Pension news

Fortnight ending 21 August 2020

Regulator’s internal review

In a letter responding to the Work and Pensions Committee’s questions about its handling of the Norton Motorcycles case, the Regulator’s chief executive has said that an internal review is being conducted to consider its approach and response to the scam and to see if there are further lessons to be learned. TPR makes the point that, as a risk-based regulator, it does not have the resources to review every small scheme like the Norton schemes.

Inflation bounces back up as lockdown eases

After the low levels of CPI and RPI in May and June 2020, the Office for National Statistics has announced that July’s CPI was 1.0% (up from 0.6% in June) and July’s RPI was 1.6% (up from 1.1% in June). ONS has also given details of its plans for returning “to the field” to collect prices, following the easing of restrictions on movement.

Two deferrals of deficit contributions

Coats Group has announced in its 2020 half-year results that it reached agreement with the trustees of its UK scheme to defer the payment of deficit contributions due from April to December 2020 due to Covid-19. These deferred payments, which amount to around £13 million, are expected to be made up over 18 months starting from mid-2021.

In its half-year results, Capita has disclosed that, with the agreement of its trustees, it has delayed a £31.7 million deficit contribution that was due to its DB scheme in June 2020 until the second-half of the year.

De-risking activity

The Littlewoods Pension Scheme has completed a buy-in with Rothesay Life for £930 million, covering around 6,500 members (more than 90% of whom were deferred pensioners).

Meanwhile the Siemens Benefits Scheme has agreed a £530 million pensioner buy-in with Legal & General and the ICI Pension Fund has completed its ninth buy-in with Legal and General for £70 million.

Recent publications


25 September 2020

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.


Endgame planning

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.


Pensions Arena July 2020

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.


Emerging from lockdown

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.


Getting buyout ready

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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