Most private sector pensions accrual in the UK is now on a DC basis. When legislators think about DB, it is only to worry about protecting past service benefits; never to wonder about whether the framework for future benefits is fit for purpose.
On Friday 17 November, Universities UK (UUK) said that they want all staff in the Universities Superannuation Scheme (USS) to earn only defined contribution (DC) benefits going forward. Paul Hamilton shares his expertise on the matter.
It seems like the 2014 actuarial valuation of the USS has only just finished. The increasing deficit led to lengthy negotiations/consultations with HE Institutions and Trade Unions, and resulted in changes to the benefits for employees.
VIDEO: We asked a number of delegates at the 2014 NAPF conference for their views on how they are seeing technology benefit pension schemes.
VIDEO: Paul Hamilton highlights how we use technology for the benefit of our pension scheme clients in our latest video.
The PPF have recently announced their intention to adopt a bespoke model for assessing insolvency risk in the 2015/16 levy calculation and beyond.
Once a scheme has no more active members, we call it a winding down scheme. The benefits for all members are known, albeit they may be subject to unknown future price inflation, and we don't know how long they will be paid for.
Pension schemes which have been closed to new members or to new benefit accrual bring many challenges for their trustees. In particular many closed schemes may expect to run off over a long period of time and need a cost-effective advisory service during this period that will minimise management expenses.