We consider if bulk annuity purchases should be of interest to a wider group of schemes. Whilst there were 132 transactions in 2017, this is still small compared to the 5,700 UK DB pension schemes. Are these other 5,500 schemes missing a trick, or does bulk annuity purchase still only make sense in a small minority of cases?
The 2019 formal valuations for the English and Welsh funds in the Local Government Pension Scheme (LGPS) are fast approaching and preparation is key. As if there wasn’t enough to do already, the cost control mechanism has been triggered.
The key financial assumptions required for determining pension liabilities under the Accounting Standards FRS102 (UK non-listed), IAS19 (EU listed) and ASC715 (US listed) are the discount rate and the rate of future inflation.
On 12 December 2018, the Competition and Markets Authority (CMA) published its final report in relation to its review of the market for investment consulting and fiduciary management services.
Our 95th edition of PATHways highlights pensions news and legislation that has particular relevance to what we do in pension administration.
In contrast to the purchase of a lifetime annuity, placing your accrued pension fund into drawdown is not a ‘once and done’ exercise.
TPR carried out research which identified that many schemes were not being run to the standard expected by TPR. On the back of these findings TPR initiated an education program which was given the name of “21st Century Trusteeship”.
Pension consolidation is a broad concept, ranging from simplifying a scheme’s governance structure, to merging with other schemes to take advantage of economies of scale.
Despite the trend to move away from DB in favour of more flexible DC arrangements, employers wanting to maximise provision of benefits for employees without breaching the Annual Allowance and Lifetime Allowance limits may find a DB SSAS suits their needs.