Pensions Week articles from March 2005

Pensions Week archives from March 2005

News: Charity forced to close its defined benefit doors.
March 7, 2005... The Citizens Advice Bureau (CAB) has shut its defined benefit (DB) pension scheme to new employees, while bumping up contributions for existing members. Contribution levels for the final salary arm of the CAB pension scheme will shoot up...

News: Governance for Owners team set to enhance shareholder activity in the US.
March 7, 2005... Global investors keen to show their muscle as shareowners in selected US quoted companies can now do so through a corporate governance and shareholder engagement firm set up by former Hermes directors. Governance for Owners (Go), which...

News: Watson Wyatt loses another investment consultant.
March 7, 2005... Consultant Watson Wyatt has lost a senior investment consultant from its private equity division, the third consultant to leave the department in six months. Stephan Breban has left Watson Wyatt by 'mutual agreement' to set up his own...

News: Norgrove accepts overseas difficulties.
March 7, 2005... The Pensions Regulator will have limited powers to claw back money from foreign companies who have neglected their UK pension schemes. The regulator's chairman, David Norgrove, accepted that it could be difficult to enforce moral hazard...

News: Uniq takeover deal put on ice.
March 7, 2005... Hopes of a possible takeover for chilled food group Uniq were dashed as the pension trustees and its remaining bidder failed to reach an agreement on how to deal with a GBP102m pension scheme deficit. A spokesperson for Uniq said: "The...

News: Axa completes State Street transfer.
March 7, 2005... Axa Investment Managers (Axa IM) has completed the transfer of its UK investment operations to State Street Corporation. State Street will provide fund accounting, fund administration, performance measurement services and investment...

News: AWD acquires Chase De Vere Financial Solutions.
March 7, 2005... Independent financial adviser AWD has acquired UK rival Chase De Vere Financial Solutions. The acquisition was made through its parent company AWD Holding AG, one of Europe's largest independent financial advice groups. AWD UK chief...

News: Electricity Supply switches on to commission recapture.
March 7, 2005... One of UK's largest pension funds has entered a commission recapture programme in an attempt to save on transaction costs. The GBP17bn Electricity Supply Pensions Scheme (ESPS) has selected Bank of New York (BNY) to provide commission...

News: Pearson to make up oe137m scheme shortfall by 2014.
March 7, 2005... The Pearson pension fund is to inject a total of GBP46m over the next three years into its pension fund to make up the GBP137m deficit identified in its latest triennial valuation. The scheme fell from a 100% funding level in January 2001...

News: BA chooses Aquila admin software.
March 7, 2005... British Airways has appointed Aquila to provide pensions administration software. The appointment follows a review by the airline giant, which previously used Comino's software. British Airways will use Aquila's Administrator system....

News: oe254m deficit forces rate hike at Croydon.
March 7, 2005... The GBP350m London Borough of Croydon will see its contribution rate jump to 21.6% by 2011 following a GBP254m deficit identified in its latest triennial valuation. The shortfall has resulted in Croydon bringing increased contributions...

News: Jagger to advise Chelton (UK) Group.
March 7, 2005... The Chelton (UK) Group pension scheme has appointed actuarial firm Jagger & Associates as investment adviser. Chelton is part of the defence industry and has an expanding final salary scheme with assets of GBP35m. Commenting on the...

News: PPF tenders for managers.
March 7, 2005... The Pension Protection Fund (PPF) has put out to tender for two investment managers and a global custody contract. The assets for the two fund managers are expected to be GBP150m with regular income of GBP300m per year plus other cash flows...

News: Balance between employer and member-nominated trustees favoured by many.
March 7, 2005... More than half of scheme trustees and pension managers in the UK believe that employer-nominated trustees bring essential pensions or financial experience, according to a survey. Only 8% agreed that employer-nominated trustees could not be...

News: Clerical Medical creates A-day calculator.
March 7, 2005... Clerical Medical has designed an A-day calculator to help financial advisers determine what protection, if any, their clients will need. The tool will help calculate the pension fund value at the selected retirement age (SRA), the tax-free...

News: Politicians told to listen to pensioners' views.
March 7, 2005... Unite, the largest pensioner organisation in the UK, has warned the UK's political parties not to ignore the 'grey vote' of 11 million pensioners, which could prove crucial at the next election. Unite general secretary, Roger Turner, said...

News: Financial advisers required to inform clients about the open annuity option.
March 7, 2005... Financial advisers who fail to inform clients about the open annuity option could be accused of mis-selling after A-day. Open Annuities, chaired by incoming National Association of Pension Funds' chairman Robin Ellison, warned advisers that...

News: Watson Wyatt warns of necessity of pension administration preparation in time for A-day.
March 7, 2005... Employers should act now on pension scheme administration to cope with A-day legislative changes, consultants Watson Wyatt warned. Gary Evans, regional head for benefits administration solutions for the consultancy, said: "Given that it can...

News: Ciba workers up in arms over 44% loss of pension benefits.
March 7, 2005... Beleaguered workers of Ciba Specialty Chemicals' Clayton plant are set to lose up to 44% of their pensions as the company stands fast on redundancy negotiations. The 316 workers of the Clayton plant in North Manchester, which is being...

News: Metal Box selects Northgate HR's PS Pensions software.
March 7, 2005... The GBP1.4bn Metal Box scheme has selected Northgate HR to provide pensions software. The scheme has selected PS Pensions, the pensions administration system provided by Northgate. The PS Pensions system incorporates workflow record...

News: SWIP increases assets under management.
March 7, 2005... Scottish Widows Investment Partnership has increased its funds under management by 6% to GBP82bn. SWIP won GBP2.1bn of new business in 2004, a sizeable portion of which came from institutional sales, in particular fixed interest. ...

News: NHS Employers call for organisations to respond to consultation on scheme changes.
March 7, 2005... NHS Employers has called for more organisations that employ NHS staff to respond to the consultation on changes to the scheme. The consultation, which ends on 11April, has so far received 1,500 responses. John Rostill, chair of NHS...

News: Buchan set to strengthen Standard Life's corporate pensions profile.
March 7, 2005... Standard Life has boosted its corporate pensions offering with the appointment of an ex-Royal London employee. Ian Buchan has been hired as Standard Life's national development manager in its corporate pensions division. Buchan will...

News: Pension funds scoop up property stocks as life funds disinvest.
March 7, 2005... Life companies are disposing billions of pounds of commercial property stocks, but pension funds are scooping them up, according to Investment Property Databank (IPD). Last year saw balanced pooled funds, which exclusively have pension...

News: HPUT has strong showing in 2004.
March 7, 2005... Hermes Property Unit Trust (HPUT) has maintained strong outperformance for 2004. The unit trust produced an overall return of 19.7% last year, compared to the average return of 18.2% of its benchmark, the HSBC balanced PUT index. ...

News: Schroders sees positive results for 2004.
March 7, 2005... Schroder Investment Management saw significantly higher profits in asset management and good investment performance in its preliminary results ending 31 December 2004. Asset management revenues increased from GBP417.8m in 2003, to GBP491m...

News: Sting in the tale - Six steps to pension reform.
March 7, 2005... Alan Johnson, the secretary of state for work and pensions, has announced six principles to guide pension reform. He says these will underpin the reform of both state and private pensions, and will be the criteria against which further reform...

News: Jupiter revamps Sipp to include online valuation service.
March 7, 2005... Jupiter Asset Management has re-launched its self-invested personal pension (Sipp). The revamped scheme, which will be administered by Suffolk Life, signals Jupiter's intention to build its share of this growing market. Working with...

News: FAS hopes pinned on spending review.
March 7, 2005... The government has come clean on the inadequacy of its Financial Assistance Scheme (FAS), admitting that more money is needed to rescue members whose schemes have folded. Pensions minister, Malcolm Wicks, conceded that the GBP400m set...

News: Ombudsman watch.
March 7, 2005... Dying young One of the most sensitive tasks trustees can face is the decision about how to exercise their discretion over death benefits when a scheme member dies young. Last week, the ombudsman issued two determinations dealing with just...

News: Pension liabilities have an adverse affect on many UK companies.
March 7, 2005... Pension liabilities are having a detrimental affect on companies' profitability, financial health and their ability to invest in new projects, according to latest research. A report by SEI Investments found that pension fund liabilities...

News: Dunstan Thomas creates A-day process management solution.
March 7, 2005... Dunstan Thomas has strengthened its portfolio for companies preparing for A- day by introducing a business process management solution called Imago Process Manager. Imago will allow providers, administrators and adviser firms to model and...

NAPF Notice board.
March 7, 2005... 14 - 15 April 2005 International Convention Centre, Birmingham At a time when the Local Government Pension Scheme (LGPS) faces high profile issues over long-term affordability and sustainability, this conference will provide an...

Spotlight: Quenching your money market thirst with IMMFA.
March 7, 2005... The Institutional Money Market Funds Association (IMMFA) announced this week that, at the close of 2004, its membership accounted for $232bn (GBP120.5bn) of money fund assets under management. The organisation has cemented its place in the...

Opinion: Leader - Waiting for clarity and progress from the FAS.
March 7, 2005... Just as one may feel an overpowering urge to scratch the scab formed over a cut or graze, so the government seems compelled to pick away at one of its own wounds - the issue of lost pension benefits at underfunded final salary schemes. The...

Opinion: Personal view - Not so compelling after all.
March 7, 2005... With life expectancy statistics improving year on year, growing consumer debt and an unstable house market, saving for retirement has never been so important. But is compulsion the way forward? Compulsory private pension contributions are...

Opinion: Inside view - Investing in hedge funds doesn't have to end in tears.
March 7, 2005... I have appeared twice at the Edinburgh Fringe Festival. On both occasions, acting in Spanish tragedies written by Garcia Lorca. So this year will see my third appearance on the stage in Edinburgh. Rather than appearing at the back of a pub that...

Governance update: Exercising your voting rights the responsible way.
March 7, 2005... As owners of a significant swathe of British business, pension funds have a responsibility to ensure their members' money is being invested sensibly. Pension funds also have the right, as shareholders, to establish and ensure that the companies...

People on the move: Northern Trust appoints four.
March 7, 2005... Northern Trust Global Advisors has appointed Elspeth Lumsden as senior researcher and Michelle Hilliman as researcher to the London team. Northern Trust has also appointed Justin Chapman and Iain Scott as senior vice presidents within its...

People on the move: Axa benefits from Fraser's appointment.
March 7, 2005... Axa has appointed Lorraine Fraser as business development manager within the corporate benefit solutions (CBS) team. In her role, Fraser will be responsible for relationships with employee benefit consultants Watson Wyatt, Hewitt, and...

People on the move: Burton joins Hermes' management committee.
March 7, 2005... Hermes Property Unit Trust has appointed Caroline Burton to its committee of management. Burton worked as an executive director in charge of investments for Guardian Royal Exchange until 1999. She is currently a board member of several...

News Just In... : Trustees not factoring sponsors' financial strength into investment decisions.
March 7, 2005... Trustees are ignoring the default risk of sponsoring employer bankruptcy and imposing more risk on members as a result, according to a study of the largest UK defined benefit schemes in the UK. The report by rating agency Standard and...

News Just In... : DeAM fund management could be snapped up by rivals.
March 7, 2005... The British fund management arm of Deutsche Asset Management (DeAM) could be up for grabs from rival firms as a strategic review of its business is underway. It is believed DeAM has been approached by Bramdean Asset Management, which was...

News: Food store's DB closure is hard for members to swallow.
March 14, 2005... Disgruntled members of Grampian Country Food Group pension scheme are to be thrown out of their final salary plan and dumped in a money purchase offering under proposed changes to the fund. The company's proposals are to close down the...

News: Funds see similar returns despite differing strategies.
March 14, 2005... Pension funds have bounced back from the investment losses suffered in the first few years of the decade with soaring double digit returns last year, according to a recent survey. Russell/Mellon's UK pension fund analysis showed that the...

News: Clarks makes a step in the flexible pension scheme direction.
March 14, 2005... Shoe retailer Clarks has introduced a flexible pension scheme which will be available to its workers next month. The scheme will give members the opportunity to split their investments between money purchase and final salary. The...

News: ITN boosts fixed income allocation.
March 14, 2005... The Independent Television News (ITN) pension scheme is looking to increase its 30% fixed income investment portfolio by 10%. The scheme decided to review the portfolio after it changed consultants in December last year. ITN replaced...

News: Credit default swaps useful in managing pension plan deficits.
March 14, 2005... Hewitt Associates has called on companies to consider wider solutions when it comes to managing pension plan deficits. The global human resources firm said stock market returns only provided limited relief and that cash contributions were...

News: Presenting the trustee investment masterclass series.
March 14, 2005... Uk pensions fund trustees will be able to access information to assist with investment decisions via a masterclass series from Merrill Lynch Investment Managers (MLIM). The fund manager is issuing a regular series of information cards, to...

News: Selfridges places DeAM under review.
March 14, 2005... Deutsche Asset Management (DeAM) has been placed under review by the GBP120m Selfridges pension scheme following underperformance concerns, PW understands. It is believed the fund manager was placed under review after it underperformed its...

News: Baroness Hollis slams the citizen's pension.
March 14, 2005... The citizen's pension will remove vital benefits for women, carers and the disabled if it is introduced, according to government officials. Baroness Patricia Hollis, Labour spokeswoman and minister for children and the family, slammed the...

News: PAG is disappointed with limits of FAS benefits offer.
March 14, 2005... The Pensions Action Group (PAG), which includes former workers of Allied Steel & Wire who lost most of their pensions savings when their company went bust, has called for greater clarity over the Financial Assistance Scheme. Although the...

News: Software flexibility helps Northgate win DMGT contract.
March 14, 2005... Media firm Daily Mail and General Trust (DMGT) has appointed Northgate HR to provide pensions administration software. DMGT pensions director Geoffrey Staines, who led the evaluation team, said Northgate HR's PS Pensions systems was...

News: Unions press for windfall tax to aid scheme losers.
March 14, 2005... Unions have urged the government to claim GBP5.5bn in taxes from big business to shore up the ailing Financial Assistance Scheme (FAS) Tony Woodley, secretary of the Transport and General Workers Union, has called for the chancellor Gordon...

News: Henderson misses target and loses brief.
March 14, 2005... The Nottingham University pensions scheme has dropped Henderson Global Investors due to underperformance on its GBP17m active balanced brief. Martin Wynne-Jones, director at the university, said: "The transfer took place on 1 March....

News: Doctors resist working to 65.
March 14, 2005... There will be an exodus of doctors from the National Health Service (NHS) if plans to increase the retirement age from 60 to 65 go ahead, according to the British Medical Association (BMA). A retirement surge is also expected next year as...

News: Schroders pinches DC boss from BGI.
March 14, 2005... Schroder Investment Management has poached the head of defined contribution (DC) of Barclays Global Investors to boost its DC offering. Michael MacDonald-Smith joined Schroders as head of UK DC business. He will report to Miles O'Connor,...

News: James Hay improves online service for Sipp clients.
March 14, 2005... James Hay has enhanced its online services for clients with self-invested personal pensions to make transactions easier. The service allows users to buy and sell select or collect investments, switch holdings within a fund range and access...

News: Letters - Useful information.
March 14, 2005... I thought I should write to let you know that I find Pensions Week extremely useful in my role as shadow minister for work and pensions in the Lords. It is difficult to keep up-to-date, and you are providing an important service to those...

News: Letters - Life in trustee model.
March 14, 2005... Recent research from the London Business School (PW 28.02.05) highlights a conflict of interest facing trustees but fails to reflect the context within which trustees work. Removing senior company decision-makers from the trustee board will...

News: Letters - Guilty actuaries?
March 14, 2005... The outcome of the Credit Lyonnais action versus Watson Wyatt will be interesting. As a relatively small IFA in Reigate whose offices are opposite Watson Wyatt's glorious edifice, we are increasingly concerned by the advice the actuarial...

News: Pickering attacks rules burden.
March 14, 2005... The government has come under renewed criticism over the deluge of complex information trustees are expected to deal with under the Pensions Act 2004. Alan Pickering, consultant at Watson Wyatt and former chairman of the National...

News: Vertex seeks to enter business process outsourcing market with Marlborough.
March 14, 2005... Vertex Data Science, a business process outsourcing company, is looking to acquire Marlborough Stirling. Marlborough Stirling provides solutions to the pension, mortgage and life investment market sectors. Tom Drury, managing director...

News: Call to spell out risks to employees.
March 14, 2005... The pensions industry has urged employers and trustees to make it easier for employees to understand the investment choices for their pension funds. Matthew Demwell, European partner at Mercer Human Resource Consulting, and Malcolm McLean,...

News: Pension provision still low among women.
March 14, 2005... Women are still far behind men when it comes to making pension provision, according to a report by the Pensions Advisory Service (PAS). The PAS, which recently set up a helpline for women, said it was inundated with more than 8,000...

News: F&C recommends pre-empting REITs.
March 14, 2005... Investors who want exposure to property need not wait until Real Estate Investment Trusts (REITs) are introduced, according to F&C Property Asset Management. The government is currently consulting on the introduction of US-style REITs to...

News: Trustee - Deficits cloud picture.
March 14, 2005... We are at the stage in the quarter when most trustees have completed their regular cycle of meetings. Investment returns for 2004 were not as good as for 2003 but were, nevertheless, very satisfactory with total fund returns for the year,...

News: Pensions Regulator to boost confidence in security of work-based pensions.
March 14, 2005... The Pensions Regulator will aim to play a significant role to help improve confidence in work-based pensions when it comes into force next month. In its response to the Pensions Commission's report by Adair Turner, the regulator, currently...

News: Axa IM sees increase in profits in 2004.
March 14, 2005... Axa Investment Managers (Axa IM) saw GBP20.2bn of new money for its financial year ending 31 December 2004, and an increase of 128% from 2003. Institutional business accounted for GBP13.3bn, while retail business produced GBP3.3bn. ...

News: Ombudsman watch.
March 14, 2005... Perversity Last week, I promised that this week I would continue with my analysis of last week's case. In particular, I said I would talk about some interesting observations by the ombudsman on what he regards as sufficient inter-...

News: Development of targeted return solutions needed to allay DC investors' fears.
March 14, 2005... Defined contribution (DC) providers should offer targeted returns to investors to remove some of the uncertainty surrounding the size of their final pension fund. Pension scheme trustees, consultants and providers have called for greater...

News: BAM opts for Asian equities over bonds.
March 14, 2005... Baring Asset Management (BAM) has valued equities over bonds in its latest global report. The fund manager said it preferred equities over bonds in Asia, particularly in Japan, and that Asia would benefit from the revival in China in the...

NAPF: Notice board.
March 14, 2005... Administration of pensions These days it is more important than ever for anyone involved with pensions scheme administration to become familiar with legislative change and the impact of the pensions and finance acts on scheme arrangements,...

Governance update: The importance of having a senior non-executive director.
March 14, 2005... RREV uses the corporate governance policy of the National Association of Pension Funds (NAPF) as a flexible framework on which to base their assessments of company practice. The NAPF's policy is fully supportive of the combined code. One...

Conference Focus: A trustee's mind is a terrible thing to waste.
March 14, 2005... For the UK pension fund trustee in today's investing environment, the challenge of dealing with investment strategy and portfolio construction has never been greater. This week's National Association of Pension Funds (NAPF) investment...

Special Focus: Pension Fund Mandates - Intro.
March 14, 2005... Devising investment strategy is possibly one of the hardest jobs facing a UK pension fund trustee. A straight equity/bond split is no longer adequate to deal with funding demands. Deficits need to be plugged, while liabilities need to...

Special Focus: Pension Fund Mandates - A tailor-made solution to meeting long-term liabilities.
March 14, 2005... The growth in alternative mandates has been such that they threaten to become the norm in a few years. The increased awareness that pension funds need to grant mandates which can match, or even exceed, long-term liabilities to reduce deficits...

Special Focus: Pension Fund Mandates - Effective pension scheme risk management.
March 14, 2005... Pension schemes were funded on an aspirational basis 20 years ago. The benefits were generous but not unduly so - while the headline accrual rate was often attractive, there was no requirement for inflation linking in deferment or in payment....

Special Focus: Pension Fund Mandates - Company Profile - BNP Paribas.
March 14, 2005... Background BNP Paribas is an international financial services group, with solid roots in Europe, a significant and growing presence in the US and leading positions in Asia. It has one of the largest international banking networks,...

Opinion: Leader - Time to push the pause button on pensions legislation.
March 14, 2005... Is it too late for someone to press the pause button on the legislative changes that are currently piling up on pension funds? The question should be asked, because we are now entering a period of upheaval that could make the last few years...

Opinion: Personal view - The necessity of keeping up-to-date.
March 14, 2005... With the unprecedented pace of legislative changes in pensions, the loss of public confidence in the system and the increased responsibilities being placed upon pension scheme trustees and their sponsoring employers, the need for suitably...

Opinion: Inside view - The ins and outs of private equity investment.
March 14, 2005... Gill Wadsworth: How much has the level of interest grown in private equity and venture capital investment by UK pension funds in the past year? Anne Glover: Our 2004 figures will come out in two months' time which will be more complete,...

Insight: The alternative route to investment.
March 14, 2005... With increasing volatility in global stock markets and focus shifting to the risks associated with the mismatch between pension liabilities and assets, the need to maximise returns while managing risk has become ever more important for pension...

Roundtable: The progression of DC pension plans - Intro.
March 14, 2005... The rise of defined contribution (DC) pension provision in the UK has placed the individual firmly at the centre of retirement planning. Employees are increasingly left to take responsibility for their own saving provision, and are expected...