Week ending 29 May 2020
A host of organisations have joined together to produce a Covid-19 guide for pension savers, designed to allay savers’ fears at this difficult time. The guide covers the current protections and support in place, highlights where savers can go to for guidance and explains how to avoid scams. The contributing organisations are the Money and Pensions Service, FCA, Pensions Ombudsman, TPR, PPF and Financial Services Compensation Scheme.
The Pensions Regulator is reported to be planning to issue guidance, following completion of the first of a new type of capital-backed journey plan. The plan, which involves third-party investment, reportedly includes a fixed cost to the sponsor and a future date for the full buyout of benefits agreed at the outset. We understand that the deal was completed last week without a requirement for regulatory clearance.
In its latest countdown bulletin, HMRC has announced that the final data cuts for GMPs are due to be issued by the end of July 2020. However, it does warn that the timeline could be subject to changing departmental priorities and acknowledges the issues with the data cuts, as reported in our news of 15 May 2020.
The Pensions and Lifetime Savings Association has published a template to help DC trustees with their annual requirement to produce a Chair’s statement. The template is designed to provide a good starting point, so that trustees can save time and costs.
The 3i Group Pension Plan has completed a £650 million buy-in with Legal & General covering 280 pensioners and 570 deferred members. This bulk annuity covers the remaining liabilities within the scheme, following two previous buy-ins in 2017 and 2019.
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.
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