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.
Consolidated Pension Statements
Posted on Feb 28, 2001
Consolidated Pension Statements get off the ground with a pilot study underway. The objective is to enable an individual to be able to see all their pension benefits on one statement - personal, state and occupational. The statements will also be required to show projected benefits at retirement date.
Individual Pension Accounts
Posted on Feb 28, 2001
Individual Pension Accounts are to go live from 1 April 2001 - but the final regulations still don't deal with Stamp Duty Reserve Tax and few providers will meet the launch deadline.
New contracting-out rebates
Posted on Feb 28, 2001
The new contacting out rebates have been set too low and will not justify a decision to contract out, creating the opposite of the government's desire (advises the Society of Pension Consultants and the Joint Working Group).
End of the line for Equitable Life?
Posted on Feb 28, 2001
The insurer has agreed to a purchase by the Halifax for up to 1bn. 500m purchases the investment management, administration and sales arms now with a further 250m going to the guaranteed annuity policy holders if they agree a liability capping deal. The final 250m is related to the achievement of sales targets to 2004.
Terms for transfer from the Equitable include penalties and specific advice should be sought.
Investment Matters
Posted on Feb 28, 2001
Market consolidation continues with the merger of Invesco and Perpetual's defined contribution businesses. Pan European insurer Eureko has bought London based manager Foreign & Colonial and JP Morgan Chase is the product of the coming together of Fleming, Chase Manhattan and JP Morgan.
The year 2000 has been billed as the year of the active value manager and has seen the average pension fund exceed the return on the FTSE All share Index by 1.5%.
AXA UK has gained High Court approval to its plans to repatriate its orphan assets of 1.7bn. 525m goes to policyholders.
New "Multi-Tie" Rules and caveat emptor
Posted on Feb 28, 2001
Under current "polarisation rules" to sell a pension product you either have to be independent (e.g. an IFA) or a tied salesperson (e.g. member of an insurance company's sales force). The salesperson has to disclose the capacity in which he acts.
It is now proposed that "multi ties" should be allowed removing this distinction. This change will be in place for the sale of Stakeholder pensions and so called "white labeling" will enable the sale of other providers' products, but "badged" as the salesperson own product.
The changes are being introduced to bring clarity to the market place!
Govt Actuary - 10th survey of Pension Schemes
Posted on Feb 28, 2001
Industry trends continue to be away from final salary to money purchase provision and away from occupational schemes to insured group personal pension and stakeholder friendly arrangements.
The 10th Government Actuary's Survey of Occupational Schemes shows the lowest membership levels since 1956 and in a DSS Survey we learn that 70% of today's pensioners have to rely on state pensions having no other provision.
Another Survey "UK Executive Pension Provision 2000" has revealed that two thirds of employers have ditched final salary promises for executives earning over the "Earnings Cap". The results also show that the cap affects almost 50% of executives and that 20% of companies do not pension excess earnings.
AMP v Barker & Others
Posted on Feb 28, 2001
The case involved mistakes made in the Scheme's documentation that conferred unintended benefits on early leavers.
In the specific circumstances of the case it has been decided that rectification of the mistake is acceptable. A byproduct of the case is that where accrued rights are mistakenly created no S67 Certificate is required from the scheme actuary.
OPRA Fine - Kyam Pension Scheme
Posted on Feb 28, 2001
Three Kayam Pension Scheme Trustees were fined and ordered to pay 100k compensation for making illegal loans form the Fund. OPRA is using its powers effectively but is itself to be investigated for its handling of another case!
Pension Scheme Surplus Cases
Posted on Feb 28, 2001
The House of Lords is hearing an appeal in relation to use of the National Grid surplus estimated at c2bn. and the judgment over the use of surplus in the Airways Pension Scheme case is also due this month.
In the Barclays case it has been established that surplus in a Defined Benefit section can be used to defray employer contributions to the Defined Contribution section of the same scheme.
