Group for an undisclosed sum. Aegon purchased a minority stake of 9% in Aurora in January...

News: Left Field - Let's get radical.
January 12, 2004... The government's long awaited Pensions Bill is delayed yet again. Cynics are saying that its non-appearance is due to the government being forced to cut down the scope of the bill that it will now bring forward in February. It would be nice to...

News: Laverick wants real simplification.(David Laverick)
January 12, 2004... The pensions ombudsman said he is concerned that the pensions industry will never see significant regulatory simplification despite huge demands and numerous consultations. David Laverick, the ombudsman, said: "I confess to a slight worry...

News: Finance workers can't get no job satisfaction.(Brief Article)
January 12, 2004... Over half of all professionals working in finance are looking to quit their jobs, a survey indicates. The finding means that workers in the finance sector are the least satisfied group in the country, according to the higher education...

News: Ombudsman Watch.(Church of England advertising for a chief executive officer)
January 12, 2004... WRONG AGAIN Last month I wrote about the introduction of the Employment Equality (Religion or Belief) Regulations 2003 ("the religion regs"). I said they would have little or no impact on the world of pensions. I was wrong. The Church of...

Spotlight: Prospects for 2004.(pension funds planning)
January 12, 2004... The current debate over how best to reduce pension fund deficits has led to a greater acceptance of different investment strategies and 2004 is being tipped as the year for alternative asset classes. Schroder Investment Management suggests...

Governance Watch: FTSE 100 firms keeping shareholders sweet.(Brief Article)
January 12, 2004... Manifest's voting season review of FTSE 100 company meetings between 1 August 2002 and 31 July 2003 revealed that over a quarter of the FTSE 100 have paid dividends, despite the full amount of the dividend being paid not being covered by...

Opinion: Leader - Taking the cake away from the fat cats.(about a book by Don Young and Pat Scott)(Book Review)
January 12, 2004... Anyone looking for some provocative new year reading could do worse than to pick up a copy of Having their cake... how the City and big bosses are consuming UK business, a new book from Don Young and Pat Scott. In a nutshell, the book's...

Opinion: Personal View - Looking at pensions under the microscope.
January 12, 2004... The consultation on pensions simplification goes on and we hope that it won't fall at the last hurdle. What a shame so many opportunities have been missed in drafting the proposals. Have we already forgotten the Christmas season? Let's...

Opinion: Inside View - Infrastructure investments offer unique appeal.
January 12, 2004... At a time when pension funds and other long-term investors are looking for new alternatives, the need for private investment in infrastructure is growing. This is producing a happy marriage of available capital with investment opportunity and...

People on the Move: Axa continues shake-up at the top.(AXA Investment Managers appointed Simon Ellis, Paul Griffiths)(Brief Article)
January 12, 2004... Axa Investment Managers is continuing its management restructure with a series of internal and external appointments. Simon Ellis has been recruited from Henderson Global Investors as head of retail in place of Julia Choudhury who has been...

People on the Move: Douse heads up products at Schroders.(Susan Douse joined Schroder Investment Management Ltd.)(Brief Article)
January 12, 2004... Susan Douse is Schroder Investment Management's new global head of product management and consultant relationships. She joins in March from Watson Wyatt where, as partner, she was head of its global investment consulting team. Her main...

People on the Move: Dicken thinks small at Threadneedle.(Philip Dicken joined Threadneedle Asset Management)(Brief Article)
January 12, 2004... Philip Dicken is to join Threadneedle Asset Management's European equity team focusing on the smaller companies sector. He joins from Active Value Advisors where he was a European analyst for the last five years before which he worked for...

People on the Move: Lubran takes sales role at Mellon.(Jonathan Lubran, Mellon Global Investments)(Brief Article)
January 12, 2004... Jonathan Lubran has joined Mellon Global Investments as director of UK institutional sales. His main responsibility will be to develop business relationships with pension funds, corporate clients and government organisations. He will...

People on the Move: HBW appointments hit the nail on the head.(Hewitt Bacon & Woodrow, Mike Hammer, Steve Humphrys)(Brief Article)
January 12, 2004... Mike Hammer and Steve Humphrys have joined Hewitt Bacon & Woodrow (HBW) to bolster its pensions team in London. Hammer specialises in advising clients on several topics including benefit design and managing pension risk and will take over...

News Just In... : NHS members face AVC admin charges.(National Health Service, additional voluntary contributions )
January 12, 2004... Hundreds of NHS pension scheme members started the new year facing administration charges for their Equitable Life additional voluntary contributions (AVC) savings. The charge was scrapped in 1998 but is to be re-introduced from the...

News Just In... : More bonus cuts predicted.(Brief Article)
January 12, 2004... Most life offices will make further cuts to terminal bonuses on with-profit policies this year, although the size will be less significant than last year. This is the prediction of David Carrington, sales and marketing director at...

News Just In... : KSAM introduces new cash management service.(King & Shaxson Asset Management )(Brief Article)
January 12, 2004... King & Shaxson Asset Management (KSAM), is to introduce a cash management service for pension funds, following its acquisition of the UK investment arm of Swiss Life, in December. Initially KSAM will refer clients to the existing cash...

News: Members lose out by switching to S2P.(Brief Article)
January 19, 2004... Occupational pension scheme members could lose out on valuable income when they contract back into the state second pension due to a change in the way the benefits are to be calculated by the Inland Revenue. PW has learnt that the...

News: Enfield pushes for greater returns with performance-related fees.(Brief Article)
January 19, 2004... The GBP320m London Borough of Enfield is introducing performance-related fees for its fund managers in a bid to improve investment returns. This is the first time the council has looked at performance-related fees. The council said it...

News: Standard Life's Lumsden hits DB jackpot.(Brief Article)
January 19, 2004... Iain Lumsden, the chief executive of Standard Life who quit last week amid the furore of the insurer's likely u-turn over demutualisation, will enjoy at least an extra GBP100,000 a year in his final salary pension, in return for only two years...

News: oe10.5m Eleco scheme takes action to push up funding level.
January 19, 2004... A Hertfordshire-based engineering and construction supplier firm is entering a consultation exercise to increase employee contributions to help push up its funding level. The GBP10.5m Eleco pension fund said it is only 85% funded and will...

News: Teachers union threatens strike.(Brief Article)
January 19, 2004... Staff at Britain's second biggest teaching union threatened their bosses with strike action after it was proposed to close the final salary scheme to new joiners. Last-minute talks were believed to have staved off a walk-out at the...

News: Long-term mandate competition highlights.(Brief Article)
January 19, 2004... This week's issue of Pensions Week contains a detailed report on the long- term mandate competition, run last year by Hewitt Bacon & Woodrow (HBW) and the Universities Superannuation Scheme (USS), which was won by Henderson Global Investors....

News: MNPA to provide pension services to Morgan Crucible.(Brief Article)
January 19, 2004... The Morgan Crucible scheme has appointed third party administrator MNPA to provide pension services. MNPA will provide administration, accounting and pensioner payroll services to the fund, which currently has 6,400 members. An...

News: Stock market recovery does little to lessen FRS17 pension deficits.
January 19, 2004... The stock market recovery has done little to dent deficits under the FRS17 accounting formula in most UK pension schemes, it was said last week. The recovery in equities over the past year has been largely cancelled out by increases in...

News: Pilkington closes in-house fund management operation.(Brief Article)
January 19, 2004... Pilkington Superannuation Scheme announced last week that it has closed its in-house fund management operation partly as a result of setting a scheme- specific benchmark. The benchmark left the GBP900m managed internally with a 40% plus...

News: Mercer to make more job cuts.(Brief Article)
January 19, 2004... Mercer Human Resource Consulting is to axe up to 135 staff on top of 60 job cuts made last year (PW 02.09.03). The firm said approximately 100 positions have been identified for potential redundancy at its pensions administration unit in...

News: Jupiter Asset Management clings to Avon mandate.(Avon pension fund)(Brief Article)
January 19, 2004... The Avon pension fund, administered by Bath and North-East Somerset Council, has decided to retain Jupiter Asset Management until next year following a review prompted by underperformance. The investment committee reviewed the fund manager...

News: Lost Savings - Smith refuses MPs' calls for lost savings inquiry.
January 19, 2004... There will not be a public inquiry into why workers at schemes such as Allied Steel and Wire (ASW) have lost their pension savings, the secretary of state for work and pensions, Andrew Smith, has said. MPs pushed Smith for an inquiry to be...

News: Lost Savings - Workers will have alternative to PPF, hints Smith.(Brief Article)
January 19, 2004... Andrew Smith MP, the secretary of state for work and pensions, appeared to indicate that he will take action to compensate workers that have lost their pension savings and who fall outside the scope of the Pension Protection Fund (PPF). A...

News: Standard Life hikes up cost of with-profits.
January 19, 2004... Standard Life with-profit top-up pensions lost a "mutuality benefit" last week, making the products more expensive. Following the troubled life office's talks with the Financial Services Authority about its financial strength, the company...

News: Transsexuals fight British benefit law in Court of Appeal.(Brief Article)
January 19, 2004... The European Court of Justice (ECJ) has said it is up to member states to decide what legal recognition transsexuals should be given in respect of gender change following proceedings brought forward by a member of the NHS pension scheme. ...

News: Skandia tries to break into section 32 pension contract market.(Brief Article)
January 19, 2004... Skandia, the UK arm of Sweden's Skandia Insurance Company, is hoping for a slice of the GBP2bn market created last year by single premiums to section 32 pension contracts. The company is to launch its own section 32 policy in April. A...

News: Mothercare teams up with Mercer for benefit schemes.(Brief Article)
January 19, 2004... Mercer Investment Consulting has been appointed to provide investment consulting services to Mothercare's two defined benefit schemes. The combined fund size is approximately GBP115m. Steven Herbert acts as the lead investment...

News: With-profits funds give a good show in 2003.
January 19, 2004... Norwich Union last week said its with-profits fund performed well in 2003, yielding a return of 11.5% before tax, but the life insurance office said it still needed to lower payouts on maturing policies. Norwich Union also said that some...

News: Gillette punished for shaving benefits.(Brief Article)
January 19, 2004... Trustees of the Gillette UK pension scheme have agreed to pay GBP2,000 to a scheme member following maladministration. The member - Mr Peers - took the case to the pensions ombudsman after being misquoted for early retirement benefits. ...

News: NPC calls for increase in basic state pension.(National Pensioners Convention)(Brief Article)
January 19, 2004... The National Pensioners Convention (NPC) has called for a 36% increase in the basic state pension and the scrapping of relief on private pensions. The GBP14bn saving can be used to pay for the GBP8bn increase to state pensions, said the NPC....

News: Benchmark - High hopes for 2004.
January 19, 2004... It is that time of year again for crystal ball gazing and letting you know my hopes and fears for the year ahead. Before that though, my prize for the consultants that produced the best (succinct) paper for 2003. We receive so many from so many...

News: Lawyers attack Opra transfer changes.
January 19, 2004... An amendment to how transfer values are calculated when a member leaves a scheme has left the process in a "state of flux". The pensions regulator changed rules last year to allow employers to withhold quotations to protect fund security...

News: Cap could hit offshore pensions.(GBP1.4m pension cap )(Brief Article)
January 19, 2004... The government's proposed GBP1.4m pension cap could hit non-UK nationals who pay into overseas or offshore pension plans, according to actuaries at Mercer Human Resource Consulting. Those employees who pay into these plans with...

News: Ombudsman Watch.
January 19, 2004... GO-STOP! There is a Chancellor of the Exchequer best remembered, disapprovingly, by economists for his stop-go policies. Similarly, financial services commentators do not approve of the 'go-stop' policies adopted by many financial services...

News: Employers shown Tupe loophole.
January 19, 2004... Employers of people from transferred business operations through mergers or outsourcing might have to never make staff redundant if they are to avoid paying for enhanced early retirement pensions, lawyers say. It could be the only way to...

News: Half of pensioners getting the credit they deserve.(Brief Article)
January 19, 2004... Just over half of the pensioners eligible for the pension credit are claiming it, according to the latest official figures. Malcolm Wicks, the pensions secretary, said an estimated 4.9m pensioners are eligible for the pension credit this...

News: Residential property is now fair game.(Brief Article)
January 19, 2004... Company pension funds can invest in residential property now rather than wait for the Inland Revenue to give the go-ahead through changes to the tax regime, said a financial advice firm last week. Central Financial Planning, an independent...

Letters: Simple simplification solution.
January 19, 2004... Your recent editorial (PW 15.12.03) on the subject of tax simplification tells us we now have two choices: 'shut up or put up'. In the same edition, Stewart Ritchie concludes that "the price the few will pay for the benefit of the great...

Letters: Mirror meandering.
January 19, 2004... It was interesting to read the article you wrote about Mr Keighley's successful complaint against Trinity Mirror over his misquoted retirement benefits. I would just like to add that it was myself as the GPMU (Graphical Paper & Media...

News: Alternatives still hot despite stock rise.
January 19, 2004... The rise in stock market performance will not diminish the search by pension funds for alternative investments, such as hedge funds and private equity, according to fund managers and consultants. Andrew Kirton, worldwide partner and UK head...

News: Good governance pays off for US large-cap funds.
January 19, 2004... Managers of large-cap unit trust-type funds in America - mutual funds - tend to overweight their portfolios with companies with above-average corporate governance. This allows them to outperform the average fund holding poorly governed...

News: Goldman Sachs unveils 53 mandate wins in 2003.(Brief Article)
January 19, 2004... Goldman Sachs Asset Management (GSAM) Europe won 53 mandates in 2003, the firm said last week. Specialist mandates were won across a wide range of asset classes, including fixed currency, global tactical asset allocation and private...

News: Events - Strategy conference.(Local Government Pensions Committee )(Brief Article)
January 19, 2004... The Local Government Pensions Committee is to hold a funding strategy statement conference in London on Wednesday this week (21). The conference is in response to the requirement for local authority pension funds in England and Wales to...

News: Events - Tax examination.
January 19, 2004... A critical examination of the new tax regime is offered by HSBC Actuaries and Consultants in February. Morning seminars will be held in Birmingham (5), Manchester (6), Edinburgh (10) and London (13). For more details telephone Steve Robinson on...

News: Events - Alternative investments.(Brief Article)
January 19, 2004... Private equity, hedge funds and derivatives will be put under the microscope at an Alternative Investment Summit on 22 and 23 March in London. Speakers will include Urs Alder, senior manager at Man Investments, and Paddy Dowdall, investment...

News: Events - Final salary course.(Brief Article)
January 19, 2004... The Trustee Corporation is to host a basic course about final salary pensions on 29 January and an advanced course about final salary investment on 12 February. For more information contact Robert Gravill on 0870 839 3479 or e- mail...

News: Events - Simplification seminars.(Brief Article)
January 19, 2004... Aon Consulting is to organise a series of pensions tax simplification seminars for clients in January. The breakfast or afternoon seminars will run in London (14), Farnborough (15), Glasgow (21), Edinburgh (22), Bristol (28), Birmingham...

News: Funds missed emerging markets.
January 19, 2004... Institutional investors appear willing to take greater calculated risks to boost returns, according to figures by performance measurer The WM Company. However, they still shy away from emerging markets, which produced the best returns last...

News: China is the star performer of 2003.(Brief Article)
January 19, 2004... Last year saw stellar performances from investment trusts with large weightings in China and Hong Kong - but managers are now sounding caution over short-term valuations. Michael Watt, manager of Henderson Far East Income Investment Trust...

News: DC Link take over MLIM's defined contribution funds.(Brief Article)
January 19, 2004... Merrill Lynch Investment Managers (MLIM) has appointed DC Link, part of the Alexander Forbes Group, as third-party administrator to MLIM's defined contribution (DC) pension scheme service. After all of MLIM's clients have been moved across,...

News: Unit trust surplus may see mergers.(Brief Article)
January 19, 2004... An oversupply of unit trusts and other funds means that some of the largest fund managers in the UK are expecting to see a change in the industry's infrastructure. This will be achieved through increased merger and acquisition activity and...

News: Money laundering lands BoS oe1.25m fine.(Bank of Scotland)
January 19, 2004... The Financial Services Authority (FSA) sent out a stern warning to financial services companies after fining the Bank of Scotland GBP1,250,000 for money laundering rule breaches last week. The regulator fined the bank for failing to keep...

Spotlight: Debate heats up on pension issues.
January 19, 2004... AXA Corporate Benefit Solutions and FT Business recently hosted a lunchtime discussion on current pensions issues for a selection of leading pensions and benefits advisers. For anyone interested in seeing the results of this pensions focus...

Governance Watch: What allows shares to be left in safekeeping?(Brief Article)
January 19, 2004... The Companies (Acquisition of own shares) (Treasury Shares) Regulations 2003 (SI 2003/1116), which amend the Companies Act 1985, came into force in December 2003. The regulations relax the requirement that a company purchasing its own shares...

Opinion: Leader - Time for an inquiry into collapsed schemes.(Brief Article)
January 19, 2004... There now seems to be a rule that a public inquiry is only called once someone has died, generally in a blaze of tabloid headlines. We've had the Hutton inquiry and await its final report and, rightly, there is to be an inquiry to find out how...

Opinion: Personal View - Don't look back in anger; the future prospects are bright.
January 19, 2004... With the onset of each January comes the inevitable, but helpful, appraisal of the previous 12 months and of prospects for the year to come. It seems hard to believe that this time last year the UK equity market was concerned about the impact...

Opinion: Inside View - Simplification will make life complicated for the rich.
January 19, 2004... It's ironic that the Revenue's ground-breaking proposals for simplicity, which have received overwhelming support, have created enormous complexity for senior executives and directors. As each day goes by, and people pore over the detail, more...

Special Report: Long-term Investing - Foreword.
January 19, 2004... When Hewitt Bacon & Woodrow and the Universities Superannuation Scheme launched the competition in March 2003, we had little idea what response it would get. This report - which brings together the best ideas from all 88 entries - is clear...