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09 March 2010
£400 billion of FTSE 350 shareholder value at risk from un-hedged pension liabilities
Research released from Hymans Robertson has found that significant risks remain un-hedged in the pension schemes of FTSE 350 companies, even in those where the pension scheme is not a significant burden for the sponsoring company. From a shareholder perspective, many of these risks are unrewarded. Looking at the FTSE 350 as a whole, most companies remain well equipped to deal with their pension liabilities with half of the companies in the index having a pension deficit* of less than 6p in the pound of market capitalisation.
Hymans Robertson

08 March 2010
Aon Global Survey on Pension Risk Management
Results show that 58 percent of respondents claim interest rates as the biggest issue facing Defined Benefit (DB) pension plan sponsors between now and 2013, followed by longevity risk (21 percent), equity markets (15 percent) and inflation (6 percent).
Aon Consulting

08 March 2010
Doubts remain over pension accounting assumptions
While falling corporate bond yields in 2009 played a role in rising deficits, low inflation has been crucial in keeping pension liabilities high. Questions are now being asked about whether the accounting rules used to assess these liabilities are adequate.

08 March 2010
International Accounting Standards proposals could change attitudes to pension plan investments
Proposed changes to international accounting standards (IAS 19), due for consultation shortly, could encourage lower risk investment strategies, according to Mercer.
Mercer

08 March 2010
Only One In Three Confident in Pension Income
Only a third (34%) of working people believe that their pension will give them enough money in retirement according to new research from the National Association of Pension Funds
National Association of Pension Funds (NAPF)

08 March 2010
Plymouth City Council pension fund is £331million short
TAXPAYERS in Plymouth could be forced to pick up the bill for a massive £331million black hole in the generous council workers' pension fund.
Plymouth City Council

08 March 2010
PPF Issues Guidance on Onerous Contracts
The Pension Protection Fund (PPF) has issued guidance for trustees and counterparties on the Board’s power to modify and disclaim onerous contracts under section 161 and Schedule 6 of the Pensions Act 2004.
Pension Protection Fund (PPF)

08 March 2010
RBS pensions sting taxpayer
The Royal Bank of Scotland’s gold-plated pension scheme will require a big cash injection at the expense of the taxpayer after it is revalued at the end of this month.
Royal Bank of Scotland (RBS)

08 March 2010
Spotlight on six UK pension schemes – and their strategies for managing risk
Commerzbank UK Pension Fund; Aviva Staff Pensions Scheme; Babcock International Pension Fund; Blackwell’s Pension Fund; Royal County of Berkshire Pension Fund; London Pensions Fund Authority

08 March 2010
Switzerland rejects pension cuts in referendum
The Swiss voted against a second pillar pension benefits cut introduced in 2008 in a national referendum.

08 March 2010
[USA] Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash
The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system
Federal Deposit Insurance Corporation (FDIC)

05 March 2010
[Ireland] Workers face three-year wait after retiring for State pension
WORKERS FACE the prospect of spending up to three years in retirement without the State pension under the National Pension Framework unveiled by the Government. The framework announced plans to abolish the State Pension (Transition) paid to retiring workers in 2014. That will leave retired employees without State pension support until the Contributory State Pension kicks in at 66.

05 March 2010
More quantitative easing could rock the boat for pension deficits
"“The perverse impact of quantitative easing is that while it should help the economy as a whole to recover, it also increases final salary pension scheme deficits, thereby putting additional pressure on the very companies it is trying to help. The government is competing with pension funds for buying up valuable gilts and this therefore pushes up the price of gilts. This rising price inflates pension scheme liabilities and so magnifies the deficit."
Aon Consulting

05 March 2010
Pension tax changes are severely flawed and should be withdrawn
The Government’s pensions tax relief reforms for those on higher incomes are ill thought out, complex, costly to implement and will damage the pension prospects for those on middle and low incomes.
Association of Consulting Actuaries (ACA)

05 March 2010
Scots council chiefs deny pension fund problems
Scottish council chiefs denied pension funds covering local authority workers across the north and north-east were in difficulty despite deficits claimed to total more than £1.2billion.

05 March 2010
TUPE and pensions - note from the House of Commons Library
This note covers the development of measures to protect occupational pensions on transfer of employment
House of Commons

04 March 2010
Kraft: Cadbury staff must double pension contributions to plug deficit
Cadbury’s staff will have to double their pension contributions to plug the £215 million deficit in the chocolate maker’s UK pension scheme. Pension scheme trustees have been seeking assurances from Kraft, prior to its £11 billion takeover of the Midlands-based chocolate giant, that it would protect Cadbury staff pensions. Kraft plans to end pension accruals for its US salaried and non-union hourly employees from 31 December 2019.
Cadbury; Kraft

04 March 2010
Pensions apartheid: How women are missing out by being born on the wrong date
As many as 110,000 women retiring this year could lose more than £20,000 of state pension over their remaining years simply because they were born on the wrong date. Women who turn 60 before April 6 this year will qualify for only three-quarters of the state pension - around £75 a week - if they have worked for less than 39 years.

04 March 2010
Rise in people retiring early
The number of people retiring has risen by more than 20 per cent ahead of the forthcoming increase in the minimum age at which workers can start drawing their pension, according to a new study by Aon Consulting.
Aon Consulting

03 March 2010
'50% of Scots have no pension plan'
Half of Scots approaching pensionable age have done nothing to plan for their retirement, according to a survey. Only a quarter (25%) of the over-50s questioned in a poll have checked how much state pension they will get. More than a third (34%) approaching retirement say they haven't discussed their plans with their partner.
Ipsos MORI

02 March 2010
PADA announces intention to sign contract for scheme administration services
"PADA is pleased to confirm that Tata Consultancy Services (TCS) has been named as the successful bidder for NEST scheme administration services. PADA intends to sign a contract with TCS later this month. The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer NEST. Prior to the expiry of the first stage, a decision will be made on whether to proceed with the contract for the remainder of the contract term."
Tata Consultancy Services (TCS); Personal Accounts Delivery Authority (PADA); National Employment Savings Trust (NEST)

22 February 2010
Charities face £1bn pensions crisis
Fresh concerns have been raised about the funding of charity pension schemes, after a YMCA in Wales was threatened with insolvency.
YMCA

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