Week ending 10 July 2020
In the Chancellor’s summer statement, the only item of note for pensions was the new ‘Kickstart scheme’, which involves a £2 billion fund to pay for short term work placements for 16-24 years olds on universal credit. The funding for these placements will cover the minimum wage, employer’s National Insurance contributions and also auto-enrolment contributions.
The Pensions Dashboards Programme has launched a call for input on the data standards required for dashboards, with a view to publishing a first version of the standards in the autumn. These standards will cover the data items that schemes will be required to provide and the format that the data must be in. Getting an agreed version of the standards should mean that schemes are able to move forward with their planning for this project.
Rolls-Royce is reported to be consulting on closing its DB scheme to future accrual. This had been planned for four years’ time but, following the pandemic, the company has now proposed bringing this forward. The scheme has approximately 10,000 active members, despite closing to new members in 2007.
UBS’s UK scheme has completed a £1.4 billion longevity swap covering 2,700 pensioner members. The transaction used a passthrough insurance contract with Zurich, with the longevity risk then reinsured with Canada Life.
In the news over the last week, the Pension Schemes Bill is at the final hurdle, automatic enrolment limits are reviewed, there is new research into trustee decision-making, the FCA sees signs of improvement in DB transfer advice and a full buy-in is completed.
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.
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.
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