Pensions Week articles from June 2009

Pensions Week archives from June 2009

News: Lloyds Group faces union's DB ultimatum.
June 8, 2009... Byline: Tom Willetts A trade union is demanding that Lloyds Banking Group provides a written guarantee that its two defined benefit (DB) schemes will remain open for future accrual. The LTU union also insists that the bank, which is...

News: Doubts over DWP secretary.
June 8, 2009... Byline: Charlie Kirby Yvette Cooper's former Treasury role may pose questions as to whether she should be secretary of state for work and pensions, according to Theresa May. The opposition's secretary for work and pensions said that...

This week: Back to the drawing board.
June 8, 2009... Byline: David Rowley - Editor I think it is time to lay down our weapons, come out of the trenches, raise our hands and wave a white flag. If the BP final salary scheme can close then the war, at least for the private sector, is truly...

News: PAG strips in call for fairer FAS deal.
June 8, 2009... Byline: Charlie Kirby Pensioners protested in their underwear outside parliament at the "complete injustice" of their Financial Assistance Scheme (FAS) settlements. The demonstration, held by the Pensions Action Group (PAG), saw a...

News: Auto-enrolment rules criticised for overprescription.
June 8, 2009... Byline: Charlie Kirby Responses to the Department for Work and Pensions' (DWP) consultation on auto- enrolment regulations have questioned their practicality for smaller employers. Rachel Vahey, Aegon's head of pensions development,...

News: Rock-bottom rates lead to SSAS growth spurt.
June 8, 2009... Byline: David Rowley The credit crunch has led to a boom in the set-up of small self-administered schemes (SSASs) at small to medium-sized employers. The shortage of credit and its relative expense is encouraging small owner-run...

News: Pension tax break for high earners.
June 8, 2009... Byline: David Rowley Employees with income between GBP100,000 and GBP113,000 could be better off by increasing their pension contributions in the next tax year. Watson Wyatt says that such a move would be advantageous if it brings...

News in brief.
June 8, 2009... Stuart Imeson, director of the GBP7bn West Yorkshire Pension Fund, is to retire in October. He joined the fund in 1985 as head of investment and began his current role when the head of pensions retired in 1992. He plans to use his free...

News: Low cost longevity swaps lure FTSE 100.
June 8, 2009... Byline: Tom Willetts Competition among providers is forcing down the price of longevity swaps and has enticed six FTSE 100 companies to obtain quotations. According to a report by Lane Clark & Peacock (LCP), the market for transferring...

News: Membership drops among low earners.
June 8, 2009... Byline: Charlie Kirby Low wage earners are far less likely to belong to a company pension scheme than higher-paid employees, according to the Office for National Statistics (ONS). Only 21% of men and 32% of women earning less than...

News in brief.
June 8, 2009... Alexander Forbes International's pension administration software subsidiary, Chambers Townsend Consultancy, has been bought in a management buyout (MBO). Chambers will continue to be a significant supplier of software services to...

News: Big four share plans for best practice.
June 8, 2009... Byline: Tom Willetts A quartet of industry groups has published proposals to improve dialogue between institutional investors and companies. The plans have been drawn up by the National Association of Pension Funds (NAPF), the...

News: QE sees success, but issues will follow.
June 8, 2009... Byline: Charlie Kirby Quantitative easing (QE) is working, but schemes should be aware of the likely spike in inflation that will follow, according to Fidelity. Ian Fishwick, fixed income portfolio manager at Fidelity, said that after...

News in brief.
June 8, 2009... The GBP1.7bn Daily Mail and General Trust pension schemes have dropped Watson Wyatt as actuary in favour of Hewitt Associates. Hewitt's Richard Whitelam has been appointed scheme actuary to the main Harmsworth Pension Scheme, which has...

News: BT ranked top for responsible policy.
June 8, 2009... Byline: Tom Willetts The BT Pension Scheme's responsible investment policies have won top spot in a ranking of funds with sponsors strong in corporate responsibility. The sustainable investment company UKSIF surveyed 238 corporate...

News: Impaired annuities market surges.
June 8, 2009... Byline: Tom Willetts The market for enhanced annuities, sometimes known as impa-ired life annuities, is growing rapidly, according to research. The products provide a higher income by reflecting the shorter life expectancy of smokers...

News in brief.
June 8, 2009... Aon Consulting has launched a fixed-cost pensions administration service for trust-based schemes. 'Assured' is designed to provide greater control over costs and service delivery during the recession. Stuart Heatley, managing director...

News: Passives fail to vote ESG.
June 8, 2009... Byline: Tom Willetts Most passive equity managers fail to vote regularly on their assets, according to the Local Authority Pension Fund Forum. The consultancy RImetrics assessed the environmental, social and governance (ESG) risk...

News: Investment insight - Rethinking property.
June 8, 2009... Byline: Phil Ellis - Head of business development for UK and European real estate, Aviva Investors Walk around any town centre in Britain, or drive through an out-of-town industrial estate, and the forest of 'for sale' signs act as a...

In depth: "Pensions is one of the most intellectually stimulating areas of public policy".
June 8, 2009... Byline: Tom Willetts Protestors, policeman and the odd paparazzo lurk near the headquarters of the EEF, the manufacturer's organisation. Hidden away in a smart stone building across from New Scotland Yard and the Department for Work and...

In depth: Legislation will put a spanner in the works.
June 8, 2009... Byline: Steve Bee - Head of pensions policy, Scottish Life Years ago my dad had a Ford Popular. Today we'd call it a car, but back then it was called a motor car. Most weekends he spent his time with the car's bonnet up, taking bits and...

In depth: Personal view - DC lifestyle funds are solutions the UK should be taking more pride in.
June 8, 2009... Byline: Simon Pearse As a nation, the British seem to have a flair for criticising their own achievements and putting their own innovations down. The lifestyle mechanism is one such example. While it is usual for someone to have a snipe at...

In depth: Jargon buster.
June 8, 2009... Key man insurance Key man insurance is a policy taken out by a company to provide some financial protection in the case of death or long term disability of a 'key' employee to the business. Key man insurance provides peace of mind to...

In depth: Technical view - From RDR to RDIP: no easy answers.
June 8, 2009... Byline: Mark Wilson June 2009 will see us move into the implementation phase of the retail distribution review (RDR) and we will have to get use to a new acronym: RDIP the retail distribution implementation programme. But what will that...

In depth: Corporate governance - Trustees must send clearer ESG signals.
June 8, 2009... Byline: Tom Powdrill Are passive managers just a bit too passive, at least when it comes to the way that they deal with their ownership responsibilities? It would appear so, judging by some recent research carried out by RImetrics for the...

In depth: My life outside pensions.
June 8, 2009... Byline: Rob Harper - Partner and head of Hymans Robertson's Birmingham office Rob Harper, partner and head of Hymans Robertson's Birmingham practice, has a real passion for the sport with the egg-shaped ball. Although he no longer plays,...

In depth: Notice board - NAPF update.
June 8, 2009... Hot Topic Seminar 2012 Pensions Reforms In Depth July 15, NAPF, Westminster 9.45am3.15pm Rosie Winterton, minister of state for pensions and the ageing society, heads the list of representatives from government, the...

Pensions workout: Intermediate - Accounting for growth - Intermediate level.
June 8, 2009... Top 10 ways to prosper through better management information (MI): 1) Make sure information is accurate. Questioning the calibre of MI is essential if you want a true picture of what's happening in your business. The drawback of much that...

On the move: Regulator recruits two to the board.
June 8, 2009... Byline: Nick Reeve The Pensions Regulator has appointed Isabel Hudson and Bruce Rigby (pic) as non- executive directors. Hudson currently holds a similar role at QBE, a global non-life insurer, where she has been a board member since...

On the move: Going places.
June 8, 2009... Baker and Brindley move to Mercer Mercer has made two appointments to its newly launched dynamic derisking solutions business. Alan Baker joins as chief operating officer from management consulting firm Oliver Wyman, while Rupert...

On the move: This week on Twitter.
June 8, 2009... When you type in the word 'pension' into Twitter's search box it can return all sorts of results. Aside from press releases, the essential musings of Steve Bee and of course Pensions Week's updates, there is often someone tweeting pension...

Supplement: DCintelligence - Introduction.
June 8, 2009... Byline: Charlie Kirby - Deputy editor Governance is flying up the agenda for defined contribution scheme trustees. Many schemes are now bemoaning the fact they were unable to respond quickly enough to changing economic conditions over...

Supplement: DCintelligence - Equities set to rally before levelling out.
June 8, 2009... Byline: David Rowley The recovery in UK equities will continue for the next few months, but thereafter values will plateau, Legal & General Investment Management (LGIM) believes. The fund manager said the current rally would be...

Supplement: DCintelligence - Variable annuity success in early 2009.
June 8, 2009... Byline: David Rowley Sales of variable annuities rose to their highest ever level in the first three months of 2009, according to Watson Wyatt research. Variable annuities differ to traditional annuities in that payments can rise if...

Supplement: DCintelligence - Aon refutes link between merger and pensions cut.
June 8, 2009... Byline: Charlie Kirby Insurance broker Aon has denied that its recent merger with Benfield has directly influenced the decision to cut its pension benefits. Insurance insiders claim that Aon overstretched its finances in merging with...

Supplement: DCintelligence - PADA sets bar high for DC investments.
June 8, 2009... Byline: David Rowley The quality of the Personal Accounts Delivery Authority's (PADA) investment proposals have been hailed as a breakthrough for UK defined contribution (DC) investing. Both consultants and fund managers have described...

Supplement: DCintelligence - Morrisons opens flexible Sipp for staff.
June 8, 2009... Byline: David Rowley Supermarket chain Morrisons Group has launched a group self-invested personal pension (Sipp) scheme as an additional savings vehicle for staff. The Sipp is designed to allow members of the Morrisons share save...

Supplement: DCintelligence - News in brief.
June 8, 2009... Employers can reap cost savings from salary sacrifice in less than 12 months if employee contributions exceed 500,000 a year, according to Watson Wyatt. Kim Honess, head of flexible benefits consulting at the firm, said most large- scale...

Supplement: DCintelligence - Legal reform.
June 8, 2009... Byline: Charlie Kirby Shareholder litigation has traditionally been seen as a defined benefit issue, but as the pensions landscape shifts to defined contribution, more trustees are considering the potential benefits of legal action. ...

Supplement: DCintelligence - Talking heads.
June 8, 2009... 1 - How have employees reacted to their pension pots falling for what, for many, will be for the first time? 2 - Have you seen any evidence of legal disputes arising in defined contribution (DC) pension schemes yet? 3 - Can you provide...

Supplement: DCintelligence - Schemes based on trust.
June 8, 2009... When it comes to running a contract-based defined contribution (DC) pension scheme, the employer the scheme sponsor has few obligatory responsibilities other than selecting a provider, and collecting and remitting contributions. It is the...

Supplement: DCintelligence - Seeking system synthesis.
June 8, 2009... Byline: David Rowley Banks across the world have agreed to use the Swift system as a unified way of transferring money between themselves. Airports similarly have an agreed global system of codes for the electronic recording of baggages,...

Supplement: DCintelligence - Flying the flag.
June 8, 2009... It surprises many employers to find that their contract-based schemes when set up as a collective, or group scheme, comes under the regulatory control of the Pensions Regulator. Employers often feel that by providing a contract-based scheme...

Supplement: DCintelligence - One idea.
June 8, 2009... Mark Rowlands - Head of corporate partnerships, Axa Member-nominated representatives We know that the Pensions Regulator and the Financial Services Authority (FSA) are keen to encourage more schemes to establish governance committees,...

Supplement: DCintelligence - Don't fall by the wayside.
June 8, 2009... In these challenging times it's easy to see the impact of falling asset values and the result this is having on pensioners nearing retirement. What is not always so easy to see is the role that good governance can play in protecting members'...

News: Equalisation case opens can of worms.
June 15, 2009... Byline: Charlie Kirby Lawyers predict a wave of equalisation litigation following the news that Eversheds and Mercer are facing a claim from a UK scheme. The Britannia Building Society Pension Scheme has filed, but not yet served, a...

News: BGI deal boosts managed funds at BlackRock.
June 15, 2009... Byline: Charlie Kirby BlackRock will become the second largest UK pension fund manager, if the proposed takeover of Barclays Global Investors (BGI) is completed. Only Legal & General has more funds under management, with GBP175,800m....

This week: Silver is better than bronze.
June 15, 2009... Byline: David Rowley - Editor You will all have seen the recent obituaries for final salary pensions in your daily papers. Most of it is obvious stuff except for a piece written by Philip Inman in The Guardian on Friday June 5. ...

News: BlackRock in fiduciary first with Henkel deal.
June 15, 2009... Byline: David Rowley BlackRock has completed the implementation of the first multinational, multi- scheme fiduciary mandate. It is now responsible for GBP1.7bn worth of assets from the US, the UK (approx GBP90m), and the Dutch, German...

News: Policy Exchange calls for scheme funding body.
June 15, 2009... Byline: Tom Willetts A centre-right think-tank has proposed that a new fund should be set up to pay the pensions of employees in unfunded public sector schemes. The Policy Exchange report Public Sector Pensions: The UK's Second...

News: Abbey takes control of its fund's investment risk.
June 15, 2009... Byline: Padraig Floyd Abbey has struck a GBP1bn deal with the trustees of its final salary fund to enable it to improve risk controls at the financial services company. Trustees of the GBP1.7bn Abbey National Amalgamated Pension Fund...

News in brief.
June 15, 2009... Three Conservative MPs have tabled an amendment to the finance bill to make anti-forestalling legislation on higher rate earners less onerous. The amendment from Mark Hoban, David Gauke and Greg Hands is expected to be debated this...

News: Osbourne promises pensions stability.
June 15, 2009... Byline: David Rowley Shadow chancellor George Osbourne has pledged to consult with the pensions industry before bringing in future tax changes if the Conservatives are elected to government. Speaking at the Association of British...

News: SEI boosts governance with overlay.
June 15, 2009... Byline: David Rowley SEI has sought to make its fiduciary management service more compelling by adding F&C's responsible engagement overlay (REO) service to all funds. It has applied the service following increased pressure on UK...

News in brief.
June 15, 2009... If asset allocations were decided according to GDP then emerging markets would take a 35% share, according to Ashmore Investment Management. Head of research Jerome Booth calculated that this would rise to 50%, if one takes into account...

News: Parliamentary DB fund under review.
June 15, 2009... Byline: Tom Willetts A consultation on the future of the Parliamentary Contributory Pension Fund has been launched by the Senior Salaries Review Body (SSRB). With thousands of defined benefit schemes closing across the country, the...

News: Financial ignorance is a global problem.
June 15, 2009... Byline: David Rowley Close to one in nine people (86%) across 15 countries have no idea what income they will receive in retirement, according to HSBC Insurance. The firm's fifth annual Future of Retirement study, entitled It's Time...

News in brief.
June 15, 2009... Nicola Horlick is in talks to buy Bramdean Alternatives, the $178m (GBP109m) alternative investment fund run by her asset management firm, Bramdean Asset Management. The disclosure is latest twist in the battle for control of Bramdean...

News: Pension Corp wins GBP57m buy-in deal.
June 15, 2009... Byline: Tom Willetts The Warwick International Group Pension Scheme has agreed a buy-in with Pension Insurance Corporation to reduce its exposure to risk. Under the terms of the GBP57m deal, the scheme will hold an insurance policy as...

News: Good news for DB schemes on PPF 7800.
June 15, 2009... Byline: Tom Willetts The aggregate funding position of defined benefit schemes improved last month, according to the Pension Protection Fund (PPF) 7800 Index. Using the aggregate funding position of 7,800 schemes, the PPF calculates...

News: Pension schemes to benefit from global property index.
June 15, 2009... Byline: David Rowley Property indices and benchmarking provider IPD has published its first fully fledged global property annual index. It claims that its index will for the first time enable pension funds to consistently compare the...

News: Eagle lands position in pensions department.
June 15, 2009... Byline: Tom Willetts Angela Eagle has succeeded Rosie Winterton to become the 10th pensions minister since Labour came to power in 1997. The move follows the promotion of Winterton to a new role coordinating regional economic...

News: Law Soc advises on electronic signatures.
June 15, 2009... Byline: Tom Willetts Guidance on signing documents electronically when trustees or other parties are unable to attend the same meeting has been issued by the Law Society. The best practice guidelines are useful when trustees deal with...

News: Money purchase benefits cause legal concerns for govt.
June 15, 2009... Byline: Charlie Kirby The government is to pay the costs for appealing a test case on how to apportion a deficit to prevent a breach of European Law. The case concerns the Home Decor Pension Scheme, and will decide how a deficit of...

In depth: Talking heads.
June 15, 2009... Joanne Segars - Chief executive, National Association of Pension Funds Schemes need to be given more flexibility in setting scheme rules on the key issues of retirement ages and indexation. The government has been far too complacent. The...

In depth: Changing hedge fund landscape can benefit schemes.
June 15, 2009... Byline: Rupert Clarke - Chief executive, Hermes Clearly, pension funds and institutional investors who were invested in hedge funds during the past 18 months have been disappointed that performance has, in many cases, fallen way short of...

In depth: Personal view - Third way annuities will benefit from continued product development.
June 15, 2009... Byline: Mike Morrison In today's economic climate, deciding how to plan effectively for retirement and whether to take the income or drawdown route is made all the more complicated by increasing longevity and inflation; two factors that...

In depth: Jargon buster.
June 15, 2009... Limited Price Index Since the Pensions Act 1995, pensions are protected by the Limited Price Index (LPI). Pensions must increase each year by the LPI or 5% whichever is lower. This means that your pension will not be eroded by inflation...

In depth: Technical view - Outsourcing benefits: a good idea?
June 15, 2009... Byline: James Markham In view of the availability of more sophisticated automation, more in-house capability in companies and a growing urge to 'own the employee relationship', one could be forgiven for thinking the demand for benefits...

In depth: Trustee governance - Trustees are a mixed bunch these days.
June 15, 2009... Byline: Clive Gilchrist I have two pension scheme clients undertaking governance reviews at present, and my colleagues are involved in a number of others. A few years ago this would have been unknown; pensions governance is a term that,...

In depth: Without prejudice.
June 15, 2009... Byline: Francois Barker, Hammonds Doesn't sound very tempting, does it? But as a number of recent pensions ombudsman determinations have demonstrated, this is the reality facing those serving as individual trustees of pension schemes. In...

In depth: Notice board - NAPF update.
June 15, 2009... Hot Topic Seminar 2012 Pensions Reforms In Depth July 15, NAPF, Westminster 9.45am3.15pm Rosie Winterton, minister of state for pensions and the ageing society, heads the list of representatives from government, the...

Pensions workout: Advanced - Accounting for growth - Advanced level.
June 15, 2009... The credit crunch has obviously taken its toll on the shares and pensions market, creating uncertainty and anxiety among would-be investors. As a result, those involved in selling or managing pension schemes may be feeling the pinch, so finance...

On the move: FP creates strategy sales role for Nicklin.
June 15, 2009... Byline: Nick Reeve Friends Provident has appointed Nicola Nicklin as sales and strategy manager, a new role within its corporate pensions team. Prior to this, Nicklin was corporate development manager in Friends Provident's sales...

On the move: Going places.
June 15, 2009... Nusseibeh nets fresh role at Hermes Hermes Fund Managers has hired Saker Nusseibeh to the newly created role of head of investments. Nusseibeh joins from Fortis Investments, where he was global head of equities and CIO for global...

On the move: This week on Twitter.
June 15, 2009... The prime minister has taken quite a battering these past few weeks. But rest assured, Mr Brown, there are some people who still stand up for you. Independent blogger and tweeter John Band argues that the so-called 'pensions raid' by the...

News: Cohorts to be replaced by new model.
June 22, 2009... Byline: Tom Willetts The Actuarial Profession has published a new model for forecasting future improvements in longevity, which is expected to become the industry's benchmark. It will replace the short, medium and long cohorts, which...

News: Calling all treasurers.
June 22, 2009... Byline: Charlie Kirby Hewitt Associates has called on company treasurers to increase their involvement in helping UK companies fund their pension schemes. Andy Corvesor, principal at Hewitt Associates, has come up with four ways in...

This week: An end to a messy affair.
June 22, 2009... Byline: David Rowley - Editor When this was written last Friday, there were three theories on what exactly spurred Sir Fred Goodwin to voluntarily give up a part of his pension: - The News of The World discovered where he is hiding...

News: Recession far from over, say schemes.
June 22, 2009... Byline: David Rowley Pension scheme managers and trustees remain unconvinced the recession is over and many expect more bad news to follow. Feedback from PW's Trusty30 found that a slight majority (54%) felt reports of the end of the...

News: Aegon to fight former employee pension claims.
June 22, 2009... Byline: Charlie Kirby Aegon is taking a former employee to the Court of Appeal after being ordered to compensate her for the loss of a final salary pension. Samantha Roberts originally took Aegon to court to sue for unfair redundancy...

News: Tesco unlocks property value in leaseback deal.
June 22, 2009... Byline: Tom Willetts Tesco has raised almost half a billion pounds from a deal with its pension scheme to unlock value in the retailer's property. A 50/50 joint venture with Tesco Pension Trustees the guardians of its GBP3.9bn pension...

News: Law firm to mount ASP tax challenge.
June 22, 2009... Byline: Charlie Kirby Clarke Willmott is seeking individuals adversely affected by alternative secured pension (ASP) laws to take part in litigation against HM Revenue & Customs (HMRC). Last October, Robert Morfee, partner at the firm,...

News: Gissings joins Capita Hartshead empire.
June 22, 2009... Byline: Charlie Kirby Capita Hartshead has acquired Gissings Consultancy Services for an undisclosed sum. Gissings has its biggest pensions and actuarial presence in London and the south east. No redundancies are planned as part...