Trustees Agenda
Welcome to the BBS Trustees Agenda, our headline service for pension scheme trustees, employers and fellow professionals.
Important: The articles contained within this database summarise BBS's understanding of the topics at the time entered. They are not intended to be a statement of law and should not be relied upon as such.
DWP revises statement on new AE timetable
Posted on Jan 31, 2012
The DWP has issued a revision to its earlier statement announcing a new timetable for auto-enrolment.
The revision clarifies the modelling assumptions made in the earlier statement that 70% of eligible workers will be automatically enrolled by the end of the current Parliament compared with around 75% under previous arrangements.
The figures are now to be read as 55% and 65% respectively.
Regulator issues FSD against ITV
Posted on Jan 27, 2012
The Pensions Regulator has issued a financial support direction (FSD) requiring ITV to provide support for the Box Clever Group Pension Scheme, which has a deficit of £62 million.
This is only the fourth time the Regulator has used its FSD powers.
ITV has lodged an appeal against the decision, commenting that "ITV has never participated in the Box Clever Scheme and has had no control over the growth of its deficit."
Employer debt regulations finalised
Posted on Jan 27, 2012
Amendments to the Employer Debt Regulations have now come into force, introducing a new arrangement for managing employer debts called a flexible apportionment arrangement (FAA), and building in some additional flexibility to the "period of grace" provisions.
Despite industry lobbying, however, the new regulations are not particularly far reaching and do not "fix" the material issues with the employer debt regime.
Financial Services Bill unveiled
Posted on Jan 27, 2012
Chancellor George Osborne has revealed details of the Financial Services Bill which will overhaul the regulation of the sector. The bill will create three new bodies within the Bank of England to regulate financial services, as follows:
* The Financial Policy Committee (FPC) will have overall responsibility for financial regulation and monitoring the risks of the financial services sector to the economy. This body will oversee two new financial watchdogs:
* The Prudent Regulation Authority (PRA), which will take over responsibility for supervising the safety and soundness of individual financial firms, and
* The Financial Conduct Authority (FCA), which will protect consumers and ensure workers in the financial sector comply with the rules.
Industry comments on new AE timetable
Posted on Jan 25, 2012
Response to the DWP's new timetable for the implementation of auto-enrolment has been mixed.
Brendan Barber, TUC General Secretary, said "This is a deeply disappointing delay... Today's announcement does not just hit the staff of small employers. What's worse is that even workers auto-enrolled last year will now have to wait until the end of the staging process before they get their full contribution."
However, NAPF Chief Executive Joanne Segars has welcomed the introduction of a new timetable. She said "This will provide the clarity that businesses need to get on with preparing for these important changes."
Government to consider lifting NEST restrictions
Posted on Jan 24, 2012
Pensions Minister Steve Webb has said that he would consider lifting the statutory restrictions on NEST.
Current legislation does not permit transfers in or out of NEST, and limits annual contributions to a maximum of £4,200.
He also stated that the Government would be "absolutely prepared" to impose a cap on private pension fund management charges if they hinder savings.
Friends Life launches 'hub'.
Posted on Jan 23, 2012
Friends Life has launched a 'hub', which uses payroll data to check clients' ongoing compliance with the auto-enrolment regulations.
Corporate benefits director, Colin Williams, commented that "Making auto-enrolment work will require employers to review their employee base for eligibility and contribution levels at every pay date."
Charities granted extentions on deficit repayment plans
Posted on Jan 23, 2012
Hundreds of charities and quasi-public sector organisations have been saved by extensions of up to 30 years to their deficit repayment plans.
The amounts non-council organisations in the LGPS must pay into the plan have increased sharply due to investment underperformance of 10% over the past decade, and increased longevity projections. This increased debt, which must be paid within a finite period, has put around 300 organisations at risk of bankruptcy.
However, negotiations between such organisations, the LGPS, trustees and actuaries has resulted in an extension to the repayment periods for many.
Barry McKay, actuary at Hymans Robertson, claimed the LGPS was willing to renegotiate repayment periods for charities in particular.
Gilt yeilds hit record low
Posted on Jan 23, 2012
15-year gilt yields have reached a record low of 2.25%, which will lead to a lower income for people retiring now, and will also impact those considering the use of income withdrawal or annuities to provide retirement income.
UK DB scheme deficit in excess of £400bn
Posted on Jan 23, 2012
According to estimates by Broadstone Pensions and Investments, the total deficit of all UK defined benefit schemes is now over £400bn.
