Our quarterly summary of pensions issues covers the new Pension Schemes Bill, the latest on GMP equalisation, investment duties for trustees, and a round-up of other news.
A cross-industry GMP Equalisation Working Group that was set up to assist schemes following the High Court ruling in the Lloyds case, has published A Call to Action. This high-level guide identifies three initial areas where schemes can start to focus their efforts: data, GMP rectification and impacted transactions. It also includes a checklist of tasks that can be carried out now in preparation for an equalisation project.
Without consultation, the DWP has published new regulations that amend trustees’ investment duties, starting from October 2020. The new provisions will further extend the requirements for what needs to be included in the statement of investment principles (SIP), and for disclosure of investment policies on an external website.
This In Depth focuses on a method of equalising GMPs which avoids the need to maintain dual (or multiple) administration records into the future – and allows schemes to remove GMP liabilities through a one-off exercise, by converting GMPs into an alternative benefit in a form chosen by the trustees.
Our quarterly summary of pensions issues looks at forthcoming changes to the Pensions Regulator’s powers, along with the DWP’s latest guidance on equalisation for GMPs by conversion. It includes updates on DC investments, CDC schemes and other news.
The Pensions Regulator (TPR) has published its annual funding statement (AFS) for defined benefit (DB) schemes.
Bulk annuity market doubled in 2018...
3 February marked 100 days since the ruling in the Lloyds Bank GMP equalisation case, affecting thousands of UK DB pension schemes and millions of members.
Are you cashflow negative? The regulator wants Trustees to have a cashflow policy, but beware… cashflows are volatile. A cashflow MOT can test the robustness of your cashflow policy under different scenarios. Disinvesting from assets to meet cashflows and using investment income may both be reasonable policies. It is worth considering contractual income assets. View the Cashflow MOT to find out more.
The DWP has published its response to last year’s consultation on ‘Protecting Defined Benefit Pension Schemes - a stronger Pensions Regulator’. Most of the additional powers proposed for the Regulator will be taken forward. Legislation will follow as soon as Parliamentary time allows.
Our quarterly summary of pensions issues looks at government consultations on DB consolidation and CDC schemes, as well as updates on equalising for GMPs and investment issues, and includes a round-up of other news.
The Government is consulting on a new regime to encourage consolidation of schemes. Views are being sought on a legislative framework for authorising and regulating DB 'superfund' schemes. Our technical update summarises the proposals.
The High court has ruled that ‘GMP equalisation’ is required and suggested several possible methods to achieve this. The ruling helps to address the long running uncertainty surrounding the requirements. Our note provides a summary of the findings.
Our quarterly summary of pensions issues includes changes to investment duties for trustees, as well as updates on the pensions implications of Brexit and climate change risks, and a round-up of other news.
In our new guide, we explore the ways administration is changing and how it is impacted by (and can impact) your priorities. How can you and your administrator ensure your scheme is in the best place to deliver against your objectives?
Our new whitepaper examines the complex options facing UK pension schemes and the implications of their chosen method of valuation.
The DWP has confirmed changes to trustees’ investment duties that will become effective in October 2019. The Statement of Investment Principles will need to set out additional information, including how trustees take account of the views of members (if at all) and climate change. Money purchase schemes will need to disclose the new information online and also produce an implementation report.
Our quarterly summary of pensions issues includes government consultations on a stronger Regulator and on clarifying investment duties for trustees, as well as new legislation and a round-up of other news.
Powering your journey towards success.
The DWP has published a consultation on TPR powers, suggesting an expanded list of notifiable events, with an employer 'Declaration of Intent' required in some circumstances, new and bigger penalties for non-compliance and enhanced anti-avoidance powers. Our note summarises the proposals.
The DWP has published a consultation on 'clarifying and strengthening investment duties', proposing changes to the content of SIPs, a new requirement for trustees to prepare a "statement on members' views" and additional requirements for certain schemes to disclose information online. Our note summarises the proposals.
New rules came in from 6 April 2018 intended to simplify bulk transfers without member consent for those defined contribution (DC) rights that do not include underlying promises or guarantees. The DWP has published guidance to help trustees comply with the regulations, covering matters such as choosing an appropriate adviser, charge cap maintenance and other good practice considerations.
Aon’s John McAleer and Legal & General’s Costas Yiasoumi discuss the challenges faced by mature defined benefit pension schemes and present a framework for managing their run-off, in this article first published in The Actuary.
This chapter covers: A year of increasingly strong market opportunities; Full scheme bulk annuities – a case study; Innovative asset strategies support better annuity pricing; Pre-Compass Checklist; Key opportunities for smaller schemes.
In this market review, our team will help you to navigate some of the popular topics of 2017 and discuss some of the key trends expected in 2018.
A summary of the settlement market, topical articles and insights from our clients on recent transactions.
Our quarterly summary of pensions issues includes the latest on auto-enrolment and DC charges, as well as transfer developments and a round-up of other news.
Aon's real-time valuation and risk management system, Risk Analyzer, can help you to understand, manage and take immediate action in relation to your scheme.
ILS funds earn premiums for insuring natural catastrophes such as storms, earthquakes and floods, and man-made disasters such as marine and aviation calamities.
Aon’s cyber resilience workshop helps trustees establish key risks and a plan to protect their scheme’s data, assets, members and sponsor, as well as themselves.
Read Aon's business philosophy
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This article was first published by Pension Fund Service.
Our monthly Risk Settlement bulletin looks at the advantages annuities can offer over other bond based de-risking strategies.
The ability of LGPS employers to fund their liabilities is critical to ensuring the long term sustainability of LGPS funds and to protect other employers.
Notionally allowing assets to employers in the LGPS
Assessing longevity risk in the LGPS.
Why is assessing employer covenant important?
Cybercrime is a growing area of concern for pension funds, and one which both committees and administering authorities need to pay attention to.
Our quarterly summary of pensions issues includes the latest on auto-enrolment and DC charges, as well as transfer developments and a round-up of other news.
Annuity pricing has been exceptional over the last few months, but how much better can it get?
At Aon our definition of good governance focuses on having the right structure, the right processes and the right people involved in running the pension scheme; with the right skills to not only mitigate the risks the scheme face but also to capitalise on any transient market opportunities.
Pension Schemes face many challenges, and as regulatory requirements continue to grow one of the key challenges is effective governance. With The Pensions Regulator now also focussing on this area, with its work on 21st Century Trusteeship and Governance, Aon has a simple process to review how your trustee board runs.
New legislation, volatile markets and changes in member expectations create a challenging environment for sponsors and trustees alike.
Our quarterly summary of pensions issues looks at the Regulator's scheme governance initiatives, as well as new money laundering regulations and a round-up of cases and other news.
2017 has continued to see improvements in bulk annuity pricing for a wide range of transactions. For some schemes we expect the cost of securing all benefits with an insurer has reduced by as much as 10% over the last 12 months.
The C Suite magazine looks at two case studies of Implemented Consulting in action
This flash report details risk settlement business volumes for the first half of 2017.
Our monthly Risk Settlement bulletin looks at the advantages annuities can offer over other bond based de-risking strategies.
Our monthly Risk Settlement bulletin looks at the advantages annuities can offer over other bond based de-risking strategies.
Paul McGlone, Aon Hewitt, looks at why giving up the link between liabilities and gilts is not as simple as it sounds. This article was first published in Pensions World.
Our quarterly summary of pensions issues includes the Regulator's annual funding statement, as well as the latest on DC charges and pensions advice; and a round-up of cases and other news.
Tiziana Perrella explores how a tranched approach can pay benefits in this article, first published in PMI News.
Andrew Grime talks to Accounting Web about Aon's Implemented Consulting.
Andrew Grime discusses how to reduce the problems of a DB scheme with Director of Finance magazine.
Ben Roe, Partner and head of member options, examines transferring from a DB scheme. First Published in Pensions Expert.
Our monthly Risk Settlement bulletin looks at the advantages annuities can offer over other bond based de-risking strategies.
The Global Pension Risk Survey is Aon Hewitt's biennial survey of scheme sponsors, trustees and other pensions professionals.
The 2017 edition of the UK survey covers 185 different schemes with nearly 4.5 million members and almost ?500 billion of assets.
Our monthly Risk Settlement bulletin looks at the advantages annuities can offer over other bond based de-risking strategies.
In this year's funding statement, the Pensions Regulator suggests specific actions for schemes in managing their deficits. The statement signals the Regulator's intention to be clearer on its expectations of trustees and employers.
Hannah Cook looks at the four reasons for the expansion of the longevity market in this article, first published in Professional Pensions.
Tiziana Perrella discusses factors that may put schemes off bulk annuities and provides guiding principles for trustees and sponsors when buying the asset, in this article, first published in Professional Pensions.
Part 3 of the Pensions Expert roundtable series on valuation methods with Paul McGlone of Aon Hewitt, Andrew Young, Leslie Scrine, Andrew Cheeseman and David Weeks.
Summary of Results
Part 2 of the Pensions Expert roundtable series on valuation methods with Paul McGlone of Aon Hewitt, Andrew Young, Leslie Scrine, Andrew Cheeseman and David Weeks.
Securing pension scheme payouts via an insurance company needs careful preparation and a clear focus. John Baines, partner at Aon Hewitt, looks at how to achieve this. This article was first published in Engaged Investor in April 2017.
Michael Walker explains why a phased approach in the bulk annuities space can help pension scheme funding in this article, first published in Pensions Age.
Ben Roe looks at how you can reduce the risk posed by your DB scheme in this article, first published in Today's CFO.
Our monthly Risk Settlement bulletin looks at the advantages annuities can offer over other bond based de-risking strategies.
The bulk annuities market demonstrates capacity of ?20bn for the first time.
Aon's annual review of the risk settlement market covers bulk annuities, longevity swaps and other risk transfer solutions.
Paul McGlone sat on a Pensions Expert Roundtable with Andrew Young, Leslie Scrine, Andrew Cheeseman and David Weeks to talk about valuation methods. This is the first in a series of write-ups appearing in April 2017.
A new Green Paper discusses many of the recommendations made by the Work and Pension Committee, and poses questions on possible ways forward.
James Miller from Aon Hewitt discusses how to transfer your way to a better outcome. First Published in Pensions World in March 2017.
This paper summarises our research into pension scheme governance and delivery models, and considers how a pension scheme should be organised in order to get the best possible chance of carrying out the tasks necessary to reach that aim. In particular, it considers how governance generally, and processes specifically, can assist or distract defined benefit (DB) pension schemes in achieving their long-term objectives.
Our quarterly summary of pensions issues includes the Regulator's discussion paper on the 21st century trustee, as well as the latest on pensions inquiries and improving pensions advice.
Delivering Pensions Stability faster
A user-friendly web-based tool to support defined benefit members at retirement.
The PPF has published its consultation on the calculation of the 2017/18 levy. It runs until 31 October and is expected to be finalised in December. Our note summarises the proposals.
Our monthly bulletin provides an up-to-the-minute picture of the UK's risk settlement market, with insight and analysis.
If Defined Benefit (DB) pension schemes were likened to the human lifespan, then they are entering middle-age. For most, the features of youth- contribution holidays, equity-laden investment strategies, and double-digit interest rates- are gone.
This edition of In Depth sets out the approaches to and results of UK pension schemes' funding valuations completed up to July 2016. The analysis considers the assumptions adopted for assessing schemes' liabilities and formulating recovery plans, and looks ahead to next year's valuations and beyond.