Work and Pensions Committee. Inquiry into Collective Defined Contribution Pension Schemes. Response from The Pensions Management Institute
|
|
- Leslie Garry Stevenson
- 5 years ago
- Views:
Transcription
1 Work and Pensions Committee Inquiry into Collective Defined Contribution Pension Schemes Response from The Pensions Management Institute
2 - 2 - Response from the Pensions Management Institute to Work and Pensions Committee Inquiry into Collective Defined Contribution Schemes Introduction PMI is the professional body which supports and develops those who work in the pensions industry. PMI offers a range of qualifications designed to meet the requirements of those who manage workplace pension schemes or who provide professional services to them. Our members (currently some 6,000) include pensions managers, lawyers, actuaries, consultants, administrators and others. Their experience is therefore wide ranging and has contributed to the thinking expressed in this response. Due to the wide range of professional disciplines represented, our members represent a cross-section of the pensions industry as a whole. PMI is focused on supporting its members to enable them to perform their jobs to the highest professional standards, and thereby benefit members of retirement benefit arrangements for which they are responsible. In preparing our response to this Inquiry, we decided to consult our members. As noted above, our membership represents a cross-section of the pensions industry as a whole, and we believe that their collective insight would provide a particularly effective insight into the views of all professions working within the occupational pensions sector. With this in mind, we prepared a survey for our members. Given time constraints, we were only able to run this between 27 November 2017 and 19 December 2017, but during this period, we received 98 responses. These have formed the basis of our response as set out below.
3 - 3 - Benefits to savers and the wider economy Would CDC deliver tangible benefits to savers compared with other models? The view of our members (see survey results below) was that overall CDC schemes would be a beneficial introduction in the UK. We note that in other countries most notably the Netherlands the provision of benefits in the form of a scheme pension results in greater consistency in the value of retirement benefits as members are less vulnerable to the influence of market conditions at the point of decumulation. Crucially, we are aware of research conducted by Aon which suggests that retirement benefits from Dutch CDC schemes are higher than those enjoyed by British retirees from conventional DC arrangements. CDC is able to take a long-term investment strategy that avoids completely the rigid accumulation / de-risking / decumulation cycle of conventional DC. Another attractive characteristic is that CDC achieves a more equitable degree of risk-sharing between the scheme sponsor and membership; something that has never been possible either with conventional DC or Defined Benefit (DB) arrangements. CDC also offers the possibility of a seamless auto-enrolment vehicle. A series of defaults would apply to each phase of membership: enrolment, investment strategy and ultimate decumulation could all be managed effectively without requiring any form of active intervention by the member. However, our members also expressed concerns about CDC. The strongest criticism stemmed from the inter-generational cross-subsidies associated with this type of scheme design. Members were concerned that the contributions of younger members are used to provide benefits for retirees rather than secure deferred benefits for younger members. This in turn leads to another concern: that this type of scheme is susceptible to funding strains in a manner comparable with DB arrangements. Some have even compared the funding characteristics of CDC schemes with With Profits funds. Our survey asked: To what extent would the introduction of CDC schemes improve the standard of workplace pension provision? Responses were as follows: Count percentage A significant improvement 15 16% A moderate improvement 37 38% No change 28 29% Mildly detrimental 11 11% Extremely detrimental 6 6%
4 - 4 - It should be noted that over half believed that the introduction of CDC schemes would see an improvement in the standard of workplace pension provision. Comments from respondents included the following: Individual members bear less of the investment risk, employer not exposed to the open-ended risk of DB - feels like a happy middle ground. For those employers who want to sit between DB and DC it offers another option that can only enhance the outcomes for their employees if they feel that DB is a step too far We also asked: What do you see as the major advantages of CDC schemes? Responses were as follows: Count percentage Higher pensioner incomes 35 36% Members free of investment decisions 42 43% Members largely unaffected by costs and charges 30 31% Trustees not constrained by having to use unitised funds 19 19% Other 9 9% 28 respondents (29%) saw no specific advantages arising from CDC schemes. We also asked: What do you see as the major disadvantages of CDC schemes? Responses were as follows: Count percentage Intergenerational cross-subsidies 46 47% Loss of member choice over investment strategy 32 33% Schemes vulnerable to funding problems in the manner of DB 52 53% schemes CDC schemes have to be very large 43 44% Members may not understand them 64 65% Benefits are not guaranteed 48 49% Other 11 11%
5 - 5 - One respondent was concerned by perceived similarities between CDC schemes and With Profits funds. 7 (7%) respondents saw no major disadvantages associated with CDC schemes.
6 - 6 - How would a continental-style collective approach work alongside individual freedom and choice? By default, CDC schemes pay benefits in the form of a scheme pension. Existing statutory provisions would require this benefit to comply with certain requirements, such as: Limited Price Indexation increases in payment Provision of a dependant s pension The option of commuting part of the starting rate of pension to a lump sum We understand that the Pensions Act 2015 would permit benefits in payment from a CDC scheme to be reduced, although given the various proposed scheme design options for CDC arrangements greater legal clarity would be beneficial. There would also have to be a credible mechanism for calculating a member s notional share of fund. This would be necessary for calculating compliance with the Lifetime Allowance (LTA), calculating retirement benefits and calculating transfer values. One CDC design achieves this by awarding points to members based on the monetary value of contributions received. These points allow for investment returns achieved between the date of contribution and the ultimate date of calculation. The system can be seen as being broadly comparable to a Nectar card. It is of course possible that some members will opt not for the guarantees provided by a scheme pension and will prefer to exercise the options made possible by the Freedom and Choice reforms introduced in Our view is that if CDC schemes were to pay transfer values in the manner currently required of registered schemes, this would be perfectly possible. Our survey asked: The inquiry seeks to know if CDC schemes are compatible with the existing Freedom & Choice agenda. Assuming the CDC schemes are able to pay transfer values, do you believe this would be a problem? Responses were as follows: Count percentage It would not be a problem 48 50% It would be a minor problem 38 39% It would be a major problem 11 11% Comments from respondents included the following:
7 - 7 - Few schemes currently provide full freedom and choice options themselves, requiring members to transfer out to access them. So CDC schemes would be no different. partial transfers should also be allowed Any perceived problems at the scheme could generate a run, and given the popularity of "Pension Freedom" many will want to cash in their savings at retirement. This doesn't support long term investment and could create issues similar to those which affected With Profits, and I can't see the Government permitting any form of Market Value Adjustment to protect remaining members.
8 - 8 - Does this risk creating extra complexity and confusion? Would savers understand and trust the income ambition offered by CDC? Historically, the pensions industry has been unrealistic about the extent to which members can become engaged with pension saving. Arguably, during an era when DB provision was dominant, this was of limited significance: the value of befits was determined in advance by scheme, and members were not required to make investment decisions. The historic failure to achieve effective member engagement in the era of conventional DC has been addressed in other ways. Auto-enrolment works through harnessing inertia. Members do not have to give explicit consent in order to join a workplace pension scheme, and the design of default funds acknowledge that the vast majority of members choose not to self-select funds. It is unlikely that members of CDC schemes would understand the design of their scheme any better than do members of existing arrangements. Our third survey question indicates that 65% of respondents believed that members would not understand CDC. However, the lesson of auto-enrolment is that this need not in itself be a barrier to success. Effective governance is more important than high levels of member engagement. This would be as true of CDC as it is of any other scheme design.
9 - 9 - Converting DB Schemes to CDC Could seriously underfunded DB pension schemes be resolved by changing their pension contract to CDC, along Dutch lines? How would this be regulated and how would the loss of DB pension promises to scheme members be addressed? We were somewhat perplexed by this question. Most DB schemes including those with serious funding problems are closed to new entrants. As a constant flow of new entrants is important to maintain a CDC scheme s funding, converting a closed scheme to CDC would not be an obvious course of action. There would also be legal complications: a Regulated Apportionment Arrangement (RAA) compares benefits to be provided from a replacement scheme with those payable via the Pension Protection Fund (PPF). This would not be applicable in the case of a CDC scheme unless the RAA concept were to be significantly redefined to accommodate the characteristics of a CDC scheme. We asked our members: The inquiry asks if underfunded DB schemes might be converted to CDC arrangements. Were this to be permitted - by means of a modified form of Regulated Apportionment Arrangement (RAA), for example how beneficial for members of stressed schemes would this be? Responses were as follows: Count percentage Very beneficial 5 5% Quite beneficial 31 33% No impact 5 5% Potentially detrimental 32 35% Potentially very detrimental 21 22% Comments included the following: Likely to be detrimental but it would depend on the terms of the payment to the CDC scheme. Presumably, transfer values would be reduced due to underfunding and members are moving to a non-guarantee environment. If so, it does not look great for the transferring employees. How would this interact with the PPF? Would you be better falling into the PPF and getting a fixed level of benefit rather than relying on someone's best guess on investment strategy and benefit apportionment? Don't allow CDC to be used as mechanism for employers to avoid their funding obligations. I do not see this as an advantage over the PPF.
10 We did however consider how CDC schemes might be established in the UK. We asked: Given that CDC schemes are commonly very large in order to achieve effective economies of scale, how might schemes be established? Responses were as follows: Count percentage Converting the LGPS to CDC 23 23% Converting NEST to CDC 49 50% Converting other existing Master Trusts to CDC 46 47% Creating new industry-wide or regionally-based schemes 58 59% Stand-alone schemes for vey large employers 34 35% 18 respondents (18%) did not consider the creation of new CDC schemes a viable option. Comments included the following: There should be a wide range of possibilities for how CDC schemes could be established. CDC if introduced seems a more natural fit with Master Trust schemes, some of which were industry based anyway or larger employers. The biggest flaw in CDC is it is based on three myths. Firstly, that size of aggregate funds managed guarantees economies of scale, secondly that lower investment charges has a material effect on price, and thirdly that larger schemes charge a lower price for DC. If the lowest achievable investment charges are 0.03% for a large master trust and 0.08% for a small master trust, then on a fund of 1,000 the effect of using a large scheme is to achieve a saving of 0.50p per annum per member, yet the two schemes both might still charge the same 0.50% AMC. Economies of scale can only operate to reduce price in a market which does not have a price cap, and in particular a price cap below the cost of production. By far the greater costs of DC are incurred in third party administration charges and communication costs, which for the largest schemes will amount to at least 30 pa (NEST s are 40+) and the 0.50p saving equates to 1.6% of total costs. If NEST were transferred to a CDC who would meet the administration costs? The elephant in the room which the authorities have not yet noticed is that firstly, the regulatory pricing cap imposed on the pensions market is set below the costs to serve auto enrolment business. It means the market is not sustainable. Secondly, the administration and management costs of a traditional workplace pension are borne by the employer with only investment manger costs being borne by employees. Yet the market has been forced to follow the pre RDR insurance company Personal Pension headline AMC charge, a loss leader chasing market share offering no governance, and only covering marketing and investment costs. It should be evident that NEST s 0.50% charging basis,
11 carried over to a CDC, means a loss of over 100 pa for each member pa will need to be picked up by the sponsoring employers of the CDC. Record keeping and communication costs are not lower because the fund has sizeable assets, and scale is not material. Alternatively the authorities might realise that a charge cap should only apply to investment charges, the only cost that is priced as a % of FUM and the market should determine the price and quality of ancillary services.
12 Regulation, governance and industry issues How would CDCs be regulated? If CDC were to be implemented in the UK, it seems logical that existing arrangements be converted to this design of scheme. The Pensions Regulator has made no secret of the fact that it believes that there are too many Master Trusts in this sector which will never become big enough to be viable over the longer term, and that extensive consolidation is inevitable. The creation of large schemes would lend itself very naturally to the establishment of CDC schemes. We envisage that CDCs would be subject to a regulatory structure comparable to that which currently applies to Master Trust arrangements. A specific regulatory culture has evolved that applicable to Master Trusts, and we imagine that comparable approach would be developed for CDC schemes.
13 Is there appetite among employers and the UK pension industry to deliver CDC? Ultimately, whether CDC would work in the UK would be subject to political will. Proponents focus on the success of the model in other countries and argue that the system combines the more desirable characteristics of traditional DB and DC arrangements. Opponents are concerned about aspects of inter-generational risk sharing in particular. Government must take care in assessing evidence and distinguish properly between genuinely informed comment and simple vested commercial interest. We asked our members Do you believe there would be a desire amongst employers to see the introduction of CDC schemes in the UK? The responses were as follows: Count percentage No there is no appetite for CDC 45 47% Yes as a long-term replacement for other scheme designs 28 30% Yes in addition to existing scheme designs 22 23% Comments included the following: Possibly, but more likely as an employer affordability decision to move away from DB and/or convert underfunded DB schemes to CDC. Could be useful as an auto-enrolment vehicle where members not interested in making investment decisions. Employers are already struggling with AE more changes would be frustrating. Potentially yes. I think immediate concerns are affordability of employer contributions and employee understanding. I don't think they are wanting further change at this point. Yes, but I'm dubious about the numbers of employers who'd take it up.
14 Would CDC funds have a clearer view towards investing for the long term? As has been noted earlier, CDC schemes are not subject to the same constraints as conventional DC schemes. Unitised funds need not form the basis of scheme assets, and there is scope for investing in a wide range of assets more commonly associated with larger DB schemes. The traditional investment strategy associated with conventional DC, is which there are separate phases for accumulation, de-risking and ultimate decumulation are no longer necessary, which allows the scheme as a whole to invest more heavily in growth assets. CDC schemes are in our view are far better positioned for adopting a long-term investment strategy than is the case for a conventional DC arrangement. ***** ***** *****
National Employment Savings Trust The future of retirement. Response from The Pensions Management Institute
National Employment Savings Trust The future of retirement Response from The Pensions Management Institute - 2 - Response from the Pensions Management Institute to NEST s Consultation The future of retirement
More informationRE: The future of retirement A Consultation on investing for NEST s members in a new regulatory landscape
National Employment Savings Trust Riverside House 2A Southwark Bridge Road London SE1 9HA 2 February 2015 Submitted via email to: nestresponses@nestcorporation.org.uk RE: The future of retirement A Consultation
More informationCollective defined contribution pension schemes inquiry Response from the Pensions Policy Institute
Collective defined contribution pension schemes inquiry Response from the Pensions Policy Institute Summary In 2014 the were commissioned by the DWP to construct a model to attempt to replicate the Aon
More informationDepartment for Work and Pensions. Offering a default option for defined contribution automatic enrolment pension schemes public consultation
Department for Work and Pensions Offering a default option for defined contribution automatic enrolment pension schemes public consultation Response from The Pensions Management Institute - 2 - Consultation
More informationAndrew Vaughan Chair, Defined Ambition Industry Working Group and Chair, International Association of Consulting Actuaries
w w w. I C A 2 0 1 4. o r g Defined Ambition A successful synthesis between defined benefit and defined contribution A summary of the DWP consultation paper Reshaping workplace pensions for future generations
More informationPension Schemes Bill Impact Assessment. Summary of Impacts
Pension Schemes Bill Impact Assessment Summary of Impacts June 2014 Contents 1 Introduction... 3 Background... 4 Categories of Pension Scheme... 4 General Changes to Pensions Legislation... 4 Collective
More informationIntroduction 1 Key Findings 1 The Survey Retirement landscape 2
Contents Introduction 1 Key Findings 1 The Survey 1 1. Retirement landscape 2 2. Aspirations and expectations for a changing retirement 2 The UK is ranked in the middle of the AEGON Retirement Readiness
More informationReshaping workplace pensions for future generations. Buck Consultants response to DWP Consultation
Reshaping workplace pensions for future generations Buck Consultants response to DWP Consultation December 2013 2014 Xerox Corporation and Buck Consultants, LLC. All rights reserved. Xerox and Xerox and
More information1. The ABI welcomes the opportunity to respond to the DWP consultation paper regarding the British Steel Pension Scheme.
Consultation Response: British Steel Pension Scheme Executive Summary 1. The ABI welcomes the opportunity to respond to the DWP consultation paper regarding the British Steel Pension Scheme. 2. A number
More informationA consultation on charging DWP consultation on Better workplace pensions
A consultation on charging DWP consultation on Better workplace pensions Response from Dr. Ros Altmann, independent pensions expert, pensionsandsavings.com. I am responding in a personal capacity as an
More informationA GUIDE TO PENSION TRANSFERS FINANCIAL ADVICE & WEALTH MANAGEMENT
A GUIDE TO PENSION TRANSFERS FINANCIAL ADVICE & WEALTH MANAGEMENT 2017 Have confidence in your pension and peace-of-mind to enjoy life now. Chartered Financial Advisers 29 years professional experience
More informationWhile this group have made preparations for retirement, they have not thought through their financial position or their spending needs in any
Executive Summary This report, Supporting DC members with defaults and choices up to, into, and through retirement: Qualitative research with those approaching retirement, is the first stage in a two stage
More informationRetirement Outcomes Review Final report: annex 3: Feedback on interim findings and our early thinking on remedies, and our response
MS16/1.3: annex 3 Final report: annex 3: June 2018 1. In this annex, we summarise the feedback we received on the interim findings and our early thinking on potential remedies. We also respond to these.
More informationResponse to: The Department for Work and Pensions Public Consultation. Reshaping Workplace Pensions for Future Generations
Response to: The Department for Work and Pensions Public Consultation on Reshaping Workplace Pensions for Future Generations Introduction Scottish Life and Royal London Group are pleased to respond to
More informationJoint Forum on Actuarial Regulation: Review of transfers from Defi ned Benefi t to Defi ned Contribution Schemes following pension freedoms
Review Professional discipline Financial Reporting Council March 2016 Joint Forum on Actuarial Regulation: Review of transfers from Defi ned Benefi t to Defi ned Contribution Schemes following pension
More informationTime to Focus on Getting Things Done. Delivering Pensions Stability faster. Risk. Reinsurance. Human Resources.
Aon Hewitt Retirement and Investment Solutions Time to Focus on Getting Things Done Delivering Pensions Stability faster Risk. Reinsurance. Human Resources. Time to focus on getting things done Delivering
More informationDC Pension Default Investments Meeting The Needs of Members. 14 May 2014
DC Pension Default Investments Meeting The Needs of Members 14 May 2014 Agenda Our approach to pensions Some questions to consider: 2 The Company Finmeccanica is a world-class high technology leader in
More informationThe truth and myths! about CDC What can CDC offer - risk sharing, risk pooling, smoothing and decumulation solutions
The truth and myths! about CDC What can CDC offer - risk sharing, risk pooling, smoothing and decumulation solutions Kevin Wesbroom Senior Partner Kevin.wesbroom@aon.com D 020 7086 9350 M 07711 666077
More informationFreedom and Choice in Pensions - Decisions
2014/25 22 July 2014 Freedom and Choice in Pensions - Decisions Introduction In the Budget of 19 March 2014, the Chancellor announced that tax law would be amended to give members with defined contribution
More informationDepartment for Work and Pensions. Consultation on Draft Guidance
Department for Work and Pensions Consultation on Draft Guidance The use of Default Options in Workplace Personal Pensions and the use of Group Self Invested Personal Pensions for Automatic Enrolment Response
More informationDepartment for Work & Pensions British Steel Pension Scheme. Response from The Pensions Management Institute
Department for Work & Pensions British Steel Pension Scheme Response from The Pensions Management Institute - 2 - Response from the Pensions Management Institute to DWP consultation British Steel Pension
More informationResponse by TISA to DWP Consultation Meeting future workplace pension changes: improving transfers and dealing with small pots.
Response by TISA to DWP Consultation Meeting future workplace pension changes: improving transfers and dealing with small pots. March 2012 TISA response to DWP Consultation: Meeting future workplace pension
More informationWork and Pensions Select Committee Inquiry into governance and best practice in workplace pension provision
Work and Pensions Select Committee Inquiry into governance and best practice in workplace pension provision Introduction 1. With the advent of automatic enrolment, questions of governance and best practice
More informationCan collective pension schemes work in the United Kingdom? Received (in revised form): 14 th August 2012
Original Article Can collective pension schemes work in the United Kingdom? Received (in revised form): 14 th August 2012 Sarah Smart is Chair of The Pensions Trust and a Board Member of the London Pensions
More informationResponse to DWP Green Paper consultation
Response to DWP Green Paper consultation May 2017 Making Sense of Pensions Security and Sustainability in Defined Benefit Pension Schemes Response to Green Paper Consultation This is a response to the
More informationREVIEW OF PENSION SCHEME WIND-UP PRIORITIES A REPORT FOR THE DEPARTMENT OF SOCIAL PROTECTION 4 TH JANUARY 2013
REVIEW OF PENSION SCHEME WIND-UP PRIORITIES A REPORT FOR THE DEPARTMENT OF SOCIAL PROTECTION 4 TH JANUARY 2013 CONTENTS 1. Introduction... 1 2. Approach and methodology... 8 3. Current priority order...
More informationThese examples are explored in more depth in the remainder of the Briefing Note along with points of particular relevance to the UK.
Briefing Note Number 76 Page 1 Introduction New pension flexibilities have brought an increased focus on issues around financial education and the ability of individuals to make the necessary decisions.
More informationGUIDE TO RETIREMENT PLANNING MAKING THE MOST OF THE NEW PENSION RULES TO ENJOY FREEDOM AND CHOICE IN YOUR RETIREMENT
GUIDE TO RETIREMENT PLANNING MAKING THE MOST OF THE NEW PENSION RULES TO ENJOY FREEDOM AND CHOICE IN YOUR RETIREMENT FINANCIAL GUIDE Green Financial Advice is authorised and regulated by the Financial
More informationBoard for Actuarial Standards. Consultation Paper: TM1: Statutory Illustrations of Money Purchase Benefits
Board for Actuarial Standards Consultation Paper: TM1: Statutory Illustrations of Money Purchase Benefits Response from The Pensions Management Institute - 2 - PMI s response to the consultation from BAS
More informationSecurity and Sustainability in Defined Benefit Pension Schemes Green Paper Questions and NFOP Responses
Security and Sustainability in Defined Benefit Pension Schemes Green Paper Questions and NFOP Responses OVERVIEW NFOP represents 65,000 individual pensioners predominantly in three Defined Benefit Pension
More informationINDEPENDENT REVIEW OF RETIREMENT INCOME CONSULTATION PAPER
INDEPENDENT REVIEW OF RETIREMENT INCOME CONSULTATION PAPER David Blake and Debbie Harrison 24 November 2014 1 BACKGROUND INDEPENDENT REVIEW OF RETIREMENT INCOME CONSULTATION PAPER On 29 May 2014, Rachel
More informationTISA RESPONSE TO DWP s CONSULTATION PAPER BETTER WORKPLACE PENSIONS: PUTTING SAVERS INTERESTS FIRST
TISA RESPONSE TO DWP s CONSULTATION PAPER BETTER WORKPLACE PENSIONS: PUTTING SAVERS INTERESTS FIRST November 2014 version 1.0 Page 1 of 7 INTRODUCTION TISA is a not-for-profit membership association operating
More information15 October 2012 UNISON response to the Mutuality within USS The scheme s admission terms and their role in scheme mutuality consultation document
15 October 2012 UNISON response to the Mutuality within USS The scheme s admission terms and their role in scheme mutuality consultation document Please contact Ben Thomas, National Officer for Education
More information14 November 2014 Better workplace pensions: Putting savers interests first
provided by B&CE 14 November 2014 Better workplace pensions: Putting savers interests first About B&CE B&CE is the not-for-profit provider of The People s Pension. It manages assets of 2.2 billion with
More informationPension age: occupational and personal pensions
Pension age: occupational and personal pensions Standard Note: SN/05847 Last updated: 1 February 2011 Author: Section Djuna Thurley Business and Transport Section Before 6 April 2006, the pension tax rules
More informationDepartment for Work & Pensions. Security and Sustainability in Defined Benefit Pension Schemes. Response from The Pensions Management Institute
Department for Work & Pensions Security and Sustainability in Defined Benefit Pension Schemes Response from The Pensions Management Institute - 2 - Response from the Pensions Management Institute to DWP
More information1. Introduction and Executive Summary
CHAIR S ANNUAL REPORT: The PTL Governance Advisory Arrangement NFU Mutual workplace personal pension plans March 2017 1. Introduction and Executive Summary This report on the workplace personal pension
More informationAugust 07, Re: Regulation Identifier Number RIN 1210 AB20. To Whom It May Concern:
August 07, 2013 Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N 5655, U.S. Department of Labor 200 Constitution Avenue N.W. Washington, DC 20210 Attention:
More informationFreedom and choice in pensions Buck Consultants response to Treasury Consultation
Freedom and choice in pensions Buck Consultants response to Treasury Consultation June 2014 2014 Xerox Corporation and Buck Consultants, LLC. All rights reserved. Xerox and Xerox and Design are trademarks
More information3.6TRN 4 UK INSTITUTIONAL CLIENT MARKET KEY FINDINGS
THE INVESTMENT ASSOCIATION 4 UK INSTITUTIONAL CLIENT MARKET KEY FINDINGS MARKET OVERVIEW >> IA members managed an estimated 3.6 trillion for institutional clients, up from 3.3 trillion in 2015. Pension
More informationMOVING THE NEEDLE ON EMPLOYEE FINANCIAL WELLNESS
HEALTH WEALTH CAREER FINDINGS FROM MERCER CANADA'S INSIDE EMPLOYEES' MINDS SURVEY MOVING THE NEEDLE ON EMPLOYEE PRACTICAL STEPS FOR CANADIAN EMPLOYERS 2 THE CHALLENGE OF EMPLOYEE A GROWING NUMBER OF EMPLOYERS
More informationISA qualifying investments: including peer-to-peer loans HM Treasury
ISA qualifying investments: including peer-to-peer loans HM Treasury Visualise your business future with Altus Consulting Reference HMT/P2PISA/RESP Date 09/12/2014 Issue 1.0 Author Bruce Davidson Security
More informationThe evolving retirement landscape
The evolving retirement landscape This report has been sponsored by A Research Report by Lauren Wilkinson and Tim Pike Published by the Pensions Policy Institute May 2018 978-1-906284-52-23 www.pensionspolicyinstitute.org.uk
More informationMeeting future workplace pensions challenges
Meeting future workplace pensions challenges NEST response to the Department for Work and Pensions consultation document Executive summary The Department for Work and Pensions (DWP) consultation document
More informationA GUIDE TO PENSION WITHDRAWAL TAKING BENEFITS UNDER NEW PENSION FREEDOM RULES
A GUIDE TO PENSION WITHDRAWAL TAKING BENEFITS UNDER NEW PENSION FREEDOM RULES OPTIONS AND CONSIDERATIONS FOR ACCESSING PENSION BENEFITS The aim of this guide is to provide a basic overview of the options
More informationIMA RESPONSE TO DWP CONSULTATION. Meeting future workplace pension challenges: improving transfers and dealing with small pension pots
IMA RESPONSE TO DWP CONSULTATION Meeting future workplace pension challenges: improving transfers and dealing with small pension pots March 2012 IMA Response to DWP Consultation: Meeting future workplace
More informationSomewhere. Cash Balance Plans. in the Middle
Somewhere Cash Balance Plans in the Middle By Paul Zorn The recent financial downturn and resulting economic decline have put substantial fiscal pressures on state and local governments. As a result, many
More information1. Introduction and Executive Summary
CHAIR S ANNUAL REPORT: The PTL Governance Advisory Arrangement Equitable Life workplace personal pension plans March 2017 1. Introduction and Executive Summary This report on the workplace personal pension
More informationMaster Trust Market Insight
Aon Defined Contribution Delegated Services Master Trust Market Insight February 2017 Risk. Reinsurance. Human Resources. Introduction In the past five years the UK s pension landscape appears to have
More informationCWU Submission to the Department for Work and Pensions on Security and Sustainability in Defined Benefit Pension Schemes
12 th May 2017 CWU Submission to the Department for Work and Pensions on Security and Sustainability in Defined Benefit Pension Schemes Introduction 1. The Communication Workers Union is the largest trade
More informationThe New Retirement Market: Challenges and Opportunities
Association of British Insurers The New Retirement Market: Challenges and Opportunities We are the voice of insurance and long term savings 2 Retirement market publication Summary The flexible retirement
More informationPension increase policy, the Notional Pensioner Account and when the pension increase policy can be changed; an actuary s perspective.
Pension increase policy, the Notional Pensioner Account and when the pension increase policy can be changed; an actuary s perspective. 1. In terms of section 14B of the Act, every Fund must establish a
More informationIn Sight. a quarterly pensions publication. Regulator consults on trusteeship. This quarter s round-up
Aon Hewitt In Sight a quarterly pensions publication May 2017 This quarter s round-up Page 1 Regulator consults on trusteeship 2 Green paper on DB pensions 2 DB investment guidance 3 Pensions tax update
More informationBriefing. The Social Housing Pension Scheme key issues and considerations for housing associations. Finance Policy. Tel:
Briefing The Social Housing Pension Scheme key issues and considerations for housing associations Contact: Team: John Butler Finance Policy Tel: 020 7067 1177 Email: John.Butler@housing.org.uk Date: November
More informationJaguar Land Rover pensions consultation
Jaguar Land Rover pensions consultation Useful questions and answers Final update 22 March 2017 Notification (28/02/2017) Following on from our notification on 17/02/2017 regarding the circulation of a
More informationIncome drawdown for corporate executives Received (in revised form): 18th March, 2002
Income drawdown for corporate executives Received (in revised form): 18th March, 2002 Steve Patterson has been an IFA for 20 years and has written numerous articles and spoken widely at both regional and
More informationCitizens Information Board Submission on a Universal Retirement Saving System (May 2015)
Citizens Information Board Submission on a Universal Retirement Saving System (May 2015) The Citizens Information Board appreciates the opportunity to make a submission to the Universal Retirement Savings
More informationPPI PPI Briefing Note Number 108
This is the first of two Briefing Notes looking at default strategies. This Note looks at how well the objectives of pension schemes default investment strategies meet the needs of their memberships. Objectives
More informationSaving for retirement
Saving for retirement Is 12% the solution? Whitepaper Contents 3 Executive summary 4 The challenge 7 Potential solutions 7 - Personalised engagement 9 - Sophisticated contribution level management 11 A
More informationUSS Valuation Questions and Answers
USS Valuation Questions and Answers Contents Understanding USS... 3 What kind of pension scheme is USS?... 3 USS currently offers defined benefit pensions, what does this mean?... 3 Who funds USS?... 3
More informationBelfast Region Committee. South Region Committee presents. "Mind Your Own Business" an evening with Bryan Johnson. Welcome
Belfast Region Committee South Region Committee presents "Mind Your Own Business" an evening with Bryan Johnson Welcome Retirement Planning CPD 17 Bryan Johnston This evening Challenges facing Irish Pensions
More informationIntroduction 1 Key Findings and recommendations 1 The Survey Retirement landscape in India Retirement aspirations and expectations 3
Contents Introduction 1 Key Findings and recommendations 1 The Survey 2 1. Retirement landscape in India 2 2. Retirement aspirations and expectations 3 3. Planning for retirement 4 4. Making saving easy
More informationSMARTER COMPANY PENSIONS
PENSIONS INVESTMENTS LIFE INSURANCE SMARTER COMPANY PENSIONS CONTENTS The difference a DECADE can make EXECUTIVE SUMMARY 02 FOREWORD 03 THE PENSION DILEMMA 04 TURNING THE SITUATION AROUND 14 BETTER OUTCOMES:
More informationSiemens Benefits Scheme Your guide to
Siemens Benefits Scheme Your guide to the Saver Plus Plan Contents Introduction 1 Overview 2 Joining 4 Contributions 5 Normal retirement from active service 7 Early retirement from active service 8 Ill-health
More informationMRC Pension Scheme. A guide for new members from 1 April 2018
MRC Pension Scheme A guide for new members from 1 April 2018 Welcome Welcome to the MRC Pension Scheme MRC has an excellent pension scheme that provides generous benefits linked to your career averaged
More informationWork and Pensions Select Committee inquiry into pensions auto enrolment
Work and Pensions Select Committee inquiry into pensions auto enrolment A response from NEST About NEST NEST is a trust-based defined contribution (DC) pension scheme that UK employers can use to meet
More informationPension freedoms inquiry IFoA response to Work and Pensions Committee
Pension freedoms inquiry IFoA response to Work and Pensions Committee 23 October 2017 About the Institute and Faculty of Actuaries The Institute and Faculty of Actuaries is the chartered professional body
More informationWorkplace Pension Reform (WPR)
Workplace Pension Reform (WPR) Last updated 12th December 2011 IFS Financial Management Ltd is Authorised and Regulated by the Financial Services Authority The purpose of this article is to explain to
More informationProposed Pension Changes Questions and Answers (Q&A3)
THE METAL BOX PENSION SCHEME Proposed Pension Changes Questions and Answers (Q&A3) Thank you for all your questions. We have tried to cover as many as possible of those received up to 19 October. If you
More informationWe are responding as an adviser to trustee clients and also to corporate sponsors of pension arrangements in the UK.
Katie Bromley Senior Associate Tower Place West London EC3R 5BU Tel/Fax 020 7178 3295 katie.bromley@mercer.com www.mercer.com Actuarial Policy Team Financial Reporting Council 8th Floor 125 London Wall
More informationTPR- 21 st Century Trusteeship and Governance Cardano response
1 Cardano TPR- 21st Century Trusteeship and Governance September 9, 2016 TPR- 21 st Century Trusteeship and Governance Cardano response September 9, 2016 1. Response to discussion paper 1. There are currently
More informationPENSION SCHEMES BILL EXPLANATORY NOTES
PENSION SCHEMES BILL EXPLANATORY NOTES INTRODUCTION 1. These explanatory notes relate to the Pension Schemes Bill as brought from the House of Commons on 26th November 2014. They have been prepared by
More informationROYAL LONDON POLICY PAPER 4. Britain s Forgotten Army : The collapse in pension membership among the selfemployed and what to do about it
ROYAL LONDON POLICY PAPER 4. : The collapse in pension membership among the selfemployed and what to do about it ABOUT ROYAL LONDON POLICY PAPERS The Royal London Policy Paper series was established in
More informationRethinking the Pension Freeze
The case for retaining a restructured defined benefit plan that benefits both sponsors and employees Steve White FSA, EA, MAAA Mark Olleman FSA, EA, MAAA The trend to freeze pension plans is old news.
More informationBack to the Future What yesterday can tell us about tomorrow s pensions
Back to the Future What yesterday can tell us about tomorrow s pensions Mark Rowlinson FIA 18 June 2013 Opening comments Defined contribution benefit pensions Current Good efficient funding framework outcomes
More informationData Bulletin March 2018
Data Bulletin March 2018 In focus: Findings from the FCA s Financial Lives Survey 2017 pensions and retirement income sector Latest trends in the retirement income market Issue 12 Introduction Introduction
More informationAquila Heywood's response to DWP's Consultation Paper on Technical Changes to Automatic Enrolment
Aquila Heywood's response to DWP's Consultation Paper on Technical Changes to Automatic Enrolment 9 January 2015 Version 2.02 - External Aquila Group Holdings Limited trading as Aquila Heywood Table of
More informationCARP Submission to the Department of Finance: Target Benefit Pension Plans
CARP Submission to the Department of Finance: A stated goal of the Government of Canada in consulting with Canadians on the introduction of TB plans is to promote the retirement income security of Canadians.
More informationIMA RESPONSE TO DWP CONSULTATION. Better workplace pensions: Further measures for savers
IMA RESPONSE TO DWP CONSULTATION Better workplace pensions: Further measures for savers May 2014 1 Better workplace pensions: Further measures for savers IMA Response to DWP Consultation The IMA 1 welcomes
More informationHybrid Pension Schemes
A Guide to Hybrid Pension Schemes TOWARDS The Pension Board has prepared this booklet in conjunction with the Towards 2016 Partnership Pensions Review Group. While every effort has been made to ensure
More informationKey Principles of Good Governance for Workplace Defined Contribution Pension Plans throughout Europe
Key Principles of Good Governance for Workplace Defined Contribution Pension Plans throughout Europe Core features Value for money Investments Fit and proper persons Accountability Administration Communication
More informationSmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Investment Principles
SmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Principles This Statement of Principles (SIP) is set out in three parts: 1) Governance arrangements 2) Objectives and implementation
More informationDepartment for Work & Pensions Reshaping workplace pensions for future generations. Response from The Pensions Management Institute
Department for Work & Pensions Reshaping workplace pensions for future generations Response from The Pensions Management Institute - 2 - Response from the Pensions Management Institute to the Department
More informationAon Hewitt Retirement and Investment. Pensions Administration Survey Risk. Reinsurance. Human Resources.
Aon Hewitt Retirement and Investment Pensions Administration Survey 2015 Risk. Reinsurance. Human Resources. Table of contents Executive summary...3 Key findings...4 The pensions landscape....5 Approaches
More informationUK trends in employee benefits. 65 Gresham Street, London EC2V 7NQ t f
UK trends in employee benefits 65 Gresham Street, London EC2V 7NQ t 020 7709 4500 f 020 7709 4501 The perfect storm 1. Faces behind the voices 2. Workplace pensions and retirement 3. Health and wellbeing
More informationDisclosure of costs, charges and investments in occupational pensions
Disclosure of costs, charges and investments in occupational pensions Response from NEST Corporation Executive summary We re pleased to contribute this response to the Department for Work & Pension s (DWP)
More informationFrank Field MP Work & Pensions Select Committee House of Commons LONDON SW1A 0AA. 24 June Dear Mr Field
Frank Field MP Work & Pensions Select Committee House of Commons LONDON SW1A 0AA 24 June 2016 Dear Mr Field 1. Further to our letter to the committee of 20 May, this submission provides some further information
More informationUK Pensions Regulation Compared
UK Pensions Regulation Compared October 2008 Key findings A study of pensions r egulation in several OECD countries pr epared by John Ashcroft for the National Association of Pension Funds. NAPF Research
More informationGSK Pension Fund ( the Fund ) Statement of Investment Principles
GSK Pension ( the ) Statement of Principles This Statement of Principles (SIP) covers the defined benefit and the defined contribution sections of the. It is set out in four parts: 1) Governance arrangements
More informationIrish Association of Pension Funds. EU Pensions Directive. Submission to Pensions Board re: Implementation
Irish Association of Pension Funds EU Pensions Directive Submission to Pensions Board re: Introduction IAPF welcomes the implementation of Directive 2003/41/EC and the important step it represents. We
More informationFinancial Planning Report
{{TOC}} Financial Planning Report Prepared for: Prepared by: Independent Financial Adviser PPOL Penylan Mill Coed-y-Go Oswestry Shropshire SY10 9AF 7/4/2015 SUITABILITY REPORT Introduction and Basis of
More informationDecember Comparing Pension Risk Attitudes and Aptitude in the United Kingdom and United States
December 2010 Comparing Pension Risk Attitudes and Aptitude in the United Kingdom and United States Executive summary The recent global market events have underscored the need to better understand and
More informationPMI Level 2 Award in Pensions Essentials Qualification Specification
PMI Level 2 Award in Pensions Essentials Qualification Specification Award in Pensions Essentials Qualification Specification Page 1 of 14 PMI Level 2 Award in Pensions Essentials QUALIFICATION AIM To
More informationThe future of retirement a consultation on investing for NEST s members in a new regulatory landscape
Schroder Investment Management Limited 31 Gresham Street, London EC2V 7QA Tel: 020 7658 6000 Fax: 020 7658 6965 www.schroders.com Mark Fawcett Chief Investment Officer NEST Corporation Riverside House
More informationPENSIONS POLICY INSTITUTE
The Pensions Primer: A guide to the UK pensions system Third-Tier Provision Updated as at July 2013 The Pensions Primer: a guide to the UK pensions system Overview of private pension provision 1 Employer-sponsored
More informationThe Pensions Regulator. Enabling good member outcomes in work-based pension provision. Response from The Pensions Management Institute
The Pensions Regulator Enabling good member outcomes in work-based pension provision Response from The Pensions Management Institute - 2 - The Pensions Regulator Discussion Paper: Enabling good member
More informationAssociation of Accounting Technicians response to Workplace Pensions Automatic Enrolment: simplifying the process and reducing burdens on employers
Association of Accounting Technicians response to Workplace Pensions Automatic Enrolment: simplifying the process and reducing burdens on employers Page 1 of 7 Association of Accounting Technicians response
More informationThe Future of Public Sector Pension Schemes
The Future of Public Sector Pension Schemes The NAPF Submission to the Independent Public Service Pensions Commission July 2010 Executive Summary Analysis I. The UK is suffering from a crisis in retirement
More informationRetirement Provision for an Ageing Population
GFIA-16-10 Retirement Provision for an Ageing Population GFIA opinion paper on ageing populations as a global risk Summary The world is experiencing an unprecedented demographic transformation brought
More informationBlackRock appreciates the opportunity to provide comments on the Department s proposals on workplace pension charging.
12 Throgmorton Avenue London EC2N 2DL Tel 020 7743 3000 Fax 020 7743 1000 www.blackrock.co.uk 28 November 2013 Charges Team Private Pensions Policy and Analysis 1 st floor, Caxton House 6-12 Tothill Street
More information