Week ending 7 February 2020
The FCA has published final rules requiring contract-based pension arrangements to disclose the costs and charges on their default funds for calendar year 2020 by 31 July 2021. The following year, costs and charges must be disclosed for all fund options. This new disclosure will need to include an illustration of the compounding effects of the costs and charges on a representative range of funds. The data must be published either in the Chair’s report or on a publicly available website with a link provided in the Chair’s report.
The Pensions Regulator has announced it is carrying out compliance inspections on some of the large employers who were the first required to comply with the automatic enrolment regulations. The inspections started in January and will carry on for the next few months. The inspections are to ensure that the companies are complying with their ongoing duties under AE.
University College Union members will hold 14 more days of strikes over February and March 2020, with a week long walk-out from 9-13 March. These strikes follow those in November and December 2019 and are being held due to the rising costs for members under the Universities Superannuation Scheme and an ongoing dispute over pay and conditions.
In the news this week, the CMI asks for industry views on how to allow for 2020’s mortality experience, the DWP launches a small pots working group, the autumn Budget is abandoned but the Chancellor announces new measures to help businesses, the Barclays scheme subscribes to a Barclays bond and there is another repeat buy-in.
Journey plans or glide paths may have been around for a long time but they’re at the heart of the Regulator’s proposed new funding code. In this Pensions Perspective, Leonard Bowman looks at how long-term funding and investment plans are evolving and explains why companies are increasingly taking the lead in designing an endgame strategy for their schemes.
This quarter’s Arena has a summary of our recent Pensions Perspective, “Emerging from lockdown”, which looked at how best to tackle the most common pension issues which companies are currently facing. It also shows all the usual financial and investment analysis for the quarter ending 30 June 2020.
As we keep hearing, we are living in unprecedented times. However, as we turn our attention to the future, what does the “new normal” mean for defined benefit pension schemes? In this Pensions Perspective, Leonard Bowman considers the most common pension issues that companies are facing and how best to ensure that the company approaches these on the front foot.
Covid-19 has created many challenges for DB schemes but, for those ready to transact in 2020, it may have created even more favourable market conditions for a buyout. The problem is that most schemes are not there yet. In this Briefing we look at what being “deal ready” actually means and what work it will involve.
Unit 13A | Church Farm Business Park | Corston | Bath | BA2 9AP | Telephone: +44 (0) 1225 481450
Registered Address: 37 Great Pulteney Street, Bath BA2 4DA | Company Registered in England & Wales Company No. 07975135