Week ending 12 June 2020
An amendment tabled to the Pension Schemes Bill this week would require the Money and Pensions Service to provide information on state pensions and additional pensions via a pensions dashboard. It is not clear whether this means that MaPS would provide a single publicly-run dashboard or if multiple dashboards would still be introduced. At least the Bill’s progress through Parliament has re-started, with the next phase being the House of Lords report stage on 30 June.
The Corporate Insolvency and Governance Bill is continuing its passage through Parliament, completing its Second Reading in the House of Lords on 9 June. The Bill aims to relieve the burden on businesses during the Covid-19 pandemic. However, the pensions industry has become increasingly concerned that some of the Bill’s provisions, including the proposal for a company moratorium, will weaken the position of DB trustees and the PPF at the expense of those who lend to companies.
The latest ONS data used by the CMI in its mortality monitoring shows a continued gradual decline in weekly “excess” deaths. There were 17% more deaths registered in England and Wales during week 22 of 2020 (23-29 May) than if death rates had been the same as in week 22 of 2019. This follows an 18% increase for week 21 and a 40% increase in week 20. The CMI estimates that by 8 June there could have been between 63,500 and 66,000 more deaths in the UK in 2020 than were expected from 2019’s experience.
In the news this week, pensions tax relief is back in the spotlight, the Treasury publishes draft legislation for CDC schemes and a big 4 accountant looks to temporarily reduce its DC contributions.
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.
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.
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