Pension news

Week ending 24 April 2020

TPR updates Covid-19 guidance

The Regulator has provided further guidance on how the Coronavirus Job Retention Scheme interacts with Automatic Enrolment, especially with those DC schemes where contributions are not based on AE band earnings, and for those employers who operate salary sacrifice arrangements. The guidance for trustees on DC scheme management and investment has also been updated with more information for employers wanting to reduce their contributions.

Suspension of DRCs

David Fairs, TPR’s executive director for regulatory policy, analysis and advice, has suggested that between 5% and 10% of DB sponsoring employers are currently seeking to suspend their deficit recovery contributions. Other reports have estimated the number of companies seeking a suspension at around 500.

Premier Foods schemes

Premier Foods has announced a segregated scheme merger of three of its DB schemes, the RHM, Premier Foods and Premier Grocery Products pension schemes. The RHM scheme is moving closer to a buy-out whereas the Premier Foods scheme has a sizeable deficit. The merger will save around £4 million in annual costs and allow any surplus on a buy-out of RHM to be redistributed to the other two schemes. The net present value of future deficit contributions is expected to reduce from £300-320 million to £175-185 million.

Recent publications

News

05 June 2020

In the news this week, there are two DB scheme closures, changes to the Coronavirus Job Retention Scheme and the FCA publishes new rules on pension transfers whilst the CMA reminds trustees about their compliance statements

Arena

Pensions Arena April 2020

Given the very company/scheme-specific impact of the Covid-19 pandemic, in this quarter’s Arena we simply show all the usual financial and investment analysis for what was a very turbulent first three months of 2020, plus a summary of key pension developments and Company pensions news over the quarter.

Briefing

Survey of company actions

Over the autumn of 2019, BAC conducted an extensive survey of the actions which companies are taking to manage their defined benefit (DB) and defined contribution (DC) pension arrangements.

Arena

Pensions Arena January 2020

2019 marked 50 years since Neil Armstrong walked on the moon and this was obviously on the Queen’s mind in her Christmas message as she talked about a bumpy year but one with small steps of progress as well. In terms of pensions, it also felt like a year of small steps and occasional bumps. In this quarter’s Arena, we take a positive look back at 2019, as well as looking forward to some expected pension developments over 2020.

Arena

Pensions Arena October 2019

Despite the very different circumstances facing individual companies, bac‘s autumn 2019 survey reveals a surprisingly consistent picture of the actions which companies are finding most attractive to manage their DB and DC pension arrangements.

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