All Covenant articles – Page 9
-
News
Trustees lukewarm on consolidator benefits
On the go: Most defined benefit trustees doubt the ability of commercial consolidators to improve their members’ security, according to a new survey that also reveals widespread ignorance of the two new players in the market.
-
OpinionWhat to consider when agreeing a recovery plan in 2019
Agreeing an appropriate recovery plan is often a complex balancing act for trustees and may include difficult negotiations with sponsors.
-
OpinionPre-pack administrations are not the bogeyman they seem
To some, the phrase ‘pre-pack administration’ can evoke a sense of loss and injustice, evidenced by criticism in the press, particularly where the sale is to the current owners or management. To others, it can provide an opportunity to rescue a business and save jobs.
-
OpinionSouthern Water case: How TPR ensures schemes are treated fairly
For some time, we have made clear there is an important balance to be struck by employers and trustees between dividend payments and deficit repair contributions.
-
News
Southern Water agrees higher DRCs after regulator investigation
Utility company Southern Water has agreed to pay significantly higher deficit repair contributions under a shorter recovery period, following an investigation by the Pensions Regulator.
-
NewsNo-deal Brexit a possibility as McVey and others quit
Esther McVey has resigned as secretary of state for work and pensions amid a raft of cabinet resignations, raising speculation about the impact of a no-deal Brexit on the pensions sector.
-
NewsHammond’s Budget looks to unlock DC savings for patient capital
The government is to consult next year on whether the charge cap for defined contribution default funds should be changed to unlock greater investment in patient capital, as part of a Budget with significant implications for DC savers.
-
Features
Testing times for charity DB pension schemes
At the beginning of last year, the Royal Society for the Protection of Birds closed its defined benefit pension fund and replaced it with a new defined contribution scheme.
-
OpinionDo not be afraid to say no to weakening covenants in credit
As pension schemes look to derisk their portfolios, many choose to increase an allocation to credit. However, weakening protections in some markets mean a focus on the worst-case scenario may be necessary.
-
News
FTSE 100 DB risk drops nearly a quarter
The aggregate risk across FTSE 100 defined benefit schemes has fallen to its lowest level in four years, according to research that seeks to integrate covenant and investment risk.
-
OpinionWhat might the govt’s regime for commercial consolidators entail?
As commercial consolidators of defined benefit schemes become a reality, authorisation and regulation of these consolidators is being considered.
-
News
More than 40 schemes in talks with Clara
Commercial consolidator Clara Pensions has entered into talks with more than 40 defined benefit pension schemes regarding potential transfers into the superfund, management has revealed.
-
Features
Trustees pour cold water on wild consolidator claims
The Edi Truell-backed Pension SuperFund has been no stranger to controversy in its short lifespan.
-
OpinionTrustees must not shirk responsibility on DB transfers
From the blog: The Merchant Navy Officers Pension Fund has, in common with many other defined benefit pension schemes, seen a significant increase in transfers out of the fund since the introduction of pensions freedoms introduced three years ago under the then pensions minister, Steve Webb.
-
PodcastsPodcast: How should trustees be monitoring their employer covenant?
Podcast: Over the last few years, headlines highlighting several high-profile defined benefit pension cases have hammered home the importance of having a strong covenant. Mark Evans, director at Independent Trustee Services, and Adolfo Aponte, director at covenant specialists Lincoln Pensions, explain how trustees can keep tabs on their employer.
-
OpinionRegulation must adapt to protect members in consolidation deals
Consolidation of defined benefit pension schemes to drive efficiencies is not a new concept, but what now dangles before us is the concept of pension consolidation vehicles offering existing sponsoring employers a clean break option within the non-insurance space.
-
News
DB governance: Small schemes fail to keep pace
Small defined benefit schemes are still lagging behind their larger counterparts when it comes to governance standards, new research from the Pensions Regulator has shown.
-
News
Regulator calls for schemes to consider lowering transfer values
On the go: The Pensions Regulator has asked the trustees of several defined benefit schemes to contemplate cutting transfer values for workers opting out of schemes.
-
News
Renishaw in recovery plan discussion with regulator
British engineering company Renishaw has been in discussions with the Pensions Regulator after the watchdog questioned its recovery plan, potentially leading to a £45m cash contribution to the scheme if the current recovery plan is terminated.
-
News
Record corporate debts – a covenant warning signal?
UK companies’ net debts hit record highs over 2017/18, a new study has found, prompting concerns about how some sponsors of the UK’s defined benefit pension schemes will weather a turn in the interest rate cycle.