Tag: DB

New rules and guidance on how pension transfer values are calculated

4 May 2012 In March, we highlighted (see Updates) the FSA’s consultation on their to change the way that pension transfer values are calculated. These are often considered in the context of moving a pension pot from an existing defined benefit arrangement into a separate defined benefit scheme but also have influence in other areas of establishing cash equivalence: e.g. tax-free commutation, inter-scheme transfers, purchase of addditional years accrual and so forth. The FSA has noted, particularly given the risk involved in given up the certainty of DB, that they would expect the starting point for pensions transfer advice to…

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DB Pensions – End-March 2012 PPF 7800 deficit

11 April 2012 The Pension Protection Fund produces a monthly index update (the April 2012 release has data taken as at 30 March 2012) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. Total scheme deficits showed an decrease from £222.2bn as at end February to £206.2bn as at end March with a corresponding improvement in s179 funding ratio to 83.4% thus continuing the welcome trend of improvement over the past three months. The backdrop to this change over the month was an improvement in gilt yields (helping liabilities)…

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Financial Services Authority : Consultation on how pension transfer values are calculated

22 March 2012 The FSA is coming to the end of the consultation period on proposals to change the way pension transfer values are calculated. This consultation, ending on 25 March, seeks to “clarify and update the current standards and aim to ensure that pension scheme members considering a transfer are given a fair assessment of what they will receive in retirement”. The FSA defines the scope of a pension transfer as the process by which a pension is moved from a DB into a personal pension scheme, but the approach could have influence in other areas of establishing cash…

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DB Pensions – End-February 2012 PPF 7800 deficit

20 March 2012 The Pension Protection Fund produces a monthly index update (the March 2012 release has data taken as at 29 February 2012) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. Total scheme deficits showed an decrease from £265.5bn as at end January to £222.2bn as at end February with a corresponding improvement in s179 funding ratio to 82.4%. It is worth noting that s179 deficits are calculated with reference to eligible benefits on entry to the PPF (approximately: 100% of pensions already in payment and 90%…

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DB Pensions – End-January 2012 PPF 7800 deficit

15 February 2012 The Pension Protection Fund produces a monthly index update (the February 2012 release has data taken as at 31 January 2012) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. Total scheme deficits showed an decrease from £270.8bn as at end December to £265.5bn as at end January with a corresponding small improvement in s179 funding ratio to almost 80%: It is worth noting that s179 deficits are calculated with reference to eligible benefits on entry to the PPF (approximately: 100% of pensions already in payment…

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PPF/tPR : 2011 Purple Book

2 February 2012 Each year (2011 is the sixth year of production), the Pension Protection Fund and the Pensions Regulator jointly publish the Pensions Universe Risk Profile (Purple Book). This document profiles the state and risks facing UK defined benefit schemes. The analysis is conducted using scheme returns and 2011 therefore covers some 98% of the total number of schemes and 99.6% of estimated total liabilities. It is therefore highly representative of the state of the industry. The main data and analysis focuses on the situation at the end of March 2011 : the summary therefore bears out relatively little…

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