For any company considering whether to offer or continue to offer a traditional defined benefit DB pension scheme, the fundamental issue is whether the benefit of doing so justifies the cost. The rationale is clear: in providing a desirable benefit for employees, the company hopes to attract and then retain...
The Pension Protection Fund PPF seeks to provide increased protection for members should the sponsoring employer become insolvent and the scheme have insufficient assets to meet its liabilities. This provides pension scheme trustees with the freedom to invest more aggressively; however, the paper argues that this is inappropriate and, additionally,...
This paper depicts about a survey that provides a picture of the current status of pension scheme governance. It is unique in being the first survey to provide an objective view of the internal workings of large UK pension schemes. This survey represents the ongoing commitment to the pensions industry...
The paper depicts that the Pensions Regulator has now started to issue guidance on those requirements of the Pensions Act 2004 which relate to the security of members' benefits. The Pensions Act introduced powers for the Regulator to require companies other than the sponsoring employer or even individuals to contribute...
The author of this artice says that it is also possible to make personal pension contributions based on your highest earnings in any of the last five tax years - called your 'base year.' for tax purposes. This applies both to the employed and self-employed. It also explains about facts...
The paper analyzes the range of default funds offered by UK stakeholder pension schemes, against the background of research that shows the majority of pension scheme members passively accept the default arrangements offered by the scheme sponsor. It finds the default funds vary substantially in their strategic asset allocation and...
In the thirty years since the introduction of the Employee Retirement Income Security Act, tremendous changes have taken place in the US private pension environment. As the change matures, it is becoming clear that the problem of optimal pension scheme design has not been solved. On the contrary, much work...
Traditionally, finance directors have aimed to minimise pension scheme contributions by encouraging the use of optimistic investment return assumptions and spreading any cash commitment over the longest credible period. Trustees would set out to get as much money in the fund as quickly as possible. Generally, a compromise would be...
Large sections of the UK population are failing to make adequate provision for their retirement, and one area where provision is notably poor is among people working for small- and medium-sized businesses SMEs. This paper is based on information gathered from interviews with individuals from a wide range of organizations...
Deciding on the appropriate mechanism for providing security to pension scheme members is an important issue for scheme sponsors. It is likely to become even more important as schemes mature and greater attention is paid to more volatile funding measures such as FRS 17 and IAS 19. The need for...
In recent years there has been a significant shift in retirement income provision in the UK from the situation where employers offer defined benefit pensions, to one where defined contribution schemes are more common. This paper uses data from a survey of the members of a mid-sized UK DC pension...
This paper initially explores the rationale and growth of corporate social responsibility by companies. The paper then charts the development and legislative background to the regulations to the Pensions Act 1995 and the forthcoming Charities Act 2005, which for the first time obliges charities and pension scheme trustees to state...
This paper reveals how soaring Defined Benefit DB pension scheme costs are inhibiting many companies' ability to operate, compete and ultimately survive. While previous research has focused on the costs of providing DB plans, this report shows the extent to which pension costs are influencing a company's fundamental, day-to-day operations....
This paper analyzes the investment allocation and the downside risk faced by the retiring member of a defined contribution pension scheme, where optimal investment strategies derived from a dynamic programming approach have been adopted. The behavior of the optimal investment strategy is analyzed when changing the disutility function and the...
The purpose of this paper is to investigate the role that high yield corporate debt may play in pension scheme investment. After describing the origins of the high yield corporate debt market, the paper compares the investment characteristics of high yield corporate debt with both equities and investment grade bonds....
This paper proposes radical simplification of pensions taxation. The complexity of the tax rules for pensions has come about because each successive set of changes has overlaid the previous rules, which have been allowed to continue for people who stay in the same pension scheme. These rules restrict choice and...
A survey reveals that organisations have not got to grips with how best to motivate and retain staff using benefits packages despite clear evidence that they can work wonders with morale. Private health insurance, share options, company car, pension scheme, gym membership - there is little doubt that what employers...
This article examines the way in which the pensions exemption has been eroded and it's more limited application in the future. Historically, it has been widely assumed that all the rights and liabilities under a seller's occupational pension scheme would not transfer to a buyer under the Transfer of Undertakings...
LONDON (Reuters UK) - Media group Trinity Mirror TNI said on Wednesday it was trading comfortably within the covenants for its debt facilities after shares in the struggling newspaper publisher tumbled on market concerns. Trinity, which warned on profits two weeks ago due to a ...
The deal had a purchase price of £620 million and was the largest management buy-out in 1997 – over 10 territories were involved. Our clients were backing the management buy-out of the business and needed some specialist pensions advice. PWC were asked to provide pensions advice on the sale and...
