The cost of buyout has become so competitive that there are suggestions pension schemes could secure a price that is actually lower than the cost of their liabilities.

A comment to make your blood run cold, came to me last week from a member of a pension department who was answering our forthcoming DC survey.

Employers have welcomed the government’s clarification on the Pensions

Regulators’s new powers, but lawyers warn that they give trustees too much power.

The Pension Protection Fund (PPF) has committed to core operating principles of fairness, proportionality and simplicity over the next three years.

Low earning pensioners hit by the abolition of the 10p tax band have flooded a leading consultancy with complaints over the tax hit.

The majority of UK employers now operate a defined contribution (DC) pension scheme, according to Capita Hartshead.

The Aon200 Index, which tracks the surplus or deficit of the 200 largest UK privately-sponsored final salary pension schemes, found that 56% were in surplus at the end of April.
“The aggregate surplus has remained relatively stable during April because positive equity returns have been offset by falling AA corporate bond yields,” said Marcus Hurd, senior consultant and actuary at Aon Consulting.

Almost two million women are losing out on potential pension income due to confusion over their eligibility, according to a study.

Distressed selling of private equity debt by banks presents one of the best bargains currently on the market, according to Henderson Global Investors.

The BBA Aviation pension scheme has agreed to insure its pensions in payment with Legal & General.

Some employers are still failing to take advantage of changes introduced on A-day, according to Aegon Scottish Equitable.

The charging structure priorities identified by the Personal Accounts Delivery Authority (PADA) risks undermining existing employer schemes, according to an expert.

The Pensions Advisory Service has launched a web-based annuity planner.
The self-help tool was designed to help people make choices when they retire and want to turn savings into an annuity.
It was developed by a group which included the Department for Work and Pensions, HM Treasury, HM Revenue & Customs, the Pensions Regulator, the Association of British Insurers, the Financial Services Authority and the National Association of Pension Funds.

Finance directors are leaving their company pension schemes exposed to increasing longevity risks, the Chartered Instituted of Management Accountants (CIMA) has warned.

Balanced pooled funds have seen a significant drop in allocations to UK equities, according to the latest Caps figures from BNY Mellon Asset Servicing.

Men and women will receive equal compensation under a plan unveiled by the Pension Protection Fund (PPF).

Almost two-thirds of trustees sitting on defined contribution (DC) pension schemes think scheme members are in the dark over how much their

pension is worth.

Government spending on pensions and care for older people will rise to around 8% of GDP by 2050, research from the Pensions Policy Institute (PPI) has found.

Charities must take more steps to address pension scheme risk, according to research from Barclays.

Investment tips: In the first of a regular slot, Pensions Week is offering an overview of all the investment tips and trends it has published over the previous two months, reports David Rowley.

At a conference recently, I heard the head of a leading investment consultancy criticise trustees for overpaying investment managers. He said we should pay the managers less and invest the savings on asset allocation advice and strengthening scheme governance.

The rules and guidance are principles-based, allowing fund managers wider scope in the assets they can include in DC funds. By Henry Tapper.

The development of cross-border pensions in Europe is in the pipeline, but there are several hurdles that must first be overcome to make them workable. By Helen Dowsey.

Tom Powdrill looks at the corporate governance legacy left by the late Sir Derek Higgs.

May 15, 2008

Hot topic seminar –regulation rendezvous

NAPF, Westminster

Interference
Last week, our editor referred to “a particular organisation based on the south coast”.

A transfer value is payable to all deferred members of an occupational defined benefit (DB) scheme at their request. It is assessed as an amount equal in value to the expected cost of providing the benefits held in respect of that member within the scheme.

Capital Cranfield Trustees has appointed Robert Matthews (pic) and Edward Dowler as professional independent trustees to meet demand for its services.