Archive for the ‘Final Salary’ Category
Everything you need to know about pensions
Thanks to the legal bods at DLA Piper for putting together their excellent Pensions News publication.
The October 2013 version just landed. It’s got everything in there you could possibly need (or want) to know. From Auto Enrolment to Pension Liberation and updates of what has been happening with The Pensions Regulator, HMRC, DWP and The Treasury it’s got something for everyone.
If you’ve got any involvement in your organisation’s pension planning there is something in there for you. If you read nothing else this month – read this!
Click here for to go to Pensions News.
Steve Clark
Apples, pears and pensions on divorce
Those very nice legal people at Rawlinson Butler LLP down in Sussex have written a really good article touching on some of the issues around pensions and divorce.
Have a read here. It’s short and sweet and sums up some of the issues really well.
Steve Clark
A higher pension–but at what price?
Former BT employees are the latest to get an offer from their former employer of a higher 
pension.
Similar offers have previously been made by Boots and ITV. Of course there’s a catch. The company is offering a higher fixed pension that will never increase in future, whereas its normal pension rises in line with inflation.
For those in good health, the danger of taking the fixed pension is that they live into their nineties and that the rate of inflation rises – in that case the spending power of their income will shrink. On the other hand, for those in poor health who aren’t likely to live long, a higher income now could represent a very good deal.
If you get such an offer, ask our advice, as there are often wrinkles (for example in relation to spouse’s pension rights) that could be very important.
Steve Clark
Unlocking local authority pension funds could build 20,000 homes
According to specialist Hearthstone Investments investing the capital held in Local Government Pension Schemes (LGPS) could help build 20,000 homes.
Last November, Islington Council invested £20m (2.5%) of its pension fund into the TM Hearthstone UK Residential Property Fund to deliver new housing. If this all 89 pension funds did the same it would mean investment for new housing of around £4bn.
Christopher Down, chief executive of Hearthstone, said: ‘The recent landmark investment by Islington Council in the Hearthstone Fund provides a case study for how investment by LGPS can play a role in alleviating this crisis without requiring new sources of capital at a time of austerity.’
Richard Greening, Islington Council’s executive member for finance and performance, urged other pension schemes to join the fund to boost the delivery of new housing.
He said: ‘Our decision to invest in residential property was based on careful analysis of the options. It reflects our view that investment in this sector will produce good long-term returns for local taxpayers and the members of our pension fund.
‘We selected the TM Hearthstone fund because it is the only FCA regulated fund in the sector and is run by a team with considerable investment management experience. The fund offers a tax-efficient means for our pension fund to invest in the UK’s largest asset class without taking on the risks associated with investing in housing directly or in smaller schemes.’
The combined market value of all 89 LGPS in England and Wales at the end of March 2012 was £157bn.
Steve Clark
Call for single pension regulator
The Work & Pensions Committee have called on the government to reassess the case for establishing one body with sole responsibility for regulating workplace pensions.
The Report calls on the Government to reassess the case for establishing one body with sole responsibility for regulating workplace pensions.
Noting concerns over current gaps in regulation and the potential for further gaps to arise as a result of now having three regulators with a role to play, the Report argues that a single regulator is necessary to ensure that all members of workplace pension schemes are adequately and consistently protected.
Comment
The Work & Pensions Committee is simply echoing what those in the pensions industry have been saying for some time. The distinction between the regulation of company pension schemes and contract based plans has been a source of concern for many.
If the Coalition Government is serious about reducing red tape here is great opportunity!
Steve Clark