Week ending 31 May 2019
TPR publishes tranche 14 analysis
The Pensions Regulator has published its latest analysis of the expected funding position of schemes whose valuation date falls between September 2018 and September 2019. On average, TPR expects a marginal improvement in funding position over the three year inter-valuation period, but not by enough to mean that current recovery plans are still on track. The median required increase in deficit contributions is expected to be in the range 25%-50%, if current recovery plan end dates are to be maintained. Meanwhile, TPR notes that for FTSE 350 companies the ratio of their dividends to deficit contributions has increased from 9.2:1 in 2012 to 14.2:1 now.
TPR replaces trustees due to lack of competence
For the first time, TPR has replaced an entire trustee board due to its lack of competence. An independent trustee has now been appointed to oversee the Dunnes Stores DC scheme. The previous company-appointed trustees had been in place for over a decade and had persistently failed to address a number of governance issues raised by the Regulator.
DB closure prompts strikes at Scottish airports
Unite union staff at Aberdeen and Glasgow airports have voted to strike over the proposed closure of their DB scheme. AGS Airports Ltd, which owns both airports, had been in talks with unions about the closure of the DB scheme but closed the consultation process last week. AGS responded to the notice of strike action saying that the DB scheme is ‘simply unaffordable with the cost to the company due to rise to 24.7% per employee’.