Tag: DB

DB Pensions – End-December 2011 PPF 7800 deficit

10 January 2012 The Pension Protection Fund produces a monthly index update (the January 2012 release has data taken as at 31 December 2011) of the estimated funding position of the defined benefit schemes potentially eligible for entry into the Fund. Total scheme deficits showed an increase from £222.1bn as at end November to £255.2bn as at end December : an new extreme value for 2011 and in line with the peak value at the height of the 2008/2009 crisis. The asset and liability contributions to this increase moved in different directions, with the strong performance from equity during the…

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DB Pensions – End-November 2011 PPF 7800 deficit

14 December 2011 The Pension Protection Fund produces a monthly index update (the December release has data taken as at 30 November) of the estimated funding position of the defined benefit schemes potentially eligible for entry into the Fund. Total scheme deficits showed an increase from £158.6bn as at end October to £222.1bn as at end November. This retraced the improvement over last month and established a new extreme for 2011 : aggregate deficit levels are now only just better than the peak level seen in 2009. The reasons for the change were entirely different to the October figures :…

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DB Pensions – End-October 2011 PPF 7800 deficit

21 November 2011 The Pension Protection Fund produces a monthly index update (the November release has data taken as at 31 October) of the estimated funding position of the defined benefit schemes potentially eligible for entry into the Fund. Total scheme deficits showed a decrease from £196.4bn as at end September to £158.6bn as at end October. Despite current turbulent market conditions, gilt yields were in fact relatively stable over the month leaving the dominant factor in the calculation to be the positive performance of equity markets over that period. External link

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Response to Call for Advice on the review of Directive 2003/41/EC – Solvency 2

1 November 2011 The European Commission has asked the European Insurance and Occupational Pensions Authority (EIOPA) to review the 2003 European Directive for the activities and supervision of Institutions for Occupational Retirement Provision (IORP) – Solvency 2. The outcome of this process is likely to drive the shape of the UK pensions industry for at least the next ten years and is therefore of vital importance. On 25 October, EIOPA issued a comprehensive paper: “Response to Call for Advice on the review of Directive 2003/41/EC: second consultation” into a consultation period that will run through until 2 January 2012 and…

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Inflation and Defined Benefit Pension schemes

31 October 2011 October saw the release of notably high inflation figures – a two year peak for CPI and a twenty year peak for RPI – coinciding with the setting of pension increases for UK defined benefit pension schemes with September year-end. We provided a brief update at the time of release here but here present a more detailed paper on the direct and indirect impacts of inflation on these schemes. Inflation provides a good example of a crucial factor that affects both sides of the DB scheme balance sheet and our response as pension professionals should therefore bear…

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The Pensions Regulator : Helping trustees understand risks in hybrid pension arrangements

25 October 2011 The Pensions Regulator today published a statement on “Helping trustees understand risks in hybrid pension arrangements”. Based on a survey that the Regulator carried out earlier in 2011, the paper highlights the need for a proper understanding of the characteristics of individual schemes (given the lack of homogeneity in this sector, this is understandable) along with key risks facing trustees: governance, member communications, benefit segregration and calculation, investment risk and provision of statutory retirement options. External link

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