Pensions Wire

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  • January 18
    Next up – Barclays
    Readers of The Times will have seen the article on Monday questioning the decision by Barclays to assign their pension scheme to the non ring-fenced part of their business as part of the restructuring they are carrying out to comply with new legislation.  Today it is reported that the chair of the Work and Pensions Committee, the Rt Hon Frank Field is also raising questions surrounding the move d... Read More
  • January 17
    GKN Trustees try to put Melrose (back in their) Place
    ​Yesterday the Trustees of the GKN Group pension schemes took the unusual approach of issuing a press release highlighting the potential impact on their pension schemes of a hostile takeover of GKN plc, a multinational automotive and aerospace components company, by Melrose plc, a turnaround company focusing on the manufacturing sector. Their aim seemed to be to highlight that, if the hostile tak... Read More
  • January 16
    A Frank rebuke for the Rt Hon Mr Field
    ​The chair of the Work and Pensions Committee, the Rt Hon Frank Field has renewed his calls for pension reform and criticised the Government for further delaying its white paper on defined benefit security and sustainability.  This comes after pensions and financial inclusion minister, Guy Opperman, said in parliament last Thursday that "The white paper will be delivered at some stage this s... Read More
  • January 15
    Carillion collapse causes covenant catastrophe
    ​This morning’s news of Carillion’s liquidation adds yet more high profile names to the list of pension schemes which have been unable to meet their objective of providing full benefits to their members. Carillion’s 13 UK DB pension schemes will now enter assessment for entry to the Pension Protection Fund (the ‘PPF’), the lifeboat fund offering compensation to members of DB schemes whose e... Read More
  • December 19
    Regulator under stress
    ​Last week, EIOPA published the results of their 2nd EU-wide stress test. As part of the stress test exercise, EIOPA ask National Supervisory Authorities (“NSAs” – the Pensions Regulator in the UK) to collate information from pension schemes on how they would be affected by an “adverse market scenario” (effectively a significant fall in asset prices alongside a fall in risk-free interest rates). ... Read More
  • December 14
    Season’s greetings in the 2017 Purple Book?
    The publishing of the Pension Protection Fund’s Purple book is one of the highlights of my year and 2017 is no exception with some gems tucked away on insolvency.  In particular, the average insolvency rate of PPF eligible schemes’ sponsoring companies has fallen from 0.8% in 2006 to 0.3% in 2017.  This is based on the four quarter moving average of total historic insolvency events i.e. is based ... Read More
  • November 27
    A graphic insight into EU pension liabilities
    Rarely a day goes by without more news stories detailing how the UK’s Brexit talks with the EU are floundering. The problem surrounds the “Brexit bill” – what does the UK owe money towards and how much money does it owe? Reports in the press suggest that one of the most expensive, and therefore contentious, issues being discussed is pensions. This blog gives you a graphic insight into the basics ... Read More
  • November 22
    Who said annuities were dead?
    ​Just when you thought there was no way back for annuities with the boom in pension pot cash-ins (“Annuity sales continue to plunge”,  BBC News, see here), and that young people would never be interested in pensions ever again (“Worrying lack of understanding of workplace pensions found among millennials”, The Actuary, see here), the National Lottery operator Camelot is riding in to the rescue wi... Read More