Pensions news

Week ending 26 April 2019

Fines over inadequate chair’s statements upheld

The Pensions Regulator has won two appeals in Court hearings at the First-Tier Tribunal for fines which it had imposed for inadequate chair’s statements, although in one case the fine was reduced from £2,000 to £500. TPR has subsequently issued a statement warning that trustees must ensure their chair’s statements are compliant with the law.

Strikes at Aberdeen airport over DB closure

Unite union members working at Aberdeen airport have voted to strike over pay and the proposed closure of their DB scheme. The scheme closure would affect members at Aberdeen, Glasgow and Southampton airports, which are all owned by AGS Airports Limited.

Stark warning from BMA

The British Medical Association has issued a stark warning to the Chancellor Phillip Hammond, saying that the NHS pension scheme rules must be reformed to reduce the risk of doctors reducing their hours. The annual allowance, particularly the tapered annual allowance for high earners, has meant that many doctors have been hit with large tax bills. The BMA has been calling for reform of the rules since August 2018 but, after receiving no response from the Chancellor, has now “gone public”.

Prudential Retirement reinsures $2.6 billion

The US life insurer, Prudential Retirement, is reported to have transacted around $2.6 billion of reinsurance contracts for UK pension schemes’ longevity risk (covering around 16,000 pensioners) since the beginning of 2019 alone. This indicates how strong 2019 is likely to be for the UK bulk annuity market, as providers usually reinsure their longevity risk to help free up capital so they can write further business.