The pensions industry has rallied behind the Conservatives’ call to suspend compulsory annuitisation at 75 years old.

Anyone who was on the verge of going to this year’s NAPF conference and then decided against it should skip this part of the magazine.

The Pension Protection Fund (PPF) is to shortly publish proposed changes to its risk-based levy to help make it fairer and more stable.

The NHS is encouraging employees to switch to a new pension with a later than normal retirement date to help with staffing shortfalls.

Financial Assistance Scheme (FAS) members have reacted angrily to the disparity between deals that give full guarantees for savings, but cutbacks to their pensions.

Large employers are steering clear of enticing members to leave schemes with enhanced transfer value exercises (ETVs), as they fear being embroiled in mis-selling scandals.

Clarification on the regulators’ new powers is expected to be unveiled this week, according to work and pensions minister James Purnell, speaking at the NAPF conference.

David Norgrove, chairman of the Pensions Regulator, has defended the UK’s levels of regulation and warned critics to be careful what they wish for.

The NAPF’s 2008 conference was one of the busiest in years, with an estimated 1,000 delegates.
Chief executive Joanne Segars described the event as the liveliest for years, while there was also much praise for the new DC stream.

The chairman of the National Association of Pension Funds (NAPF) has urged the ban on short-selling by the Financial Services Authority to be lifted.

Hornbuckle Mitchell has joined the Conservatives in calling for an end to compulsory annuitisation.
Marketing director Mary Stewart said it was unfair to force employees to switch a lifetime of accu-mulated pension savings into an annuity that locked them in for the rest of their life.

The recent falls in the FTSE could have a dramatic impact on third way annuities, according to providers.

Employers must pump at least 6% into their defined contribution (DC) schemes to pass a new quality mark test launched by the National Association of Pension Funds (NAPF) last week.

The mass restructure of the Department for Work and Pensions (DWP) has left the industry in a state of shock.

Gordon Brown’s reshuffle saw former pensions minister Mike O’Brien replaced by Rosie Winterton, and Personal Accounts Delivery Authority (PADA) chairman Paul Myners swapped for Jeannie Drake while a replacement is sought.

Jeannie Drake will act as intermediate chairman of the Personal Accounts Delivery Authority (PADA) while the organisation searches for Paul Myners’ successor.

Premier Pensions Management (PPM) has been appointed to administer financial giant Nomura’s closed UK occupational plan. The plan has 3,000 members. David Farrant, chairman of the trustees, confirmed the appointment of PPM and said it was chosen for it first-class service delivery and customer focus backed by modern technology.

The £30bn Universities Superannuation Scheme (USS) has welcomed a plan to merge the Enhanced Analytics Initiative (EAI) and the Principles for Responsible Investment (PRI).

Pension schemes should adopt global fixed income mandates, according to Baring Asset Management.

American Century Investments, a privately held asset management firm with more than $84bn under management, has opened a London sales office. The firm has appointed as a senior vice-president Michael Green – who was most recently CEO of Morgan Stanley Investment Management, non-Americas – to lead the company’s international development.

PROFILE: Mark Wood, chief executive of Paternoster, really does seem to have the Midas touch for whichever firm he turns his attention to. Here, he talks to Tom Willetts about taking risks, challenging dominant competitors and honouring the promises made to pensioners

Attention has rightly been concentrated on preventing a banking collapse, but the record fall in share prices will have huge repercussions in the wider economy.

Rising inflation rates are an indication that the heat in the cooking pot is increasing – and no one is able to pour any cold water into it to stop it from affecting us. By Ashish Kapur.

Equitisation

In pension fund circles, the word is often used to refer to ways of getting equity returns from cash that might otherwise just be sitting around. Specifically, equitisation may refer to cash available to be called on for private equity investments, to generate equity returns.

Companies must work with shareholders to ensure executive remuneration attracts the best talent without harming profits. By David Paterson.

If government is serious about bank support, it must also get serious about governance, says Tom Powdrill.

Duty calls

A survey of over 300 HR managers carried out by Personnel Today on behalf of the NAPF has found that pensions continue to be an integral and important part of many company remuneration packages.

Break from the Norm

I have not written this column for a while. My thanks to my colleagues who have filled in for me. I was away for a late summer holiday in Greece, more of that anon. When I returned, the financial markets were not, at the risk of understatement, performing in accordance with the norm.

More than ever, investors are looking for effective ways to manage inflationary pressures and market volatility, and despite the current financial upheaval, pension fund requirements to generate sufficient real growth to pay future liabilities will not change.

Ever heard the expression: “Too many cooks spoil the broth”? When it comes to diversifying portfolios, appointing an array of specialist managers may seem like an easy way out, but it can increase the workload and costs for trustees.

The workload already heaped upon trustees makes the upkeep and monitoring of a diversified portfolio challenging at best, says Matthew Craig, and has subsequently made multi-asset investing very attractive.

Investing in lowly-correlating asset classes is a well-worn strategy in controlling risk, says Duncan Rankin, and multi-asset funds’ extension of this idea could prove beneficial to pension funds.

Background

Threadneedle was founded in 1994 and manages more than £60bn* of assets. Offering successful investment solutions is its only business, and many types of clients worldwide now benefit from its informed decision making, including pension schemes, insurance companies, private investors, corporations, mutual funds and affiliate group companies.

The questionable application of multi-asset investing has seen the strategy fall of out favour with some investors, but when more considerately applied, the method can offer many merits, says Ian Harvey.

Background

BNY Mellon Asset Management offers excellence through specialisation. Its unique asset management model is ideally structured to provide best-in-class pooled fund solutions to meet the needs of pension investors. It distributes the investment capabilities of its institutional specialist asset managers, who are free to act as autonomous entities, each with their own distinct and disciplined investment process.

HSBC Actuaries and Consultants (HACL) has promoted Paul Armitage to head of defined contribution (DC) to develop new ideas and products.

Armitage (pic) joined the firm as a consultant in 1997 and has 20 years’ experience in the industry.

Law firm Field Fisher Waterhouse has poached Michael Calvert (pic) from a rival firm to join the company as a partner.

Watson Wyatt has named Fiona Matthews (pic) as chief operations officer for its implemented settlement solutions team.

A J Bell Holdings has appointed Les Platts (pic) as non-executive director and chairman of its audit and risk committee to further the firm’s strategic development.