Pensions Week articles from July 2002

Pensions Week archives from July 2002

News: Alan's unradical Revolution.(Alan Pickering)
July 15, 2002... Alan Pickering's pensions revolution made its first inroad into the jungle of pensions legislation last week and became an instant controversy. The simplification report made radical and ruthless proposals to cut pensions for widows and...

News: News: Sandler Review - Life, but not as we know it.(Ron Sandler Review)
July 15, 2002... Ron Sandler is happy to let insurers go broke if the proposals in his review of long-term savings products ever bite. Those who don't emerge from the primeval landscape he plans will die of simple mediocrity, he believes. "Our...

News: News: Sandler Review - Sighs all round as with-profits continues.(Brief Article)
July 15, 2002... With-profit funds were given a lifeline by the Sandler review last week when he recommended their survival - but with radical changes. It was feared Sandler would kill off with-profits. Instead, Sandler recommended that with-profits would...

News: News: Sandler Review - Sandler puts faith in leveling qualities of IPA.(Brief Article)
July 15, 2002... Memories of the row between the Treasury and Department for Work and Pensions resurfaced in the Sandler review, with the surprise re-appearance of the individual pensions account (IPA). The IPA - which was created unexpectedly by the...

News: Simplification Review - I'm looking at the big picture with this, claims Pickering.(Alan Pickering, chairperson of pensions simplication review)
July 15, 2002... The chairman of the pensions simplification review, Alan Pickering, happily admitted his report was biased towards defined benefit (DB) schemes after criticism that he had neglected the workings of the encroaching defined contribution (DC)...

News: Simplification Review - Government action by autumn.(Brief Article)
July 15, 2002... The government gave a lukewarm response to some of the proposals contained in the Pickering report last week. In the House of Commons on Thursday, the secretary of state for work and pensions, Andrew Smith, disagreed with the recommendation...

News: Simplification Review - Reaction.(Brief Article)
July 15, 2002... This report is an important step forward, but is only one piece in the pensions jigsaw. Whatever the outcome of the simplification review, if the pensions crisis is to be averted, more money is needed in the savings system. - Joanne...

News: Rothschild takes on heavy metal job.(Rothschild Asset Management)(Brief Article)
July 15, 2002... Rothschild Asset Management has beaten off competition from Deutsche Asset Management to land a GBP20m UK equity mandate with the pension fund of one of the world's largest nickel producing companies. The GBP60m Inco Europe Pension Plan...

News: Metals company melts tension over 20-year pensions drought.(Brief Article)
July 15, 2002... A metals company has restarted contributions to its pension scheme after a contribution holiday of nearly 20 years. The measure is seen as a victory by pensioners who have been pushing to end the holiday. They are particularly euphoric...

News: It really is good to talk, says Opas.(Pension Advisory Board )(Brief Article)
July 15, 2002... Pension schemes must improve their administration and communication standards if they are to avoid disputes from scheme members, the Pensions Advisory Board (Opas) warned. Malcolm McLean, chief executive of Opas, said communication and...

News: Marconi lawyer joins MHRC.(Stephen Hart)(Brief Article)
July 15, 2002... Mercer Human Resource Consulting (MHRC) has appointed the former legal manager (pensions) of Marconi as a senior legal consultant and European principal. Stephen Hart will be based in MHRC's Birmingham office and will provide advice to...

News: Part-time firemen spark tribunal.(part-time firefighters denied access to Firefighers Pension Scheme)(Brief Article)
July 15, 2002... More than 16,000 part-time firefighters denied access to the Firefighters' Pension Scheme are due to have their case resolved by an employment tribunal this month. Firefighters lodged a case with the employment tribunal when the part-time...

News: Poor saving means longer working life looms.(Brief Article)
July 15, 2002... A third of the population will have to work into their 70s unless the government changes the state retirement age, a fund manager claimed. AXA Sun Life has called on the government to raise the state retirement age from 65 to 70 after it...

News: BFG trustees face charges over DB change.(Big Food Group lawsuit)(Brief Article)
July 15, 2002... The law suit against the Big Food Group (BFG) over the closure of its final salary scheme would be widened to include the scheme trustees. Law firm Salans Hertzfeld & Heilbronn (Salans), which is acting for employees of BFG - formerly known...

News: DB holds no fears for oe1bn Alstom scheme.(Brief Article)
July 15, 2002... As the Pickering review tried to offer a lifeline for defined benefit schemes last week, a billion pound pension fund has saved its DB scheme through higher contribution rates. The GBP1.1bn Alstom UK fund announced that its new pension...

News: Funds fail to put money where mouth is on SRI.(socially responsible investments)
July 15, 2002... Poor practice among pension funds to socially responsible investment (SRI) is the norm, concludes a survey released today. Despite tougher SRI legislation over the last two years, the survey of pension funds - accounting for 20% of UK pension...

News: Amicus phone fears.(T-Mobile and defined benefit plans)(Brief Article)
July 15, 2002... Trade union Amicus has launched a scathing attack on T-Mobile for plans to transfer thousands of workers out of its main defined benefit (DB) scheme to a different company that does not have DB provision. Amicus general secretary Roger...

News: Sting in the tale - Interesting times.
July 15, 2002... In the end I think the long-awaited Pickering report was a bit over-egged. I've read it, re-read it and re-read it a number of times since I got my copy yesterday and, truth told, there appears to be less to it than meets the eye. Indeed, if...

News: Official: Pru DB key for Hazell Carr.(Prudential )
July 15, 2002... The UK's largest life and pensions provider has announced its final salary business will be off-loaded to consultant and actuary Hazell Carr, as revealed by PW in May (PW 6.5.02). Prudential has formed a strategic alliance with Hazell Carr...

News: Banerji leaves F&C for public duties.(Arnab Banerji)(Brief Article)
July 15, 2002... The chairman of a pan-European fund management house has left his post to take up a role in government. Arnab Banerji has stepped down as chairman of investment policy at F&C Management to take up a role in public service. The government...

News: Jagger's in the spotlight with BECTU pension fund.(Simon Jagger & Associates)(Brief Article)
July 15, 2002... Actuary and consultant Simon Jagger & Associates has been appointed to provide pension services to the BECTU pension fund. Jagger will act as investment advisers to the GBP6m arts and entertainment union's pension fund. The services were...

News: Open up on illness, urges Laverick.(David Laverick calls for increased openness)(Brief Article)
July 15, 2002... The pensions ombudsman David Laverick has called for greater openness from trustees when dealing with scheme members, especially over ill-health. Laverick said too often trustees made decisions about ill-health without outlining the reasons...

News: NHS found guilty of indirect discrimination over buy backs.(National Health Service)
July 15, 2002... Part-time workers who previously worked full-time and cashed in their pension can buy back pension rights at the half price rate given to full-time workers, the ombudsman has decided. The decision represented a victory for a part-time NHS...

News: Ombudsman Watch.(pensions and divorce)
July 15, 2002... Pensions and divorce Through the mid-1990s, this was a big issue. It captured the attention of the broadsheets, the tabloids, the judges and parliament. As a result, we now enjoy more complicated pensions law on this subject. The legal...

News: Property - Yorkshire sky-high sale.(Yorkshire pension fund real estate sale)(Brief Article)
July 15, 2002... The GBP2.3m South Yorkshire pension fund has sold its holdings in a GBP7m property portfolio. The Bulgari store in Bond Street, London, was sold to a private investor for GBP7m in an off market transaction. The property has a 20-year...

News: Property - Schroder branch out.(Schroder Property Investment Management)
July 15, 2002... Schroder Property Investment Management has expanded its residential property unit trust (ResPUT) with the acquisition of a property portfolio from BPT for GBP70m. The acquisition takes the total assets under management to GBP115m and the...

News: Councils set to be guinea pigs for first wave of FRS17 hits.(Brief Article)
July 15, 2002... Council tax bills could still be hit next year by the introduction of new pensions accounting standard FRS17 despite the accounting regulator's decision to delay full implementation of the standard for corporates. Discussions are currently...

News: Threadneedle attracts high alpha converts.(new appointments at Threadneedle Investments)(Brief Article)
July 15, 2002... Threadneedle Investments poached new staff for its new equity department. The manager said it has developed a "high alpha" team which will work with the existing core alpha team for UK equities. It appointed Mark Holden from ABN Amro...

News: Easy does it for Euro investors while US plays hard ball with convertibles.(institutional investors in US are more likely to invest in sub investment grade convertible bonds)(Brief Article)
July 15, 2002... US institutional investors are almost twice as likely to invest in riskier sub investment grade convertible bonds than European investors, according to a survey from a leading researcher. Greenwich Associates survey of 145 institutions (91...

News: Chaplin stars in credit derivatives production.(Geoff Chaplin hired to oversee development of Reech Capital's credit derivatives functionality)(Brief Article)
July 15, 2002... Capital markets specialist Reech Capital is expanding its credit derivatives services to capitalise on growth in the $1,000bn credit derivatives market. Reech Capital has hired former Nomura and ABN AMRO credit derivatives expert Geoff...

News: Step-up the pace to keep the faith.(Institute of Actuaries aim to improve public image of actuaries)
July 15, 2002... Actuaries are not reacting quickly enough to instill public faith in the profession, following plunging annuity rates and the Equitable Life saga, according to actuarial bosses. Both Jeremy Goford, president of the Institute of Actuaries...

News: Barings collers private equity.(Baring Asset Management Inc., Coller Capital Ltd. launch private equity secondaries fund)(Brief Article)
July 15, 2002... Baring Asset Management has linked up with Coller Capital to launch its first private equity secondaries fund. The Baring-Coller fund will invest in private equity interests managed by Coller Capital. Barings said the venture came...

News Analysis: Compulsory Pensions - Learning from Hong Kong.(analysis of Hong Kong's compulsory mandatory provident fund scheme)
July 15, 2002... Could compulsory contributions to stakeholder be the answer to the undeniably lukewarm response to the government's pension plan for low and middle-income earners? A cursory look at the experience in Hong Kong would suggest a resounding...

Governance Watch: Once more unto the breach.(Brief Article)
July 15, 2002... The fraud at WorldCom has again put corporate America under the spotlight and put the jitters among investors. Institutional investors that were not paying close attention to corporate governance while the bull market continued are beginning to...

Opinion: Leader - Government tinkers as pensions burn.(UK government should implement extra pension incentives for employees, employers)
July 15, 2002... After travelling in hope for many months, last week's Sandler and Pickering simplification reviews fell short of what many pensions experts reckoned was needed to cure chronic underfunding for income in retirement. Come the autumn, the...

Opinion: Personal View - Speaking the language of 'yoof'.(pensions industry needs to motivate consumers, help them understand advantages of pensions)(Column)
July 15, 2002... The current debate around the state of the national funds is getting hotter and we now await news on how much of Alan Pickering's review of pension regulation out last week is enacted. The recent controversial call to government for an increase...

Opinion: Letter from Europe - The wind of change.(economic conditions in US, Europe, Japan)
July 15, 2002... The fickle winds that blow in the world's currency markets have been undergoing a change. Suddenly the euro is starting to gain ground again while the dollar is slipping, providing welcome relief to the European Central Bank. But we have been...

Opinion: Letters - Orange clarifies remuneration strategy.(Letter to the Editor)
July 15, 2002... An article was published in Pensions Week on the 10 June 2002 entitled 'Orange pensions set the right tone'. I would like to clarify a number of aspects of the article. In 2000, a review of the Orange Pension Scheme and employee profile...

Opinion: Letters - Don't shoot the messenger.(corporate culture is responsible for recent financial scandals, not accountants)(Brief Article)
July 15, 2002... Accountants have had a tough few months following the Enron and WorldCom fall out and the raging debates over new pensions accounting standard FRS17. The Merchant Navy Pension Fund will not be the last to ditch Andersen as its auditors if it...

Special Report: Building on a solid foundation.(training for pension scheme trustees)
July 15, 2002... Pension scheme trustees are often responsible for looking after millions of pounds of assets and safeguarding the retirement benefits of thousands of current and future pensioners. They operate in an incredibly complex regulatory environment....

Special Report: Pensions and divorce -- how to share.
July 15, 2002... The treatment of pension benefits on divorce has greatly changed over the past decade. This article explains the changes which have taken place and the impact of those changes on the trustees of occupational pension schemes. Prior to 1996,...

Route to the top: Pensions speed king motors on.(Ken Ayers, chairman of National Association of Pensions Funds)(Biography)
July 15, 2002... Ken Ayers has been working in pensions and investments since he began his career in 1955. Now chairman of the National Association of Pensions Funds (NAPF) investment council and at retirement age himself, Ayers explains that he has no...

People on the move: Wright flies off to Gartmore.(Gartmore hires Geraldine Wright and Karl Bergqwist)(Brief Article)
July 15, 2002... Fund manager Gartmore has appointed Geraldine Wright as account director, institutional client services. She joins from Schroder Investment Management where she was most recently a director of segregated account management, having...

People on the move: Linklaters in the Knowles.(hires Rosalind Knowles and Richard Kandler)(Brief Article)
July 15, 2002... Law firm Linklaters has appointed two new pensions consultants to add to the five partners and 25 lawyers in the team. Rosalind Knowles joins with almost 10 years experience in pensions. She has been practising pensions law since 1993...

People on the move: Hamilton promoted at SLAS.(Colin Hamilton)(Scottish Life Administration Services)(Brief Article)
July 15, 2002... Scottish Life Administration Services has appointed Colin Hamilton as clients operations manager for its third party administration business in Edinburgh. He joined Scottish Life in 1988 with 14 years experience in both the retail and...

People on the move: Gissings sets sights high.(Jeff Highfield)(Brief Article)
July 15, 2002... Employee benefits firm Gissings has appointed Jeff Highfield as practice director, client accounting. He will take on responsibility for the provision of accounting services to Gissings' client pension schemes including the preparation of...

People on the move: Manchester law team united.(Stephen Scholefield)(Pippa Read)(Brief Article)
July 15, 2002... Law firm Pinsent Curtis Biddle has strengthened its Manchester office with two new hires. Stephen Scholefield, who was previously with Addleshaws, joins as an associate. Pippa Read also joins from Addleshaws where she was an assistant...

People on the move: Chapman walks to State Street.(Paul Chapaman)(Brief Article)
July 15, 2002... State Street Corporation has appointed Paul Chapman as head of relationship management and strategic marketing for State Street UK. He joins from the Pershing division of Credit Suisse First Boston where he was director, international...

People on the move: My first job - Ann Cook, pensions solicitor, Eversheds.(Brief Article)(Interview)
July 15, 2002... What was your first job? Kitchen-hand and girl of all work at a Christian conference centre. What made you stand out over other applicants? I knew the cook. Did it offer a pension? No, I don't think anyone could possibly...

Whistle Blower: Calculus Man to the rescue.(Chris Daykin, Government's Actuary's Department aid in review of pension figures at Office of National Statistics)(Brief Article)
July 15, 2002... Regular readers have been aware of the continuing problems with the Office of National Statistics (ONS) with the figures for pension savings. The ONS admitted that two sets of pension figures have gone horribly wrong and are re-examining...

Whistle Blower: Spot the dancing queen.
July 15, 2002... Wb and his spies obviously had too much of a good time at the PW Awards last month after getting the identity of the Award's dancing queen mixed up. The Wb bunker received a few missives from the sharp eyed among our readers last week -...

Whistle Blower: Thompson quells media hysteria over pensions.(Peter Thompson, head of National Association of Pension Funds)(Brief Article)
July 15, 2002... Last week was a busy one for the pensions industry as stories flew round the national media of pensions crises, pensions rip-offs and threats of widespread pensioner poverty. However, the week started with a pensions shock of its own when...

Market Monitor: UK in focus (2.7.02 to 9.7.02).(data for FTSE 100, FTSE 250 stock indexes)(Brief Article)
July 15, 2002... The FTSE 100 fell to its lowest levels since last September and there appeared to be virtually no support for the UK index as it joined US and European markets in a global slide. The gloom carried on into the start of the week and left...

News Just In...: US scandals drop pooled funds in deep water.(balanced pooled funds produce negative results due to fallout from accounting scandals)
July 15, 2002... Balanced pooled fund managers have lost 6.57% in the 12 months to June after dodgy accounting practices in some large US companies sent stockmarkets reeling. Despite a gradual recovery in 1Q (PW 29.4.02), exclusive research by PW revealed...

News Just In...: Rainy days make UK top dog in pensions saving.(British consider pensions most important method of saving)(Brief Article)
July 15, 2002... Britons view pensions as the most important method of saving according to a survey into European savings attitudes released last week Although other Europeans are cottoning on to the concept of private pension provision, the British are...

News: NAPF blew it say small schemes.(National Association of Pension Funds)
July 22, 2002... Smaller pension schemes blamed the lack of "real radicalism" in the Pickering review on the National Association of Pension Funds' (NAPF) last week and said it had done little for them. The NAPF's block vote voting structure and...

News: Equities are the albatross around funds' necks, warn experts.
July 22, 2002... Investors must prepare for further slides in equity markets according to financial experts as balanced pooled funds suffered an 8% loss in the second quarter. Last week the latest Russell/Mellon CAPS figures showed median balanced pooled...

News: NAPF sees red on web costs.(National Association of Pension Funds operating loss)(Brief Article)
July 22, 2002... The National Association of Pension Funds (NAPF) made an operating loss of GBP83,217 in 2001 as the costs of developing its website and restructuring the organisation wiped out underlying profitability. The latest NAPF audited accounts show...

News: Pickering's widows could save industry billions.(Brief Article)
July 22, 2002... The pensions industry could save up to GBP8bn if schemes opt not to provide a survivors' pension under proposals put forward in Alan Pickering's simplification review this month. Figures from the Government Actuary's Department (GAD) show...

News: DC fund values halved in three years.(defined contribution pensions)(Brief Article)
July 22, 2002... Criticism that Alan Pickering had focused too much on saving defined benefit pension schemes was put in fresh perspective last week when it was revealed that defined contribution (DC) pensions have plummeted in value by 50% in the last three...

News: Council employees pay price for strike action.(Brief Article)
July 22, 2002... Council employees will have to pay an additional 16% of pay to make up for lost pension benefits through last week's strike action. Employees who participated in the union strike over pay disputes will not be entitled to a pensions payment...

News: SBG backed by T&G in fight for fair pension.(Scottish Bus Group, Transport and General Workers' Union)(Brief Article)
July 22, 2002... Payments to pensioners in the Scottish Bus Group (SBG) case will only be viewed as interim payments and the scheme could be forced to make extra payouts, a union has warned. The T&G stated that while it welcomed payments from SBG, it will...

News: Pensions partner quits to focus on work outside the firm.(Robin Ellison of Eversheds)(Brief Article)
July 22, 2002... Robin Ellison, the former partner and national head of pensions at law firm Eversheds, has left the law firm. Ellison joined Eversheds in 1997 and recently left the practice to embark on pensions work outside the firm. Ellison was not...

Simplification: NAPF pins hopes on Revenue radicals.(National Association of Pension Funds)
July 22, 2002... The National Association of Pension Funds (NAPF) appears set to endorse the Pickering report into pensions simplification. A survey of the NAPF's benefits council found that almost every member PW was able to contact last week would...

Simplification: LPI likely to remain safe from the chop, says Lewin.(limited price indexation)(Brief Article)
July 22, 2002... Large pension schemes would not necessarily axe limited price indexation (LPI) if Alan Pickering's proposal to allow employers to do so were adopted. LPI, which prevents pensions from falling behind the rate of inflation, was introduced by...

Simplification: Pension leaders offer food for thought.(Letter to the Editor)
July 22, 2002... -Terry Faulkner, Rexam benefits manager, chairman of NAPF benefits council [Pickering] has got it just about right for the debate we're about to have. One thinks he could have gone a little bit futher, particularly around concurrency...

Simplification: Pickering avoids naming and shaming.(Alan Pickering)(Brief Article)
July 22, 2002... Alan Pickering said he deliberately avoided blaming anyone for the current "pensions crisis". His report refrained from pointing fingers at governments, life insurers or corporations for any of the industy's ills, such as mis-selling or...

Simplification: Consumer confidence lacking in private pensions, says ACCA.(Brief Article)
July 22, 2002... Accountants have accused Alan Pickering of failing to address consumer confidence in his simplification review. The Association of Chartered Certified Accountants (ACCA) said it had failed to come up with a blueprint which would restore...

Simplification: This bill is alive with the sound of music.
July 22, 2002... Alan Pickering was amazed at the hostile response to his simplification review from the trade unions, believing they would welcome his recommendations to secure defined benefit pensions. Pickering rejected trade union criticism that his...

Simplification: Instant vesting receives frosty reception.(Brief Article)
July 22, 2002... Allowing employees to have immediate pension rights rather than making them wait two years after joining a scheme - the so-called vesting period - could result in more complexity and higher costs for defined benefit (DB) administration. ...

Simplification: Wind-up victims must have last laugh.(pension legislation)(Brief Article)
July 22, 2002... Legislation needs tightening to protect workers from losing their entire defined benefit pension scheme savings. Dr Ros Altmann, a pensions consultant to Downing Street, criticised Alan Pickering's report for failing to close a gap in...

Simplification: Small businesses take steps to raise retirement age.(Brief Article)
July 22, 2002... Small businesses' representatives have urged the government to adopt their plan for a sustainable second pension. The Federation of Small Businesses (FSB) said the existing second tier state pension needed to be revamped to fill the void...

Simplification: Revenue set to turn clock back and treat pensions as savings not tax wheeze.(pension regulation)
July 22, 2002... Pressure is mounting on the Inland Revenue to deliver the final solution to the pensions crisis now that the Pickering and Sandler reviews are out of the way. Alan Pickering said that the Revenue will surprise many with its radical...

Simplification: Pickering joins the long list of pensions shake-ups.(Alan Pickering)
July 22, 2002... Alan Pickering's simplification initiative is the latest of over a dozen pensions reviews carried out in the UK in the last hundred years or so. The seemingly never-ending review process and resulting policies is exactly what many...

Simplification: Report unworkable and immoral, says Work Foundation.(Alan Pickering's pension simplification proposals )(Brief Article)
July 22, 2002... The government should reject Alan Pickering's `misguided' pension simplification proposals on moral and practical grounds, an industrial organisation has claimed. The Work Foundation - previously the Industrial Society - has urged the...

News: Maestro - Reasons to be cheerful.
July 22, 2002... There is so much gloom and despondency about in pensions at the moment that I set myself the task of identifying some reasons to be cheerful. (Well, I like a challenge!). There is a danger that we shall talk ourselves into a kind of pensions...

News: Asset collection up 50% despite trustee shortage.
July 22, 2002... Over GBP45m of fund assets have been collected for members by the pensions regulator through the appointment of scheme trustees. The Occupational Pensions Regulatory Authority (Opra) said there are still a large number of schemes operating...

News: EC to adopt soft touch on SRI.(European Commission, socially responsible investment policies)(Brief Article)
July 22, 2002... UK companies, in which a large number of pension funds invest, will not be forced by regulation to report on corporate social responsibility (CSR), following recommendations made by the European Commission last week. The European...

News: Medical insurance tops pensions in flex survey.(flexible benefits)(Brief Article)
July 22, 2002... More than 30% of flexible benefit packages offered by employers include pensions, according to a survey by consultant Watson Wyatt. Other benefits made available include dental care, life assurance, company cars, holidays and childcare. ...

News: FSA ignores actuarial advice.(Financial Services Authority)
July 22, 2002... The government actuary hit out at the financial regulators' plans to cut back the role of insurance company appointed actuaries in deciding annual bonuses and returns. In May, as part of its conclusions from the with-profits review, the...

News: Ombudsman Watch.
July 22, 2002... Deja vu Last week had a familiar ring about it. Shares were down two years in a row. The FTSE 100 index had fallen more than 40%. Public sector workers were on strike and the Socialist Worker was on sale in the City of London. ...

News: INVESCO surf the TRADESTARR.(INVESCO Asset Management, Trade Settlement Tracking and Relative Ranking System)(Brief Article)
July 22, 2002... INVESCO Asset Management has signed up to the first web-based application for analysing broker-dealer efficiency. The system, run by JPMorgan Investor Services and called Trade Settlement Tracking and Relative Ranking System (TRADESTARR),...

News: High Court clarifies sensitivity of added-years claim timings.(Brief Article)
July 22, 2002... Members of the local government pension scheme (LGPS) can successfully claim compensatory added years at any time after being made redundant, following a recent High Court ruling. A member of the Eastbourne Council pension fund took the...

News: US shunned as equities slide.(Brief Article)
July 22, 2002... Fund managers are switching out of US equities to emerging market and eurozone equities as markets slide, according to a fund manager survey published last week. The latest Merrill Lynch fund manager monthly survey - covering 279...