Pension news

Week ending 13 November 2020

RPI response imminent

In a letter from the Chancellor to the Chair of the UK Statistics Authority, Rishi Sunak has confirmed that their joint response to the RPI consultation will be published on 25 November 2020, alongside his Spending Review.

Sponsor distress guidance for trustees

The Regulator has published guidance for trustees to help them prepare for possible sponsor distress. The guidance stresses the importance of an integrated risk management approach and engaging early with the sponsor. It also highlights being alert to pension scams or unusual transfer activity.

This ties in with the Regulator’s new campaign to combat pension scams. Pension providers, trustees and administrators are urged to pledge their commitment to the campaign and to protect their scheme members from scams.

Risk reduction transactions

The Prudential Staff Pension Scheme has insured the longevity risk of around 20,000 pensioners in a longevity swap for £3.7 billion with Pacific Life Re. The swap used a Guernsey-based captive insurer owned by the trustees.

The Reckitt Benckiser Pension Fund transacted a £415 million buy-in with Scottish Widows in March 2020, insuring around half of its liabilities for current pensioners.

It has also been announced that the Baker Hughes (UK) Pension Plan completed a buy-in with Just Group, covering £100 million of pensioner liabilities, in May 2020.

Recent publications

News

20 November 2020

In the news this week, the second Lloyds judgement says that historic transfer payments need to reflect GMP equalisation, the Pension Schemes Bill moves back to the Lords, TPR gets tough on AE compliance, the FCA surveys DB transfer advisers again and another buy-in is completed.

Arena

Pensions Arena October 2020

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.

Perspective

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.

Arena

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.

Perspective

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.

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