Week ending 20 March 2020
Covid-19 continued to decimate financial markets, as the seriousness of its impact has begun to become clearer. The Bank of England cut base rate to just 0.1%, as the Government outlined a series of measures designed to support those businesses and individuals most likely to suffer over the next 3 to 6 months. Some sponsors of DB schemes are facing serious liquidity issues and a TPR statement on how those companies and their trustees should respond is expected imminently. The PPF has also issued its own statement on Covid-19, designed to reassure beneficiaries and deal with some questions from levy payers.
Given the falls in equity markets and the reductions in gilt yields, the Universities Superannuation Scheme exceeded the threshold of its key self-sufficiency funding measure for five consecutive days and accordingly reported this to the Pensions Regulator. The trustees are now said to be considering what action is required and will do so in the context of the forthcoming valuation of the USS, which has an effective date of 31 March 2020.
The cross industry GMP Equalisation Working Group has released more guidance, this time on the timescales of when to rectify members’ GMP benefits in light of the equalisation work that will be needed and the possibility of combining the work.
ITV has lost its eight year legal battle against the Pensions Regulator and has been given six months to put financial support in place for the Box Clever pension scheme. The scheme has around 2,800 members and a £115 million deficit. The financial support will need to be approved by TPR.
Hymans Robertson announces today that it has acquired Bath Actuarial Consulting (BAC). At the same time Andrew Udale-Smith and Leonard Bowman from Bath Actuarial Consulting (BAC) will be joining the firm as new Partners.
In the news over the last week, the DWP responds to its consultation on climate risk governance and reporting for pension schemes, transfer-blocking powers could be on the horizon, MaPS delivers on pension guidance and there’s more de-risking.
This quarter’s Arena has a summary of our recent Pensions Perspective, “Endgame planning comes of age”, which looked at how long-term funding and investment plans are evolving and why companies are increasingly taking the lead in designing an endgame strategy. It also shows all the usual financial and investment analysis for the quarter ending 30 September 2020.
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.
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