pensions age magazine

News 2007 To return to the news list click here
Trustees under unnecessary pressure Trustees are being put under unnecessary pressure by the increasing number of companies failing to obtain clearance from The Pensions Regulator in the event of corporate activity, reports Trustee GAAPS, the pension fund trustee search and selection operation.	11/12/07
Property markets remain good value Global property markets are not heading for a "hard landing" next year and remain a good long-term proposition for pension fund trustees, according to property investors.	09/12/07
Funds still not being open about ESG Some of the UK's most substantial pension funds are continuing to ignore the importance of being transparent and accountable over environmental, social and governance (ESG) issues, putting the assets of over 3.9 million members at risk.	08/12/07
Pensions Bill to "transform savings culture in the UK" The government introduced its Pensions Bill 2007 to Parliament on 5 December, with Secretary of State for Work and Pensions Peter Hain lauding it as a set of reforms that would "help people to meet their aspirations for later life”.	05/12/07
Schemes hurt by move from government to corporate bonds Pension fund returns in the UK could have lost up to £500 million following the recent move from government bonds to corporate bonds, according to Hewitt Associates	03/12/07
PPF admits levy charge mistake The Pension Protection Fund (PPF) has admitted that it made a mistake regarding the levies on 41 companies, who will now face payments millions of pounds higher than expected.	30/11/07
OPT expects to command "fair share" of bulk buy-out market Robin Ellison, chairman of the board of trustees at the Occupational Pensions Trust (OPT), the umbrella group set up as an affordable and flexible alternative to the bulk buy-out insurance model for employers looking to transfer their pension schemes from their balance sheets, has told Pensions Age that he expects OPT to command a “fair share” of the market “if there is one at all” in a year’s time	29/11/07
Most scheme members not confident about making investment decisions Three quarters of scheme members do not feel confident about making investment decisions relating to their own pension and would rather put their future retirement income into the hands of a stranger, according to the third annual Alexander Forbes Financial Services (AFFS) Pensions Confidence Survey	28/11/07
Standard Life leading SIPP provider for IFAs Standard Life is leading the pack as the most popular SIPP provider with IFAs, according to a survey jointly undertaken by Masteq and CWC Research	27/11/07
Longevity estimates continue to rise New research has revealed that British men could live up to 12 years longer than previously predicted, costing as much as £160,368 per person, and placing significant strain on pension scheme funding	26/11/07
Future pension saving shortfall may widen Proposed amendments to pension legislation are unwise in light of today’s dependency on credit and may widen the future pension saving shortfall, according to David Seaton of Rowanmoor Pensions	23/11/07
Paternoster take on large Emap schemes Paternoster has bought out two of Emap’s largest defined benefit pension schemes with a combined value of assets approximately £170 million	16/11/07
Fund managers do not care for ESG Few fund managers have taken appropriate steps to address ESG (environmental, social and governance) issues as most investment houses simply do not take them seriously enough, according to FairPensions.	15/11/07
ECJ ruling could harm Heyday case A European Court of Justice (ECJ) ruling on a long-running Spanish case has found that although discrimination based on age is illegal, a mandatory retirement age can be justified to stabilise the labour market.	13/11/07
PADA accused of moving the goalposts Standard Life has accused the Government of allowing Paul Myners and the Personal Accounts Delivery Authority (PADA) to dictate the terms upon which personal pension and stakeholder schemes will be allowed to compete with Personal Accounts.	11/11/07
Telent buy-out deal remains on ice The proposed takeover of Telent has been delayed following The Takeover Panel’s decision to give Co-Investment No.5 LP Incorporated (CILP) another week in which to consider its offer.	09/11/07
Governance notably better post-Myners Pension scheme governance is continuing to improve and an increasing number of trustees are conforming to recommended guidance, according to the NAPF review of the 2001 Myners Principles.	09/11/07
Advisers welcome appointment of independent trustees on Telent scheme The Pensions Regulator’s decision to appoint three independent trustees to the Telent Pension Scheme has been welcomed by the scheme’s advisers.	30/10/07
IFAs opting for more qualifications Independent Financial Advisors are gaining incremental qualifications in a bid to win business from clients who recognise the importance of high quality service, according to Unbiased.co.uk.	29/10/07
Europe still a good place for property European property is still looking an attractive prospect for investors in spite of the recent turbulence in the US sub-prime markets, according to Invesco Real Estate	25/10/07
NAPF cautiously welcomes private equity review The National Association of Pension Funds (NAPF) has welcomed the review on the private sector industry produced by the Walker Working Group, but cautioned that its proposal for a “comply or explain” regime will only be effective if there is enough accountability within the private equity sector	23/10/07
Most investment houses shun ESG issues Few fund managers have taken appropriate steps to address ESG (environmental, social and governance) issues as most investment houses simply do not take them seriously enough, according to FairPensions	22/10/07
Funding deficits not as bad as feared The aggregate funding position of FTSE 350 companies in the UK is at 98 per cent with only a £9 billion deficit, in spite of the turbulence endured by financial markets over the last two months	19/10/07
Myners defends Personal Accounts Paul Myners, chairman of the Personal Accounts Delivery Authority, has defended the national scheme by saying it will have a “universal service mandate” that will not discriminate against any employer or eligible individual.	19/10/07
Avon Pension Fund to lead case against GlaxoSmithKline Avon Pension Fund has been appointed “lead plaintiff” in a US class-action case against the pharmaceutical giant GlaxoSmithKline (GSK), accused of misleading the market over a medically suspect diabetes pill called Avandia and consequently harming its share price.	11/10/07
Most view annuities as "legalised robbery" Consumers are completely disengaged with pensions and view compulsory annuitisation as “legalised robbery”, according to Malcolm Small, chairman of The Pensions Report.	09/10/07
Risk sharing schemes offer a lifeline to private sector pensions Adopting a risk-sharing blue print could radically rejuvenate the UK’s waning private sector pension system, according to the Association of Consulting Actuaries (ACA)	25/09/07
Forced contribution increases more damaging than 1997 tax raid Forcing final salary schemes to increase contributions in-line with inflation is more destructive to pensions than Gordon Brown’s notorious tax raid of 1997, according to Watson Wyatt.	24/09/07
Many pension funds still wary of the alternative route Pension funds remain wary of alternative investments, according to new research. In a paper published by Northern Trust entitled Why Diversification is Such a Hard Thing to Do, the firm reveals that institutional investors allocate, on average, only three per cent of their funds to alternative asset classes.	17/09/07
More turning their backs on annuities Retirement savings pots are at risk of rapidly running dry due to increasing longevity as a growing number of people avoid buying an annuity, says State Street Global Advisors (SSgA).	17/09/07
Regulator looks to gain more control The Pensions Regulator (TPR) has been accused of trying to “poke its nose” into corporate activity after revising its draft clearance guidance for consultation on corporate events such as mergers and acquisitions.	17/09/07
Calls for calm heads after weeks of market turmoil Market turmoil, the like of which has not been seen since the aftermath of 9/11, has hit the FTSE 100’s pension funds with an estimated deficit of £15 billion andleft trustees and fund managers extremely nervous about the coming months.	17/09/07
Traded life policies continue to gain investor favour Institutional investors are being encouraged to consider incorporating alternatives such as Traded Life Policies (TLP) into their portfolio, in the face of an unstable equity market and impaired bonds.	15/08/07
Brown told how to save DB schemes Gordon Brown has been urged to make some minor alterations to the legislation surrounding defined benefit pensions if he wants to salvage the pensions of millions of people in the UK.	15/08/07
Private equity wary of pension liabilities Pension liabilities are high on the list of reasons as to why private equity houses are not investing in struggling firms, according to Grant Thornton Corporate Finance's Private Equity Barometer survey.	15/08/07
UK throwing away billions of pension cash The UK is throwing away £2.7 billion of pension cash every year. Research from IFA Promotion Ltd has shown that £2 billion is wasted annually in unclaimed pensions credits by 2.24 million UK pensioners (according to ONS figures).	15/08/07
SIPP investors hurt by borrowing rule Pension investors could find themselves shackled to ill-fitting products and providers because of the restrictive SIPP borrowing rules introduced on A-Day, according to Hornbuckle Mitchell.	15/08/07
Automatic increase the way forward Retirement income could easily be boosted if annual employee pension scheme contributions were automatically increased by just one per cent for as little as five years, says Barrie & Hibbert.	15/08/07
Surplus joy likely to be short-lived The Lane Clark & Peacock (LCP) Accounting for Pensions 2007 survey confirmed a £12 billion surplus in the pension schemes of FTSE 100 pension schemes as at mid-July, but LCP warns that rising longevity and unstable equity markets may still leave funding positions in a precarious position.	14/08/07
Government rejects Pensions Bill amendment on women's state pension The Government has rejected the proposed amendment to the Pensions Bill which would have allowed women who do not qualify for the basic state pension, to top up their state benefits at retirement by increasing the time limit on the current purchase period for class 3 National Insurance contributions	18/07/07
ACA warns of 'under-pensioning' the young and middle aged Four out of five defined benefit pension schemes are now closed to new entrants and this growing trend is endangering the pensions of millions, according to the latest ACA survey.	18/07/07
Administrators set to be hit with unfair HMRC fines Pension scheme administrators could be wrongly hit with fines for late or incorrect tax return files due to the latest Government IT debacle over the introduction of mandatory e-filing of scheme tax return documentation	18/07/07
Too many pinning hopes on property for retirement income Too many people are unwisely relying upon equity release from their family home instead of a pension to fund their retirement, according to In Retirement Services	18/07/07
Britain on the way to retirement misery The breakdown of a savings culture in the UK and the country’s dependence on easy credit has left Britons “shopping their way towards retirement misery” according to F&C Investments	18/07/07
People bored senseless by pensions JLT Benefit Solutions has confirmed what most of us already knew or suspected – most people find pensions mind-numbingly boring and therefore do not pay enough attention to funding their retirement	18/07/07
Mattioli Woods continues with acquisition policy Mattioli Woods has bought out Leicester-based Pension Consulting Limited (PCL), signalling the gathering pace of consolidation within the personal pensions market	18/07/07
Interim report questions FAS strategy The Financial Assistance Scheme’s (FAS) current practices have been questioned by the Government’s Review into the operation	17/07/07
Administration complaints fall Complaints over the administration of occupational pension schemes have dropped by 12 per cent in the last financial year, according to The Pensions Advisory Service’s (TPAS) annual report.	16/07/07
Schemes struggling to recruit trustees Over one third of pension schemes are struggling to recruit trustees, but despite this, only one per cent of schemes financially compensate all of their trustees for the job they do	16/07/07
PPF publishes new Management and Business plans The Pension Protection Fund (PPF) has identified four major priorities for the forthcoming year in its new Business plan for 2007/8	31/05/07
£225 million worth of annual contributions not being claimed Almost 40 per cent of all defined contribution pension scheme members are failing to take advantage of the matching pension contributions offered by their employers, resulting in a total annual pension income loss of some £225 million	31/05/07
Xafinity unveils centre of pensions excellence Xafinity Paymaster has underlined its commitment to Britain’s heartland by unveiling its new “centre of pensions excellence” in Stafford	31/05/07
ISS joins the ethical bandwagon Institutional Shareholder Services (ISS), the corporate governance and proxy voting services provider, has introduced its new global Sustainability Risk Reports database, in response to the growing number of investors interested in ethical investment	30/05/07
PPF to leave investment strategies out of levy calculations The Pension Protection Fund (PPF) has confirmed that a pension scheme’s investment strategy will not be included as a separate risk factor in the risk-based levy for 2007/8	29/05/07
Hutton hypes up Personal Accounts Personal Accounts will be the biggest step forward for workers seeking to build up a pension since National Insurance was introduced in the 1940s, according to Secretary of State for Work and Pensions John Hutton.	25/05/07
Brown told to tackle pensions straight away The incoming Prime Minister, Gordon Brown, would be wise to tame the beast that is the UK’s pensions industry in his first 100 days in office, according to the NAPF’s chief executive Joanne Segars	25/05/07
Trustees need to avoid "reckless prudence" Trustees have been warned that they should avoid “reckless prudence” at all costs, by Alan Rubenstein from Lehman Brothers, at the recent NAPF conference in Manchester	25/05/07
Older people a great benefit to society The largest ever study of retirement has revealed that far from being a drain on society, older people are in fact a major economic and cultural asset, contributing over £59bn to the UK, during their 60s and 70s	22/05/07
SIPP success set to keep rolling into new financial year SIPP business has flourished for nearly two thirds of advisers since A-day last year, according to a survey published by Alliance Trust Savings	17/05/07
Private equity is top dog in alternative asset universe Private equity is the preferred alternative investment within the investment community, new research has found.	15/05/07
Aon attacks Brown over 1997 tax raid Britain's largest pension schemes would be £6bn in surplus and 40 per cent of the top 200 UK pension schemes would now have excess assets if Gordon Brown had left the Advanced Corporation Tax relief where it was in 1997.	14/05/07
Many face retirement with only half of current income Workers in the UK will have their incomes slashed in half as they enter retirement unless they make the necessary pension arrangements beforehand.	13/05/07
Savers and financial advisers need to take more risks Greater risk is the key to effective retirement planning and IFAs should be encouraging savers to adopt this strategy, says Lincoln Financial Group.	11/05/07
RSPA makes appeal for new blood The Raising Standards of Pensions Administration (RSPA) group has appealed for three new trustees to join its struggle to improve the quality of pension scheme administration.	04/05/07
Conservatives will try to reverse Brown’s 1997 “tax raid” The Conservatives will try to reverse the financial effect of Gordon Brown’s decision in 1997 to abolish tax relief on dividends paid into pension funds, should they come to power after the next General Election.	26/04/07
DC sponsors neglecting needs of members DC scheme sponsors are allowing their employees to sleepwalk into disastrous retirements due to a lack of engagement over their pensions	23/04/07
TUC demands answers from Boots and KKR The TUC has written to both the board of Boots and KKR, the private equity firm that is looking to buy out the pharmaceutical giant, demanding that they explain their plans for the Boots pension scheme	20/04/07
Railpen's Thompson joins UKSIF board Meagan Thompson, the corporate governance counsel at Railpen Investments, has become the first pensions representative on the board of directors of the UK Social Investment Forum (UKSIF)	20/04/07
Savvy investors warm to summer months The sultry summer months are more profitable for investors than the old adage, “sell in May and go away, come again on St. Leger Day” would lead us to believe, according to research by F&C Investments	19/04/07
Not such a good day Many independent financial advisers do not think the A-day reforms have delivered a better pensions system, and believe that the UK pensions “crisis” remains a real entity.	18/04/07
Marathon Club keeps running The Marathon Club has published a set of guidance notes which it hopes will help to encourage the financial community and pension fund trustees in particular, to adopt long-term investment strategies	19/04/07
Buyout market not expected to grow rapidly Few companies expect to eliminate their pension scheme liabilities in the short term irrespective of the number of dedicated buyout providers flooding the market, according to new research	18/04/07
Purnell defends Personal Accounts James Purnell, the Minister for Pensions Reform, has denied that the Government is mis-selling Personal Accounts to certain people while maintaining that the White Paper outlines the fairest national system for the majority of current non-savers	17/04/07
The real cost of alcohol The morning after the night before is costing the financial services sector a queasy £6.4bn a year in lost manpower following alcohol fuelled nights with colleagues and clients	17/04/07
Merger plans for PPF and Regulator questioned by industry Proposed plans to merge the PPF and the Pensions Regulator (TPR) or even both bodies with the FSA, have been met with strong criticism from most sections of the pensions industry	09/03/07
Confusion reigns supreme “Confusion” has been voted the most common word associated with pensions. The word was chosen as the winner of a poll to forecast the Pensions Buzzword of 2007 organised by ABN AMRO Asset Management	12/03/07
Boutiques set for market space battle Investment boutiques are likely to face much fiercer competition this year as numerous fund managers leave their existing companies to branch out on their own	09/03/07
Call for government to reduce NI payments for employers Origen has called for the government to reduce National Insurance payments for employers offering financial education in the workplace and the introduction of tax and benefit incentives to improve the savings culture in Britain	09/03/07
Investors told to steer clear of lifetime allowance Investors are being encouraged to steer clear of their pension’s lifetime allowance to avoid heavy tax penalties and missing out on contributions from their employer	12/03/07
Capital gains tax warning from threesixty IFA services provider threesixty has warned that high net individuals with designated accounts could be subject to capital gains tax (CGT) in addition to inheritance tax	12/03/07
Legality of auto-enrolment in certain schemes thrown into doubt The Government has been accused of complacency over the legality of automatically enrolling employees into their existing pension schemes, in light of the proposed introduction of Personal Accounts.	12/03/07
Make a Beeline for No.10 You’ve probably heard that Steve Bee of Scottish Life has set up a Proper Pensions Petition on the Number 10 website. If you’ve signed the petition, then kudos to you! If you haven’t then there’s still plenty of time to let the government know what you think of their plans for pensions reform	12/03/07
NAPF launches Myners review The NAPF has launched a new Myners Review on progress in complying with the principles and on their continuing relevance in today’s changed pensions environment. The industry body’s discussion paper, “Institutional Investment in the UK Six Years On” is the start of the consultation process. It is seeking the views of stakeholders and will lead to the completion of the review by October.	13/02/07
BA deficit plans to be grounded again? Opposition from the union representing ground crew at British Airways is threatening to scupper the airline’s plan for funding its £2.1bn pension deficit.	13/02/07
Metlife launches new guaranteed plans Financial services giant MetLife has launched its first two retirement products in the UK – a Self Invested Personal Pensions (SIPP) and Trustee Investment Plan (TIP).	13/02/07
Get ready for pensions headache Employers are set to endure more “pensions headache” with the government’s 2012 plans for auto-enrolment says law firm Hammonds.	12/02/07
Ethical fund tops UK market A screened or ethical fund has, for the first time, topped the UK All Companies sector with a return of 29.3 per cent for the year ending 31 January 2007.	12/02/07
New wrap entrants struggling to make impression A new market report has found that companies offering full service wrap propositions and new market entrants are finding it difficult to make inroads into the dominating position of fund supermarkets.	12/02/07
Balanced pooled funds achieve median return Balanced pooled funds achieved a median return of 4.9 per cent in the fourth quarter of 2006, resulting in an average return of 11 per cent for the year, according to Mellon Analytical Solutions (MAS).	12/02/07
Pension savers remain in dark A new survey by Alexander Forbes Financial Services has further highlighted the lack of financial education among pension savers, with 40 per cent unaware that they could take about a quarter of their accumulated pension fund in tax-free cash on retirement.	12/02/07
Royal Mail to close final salary scheme Royal Mail will close its final salary pension scheme to new members and fund its £6.6bn deficit over 17 years in a bid to curb spiralling pension fund servicing costs, which have reached £730m annually.	13/02/07
heywood wins Northern Irish public services contract Pensions software provider heywood has signed a contract for over £4m with the Northern Ireland Department of Health, Social Services and Public Safety (NI DHSSPS). The contract, for an initial seven year term, is the third Northern Ireland public sector pension scheme to be signed by the provider.	12/02/07
ECJ rules UK legislation inadequate The European Court of Justice (ECJ) has ruled that UK legislation designed to protect members of final salary pension schemes did not protect members as required by European law	25/01/07
Mandate round-up Invesco Perpetual has been selected by B&CE Benefit Schemes to manage a £70m UK equity mandate. The scheme was advised on the appointment by Hewitt Associates	19/01/07
Transfer values update clarifies way forward The DWP has published its long-awaited decision as to how pensions transfer values are to be calculated from April 2008.	18/01/07
Radical civil service pension reforms announced New entrants to the civil service will have to retire at 65 and accept a career average pension scheme, if the government's pension proposals for public workers, which were unveiled today, come to fruition	09/01/07
Scheme deficits fall, say industry figures Pension fund deficits in the UK fell by record levels in 2006 attributable to strong UK equity returns, rising bond yields and cash contributions	04/01/07
New year new REITs: opportunity but not panacea After years of lobbying the government to introduce a tax efficient onshore property vehicle to the UK, Real Estate Investment Trusts (REITs) finally made their debut on 1 January	04/01/07
Pension fund performance solid says WM Preliminary results for 2006 show UK pension funds had "solid, if not spectacular" average returns of 10%, with average annualised three-year return of 14%	03/01/07