April 2009
'Regulator hints it will accept longer recovery plans for under-funded UK pensions' Simon Banks is quoted:
Many pension trustees have become entrenched on the Regulators trigger point of ten years, say Simon Banks, principal at Punter Southall. Bfinance.co.uk, 30 April 2009
'High earners find ways to escape Darling's budget tax squeeze' Joanne Livingstone comments:
"We call on the Treasury to end the panic and uncertainty immediately by explaining clearly what the benefit-in-kind charge is designed to achieve, what exemptions there will be for existing promises and commitments, and the rationale for tapering.
"Otherwise the mealy mouthed promise of yet more consultation without a clear description of the Treasury's aims will lead to a planning blight. The government has spent a long time bringing in pensions simplification, only to begin a new era of pensions complication." Guardian.co.uk, 29 April 2009
'Inflation or deflation - which is worse?' Matthew Furniss is quoted:
However, while this may be bad news for those with high levels of debt, pensioners could benefit from a period of deflation in the UK, senior consultant at Punter Southall, points out.
'Deflation is clearly of concern to the UK economy as a whole but, surprisingly, can actually impact pensioners favourably thanks to their spending habits and the way that both company and state pensions are calculated.' What Investment Online, 28 April 2009
'CashFac teams to Altus for STP solution' Dave Watkins comments:
"It is very refreshing to see two key STP players introducing real solutions to process issues rather than focusing entirely on the technology. Professional Pensions, 24 April 2009
'What the 2009 Budget means for you' Danny Vassiliades comments:
"The greatest impact is likely to be on the lone breadwinner family rather than on the 'super' wealthy who are likely to be able to continue to manage their affairs to mitigate the impact and could move to more advantageous tax jurisdictions. Changes to introduce a 50pc tax rate for earning in excess of 150,000 mean there is a risk this will affect a much wider range of people than that implied by the Government's top 1pc designation." Telegraph.co.uk, 22 April 2009
'Pensioners and high earners hold their breaths for budget D-Day' David Cule is quoted:
This would be a disincentive to save. What is forgotten is that pension tax relief is really just tax deferred. You may get 40 per centre relief on the way in, but in retirement these same people will have to pay income tax on their pensions," says David Cule, a principal at Punter Southall. Independent on Sunday, 19 April 2009
'Punter Southall suggests pension boost in upcoming Budget' Joanne Livingstone is quoted:
Topping the list of incentives to invest in pension schemes would be for the Government to deliver direct assistance to those schemes struggling to maintain their funding positions, said Punter Southall principal and technical director Joanne Livingstone.
She said that this assistance might be financial, or the Government could enable schemes to reduce risk and liabilities by taking on the responsibility for paying pensions to those who live longer than presently expected. This would allow for schemes to pay pensions for a known maximum period.
If the Government does not provide direct assistance, it could still offer help by introducing new financial instruments, such as longevity linked government securities which could help schemes manage their risks.
"Financial instruments need to be targeted to the needs of pension funds," said Livingstone. With potentially rising inflation, the issuance of index-linked gilts would be more helpful than fixed interest gilts, she added.
She also said "do not try to balance the books by reducing existing tax reliefs or benefit caps," in order to retain more incentives to investing in pension schemes.
Another wish is to "rethink the timing of the introduction of personal accounts in 2012," as research suggests the UK may just be emerging from the recession in 2012, said Livingstone.
Lastly, as PPF levies have become a "substantial burden for many employers," the Government needs to provide funds and support for the PPF, so that it can also weather the financial storm without needing largely increased levies, said added. Professional Pensions, 17 April 2009
'Victims and Villains' Jane Beverley is quoted:
Jane Beverley, head of research at Punter Southall, expects a change of emphasis to take place.
"In the past we have focusing on the fist pillar (of solvency)" she says. "People are looking more and more at the second and third pillars and asking what are the messages from those for pensions schemes in terms of supervision, in terms of what the pension regulator does, in terms of governance, in terms of information given to members? And these are just as effective in managing risk as having the solvency capital. I think the debate is broadening out. It's making us ask questions about what are the key messages of solvency and to what extend do we already have those in pensions. The IORP Directive has a framework which arguably does have the three pillars." European Pensions, March/April issue 2009
'Pension lifeboat ships £240bn' David Cule is quoted:
David Cule, principal at Punter Southall, pointed out the deficit is already "significantly greater than the quantitative easing package" and "on a par with the level of support for the banking system". Guardian, 15 April 2009
'Pension shortfall rises 18% in month' David Cule comments:
"In current conditions UK companies are required to provide at least £240bn of support for UK pension schemes – more if benefits are expected to be provided in full. This is significantly greater than the quantitative easing package put together for the UK banking system." The Herald, 15 April 2009
'Pension Funding Shortfall triples in a year' David Cule comments:
"Today's news from the PPF shows that in current conditions UK companies are required to provide at least 240bn of support for UK pension schemes- more if benefits are expected to be provided in full.
"This is significantly greater than the quantitative easing package put together and on a par with the level of support being put together for the UK banking system." Press Association, 14 April 2009
'Shortfall triples in a year' David Cule comments:
"Today's news from the PPF shows that in current conditions UK companies are required to provide at least £240bn of support for UK pension schemes – more if benefits are expected to be provided in full."This is significantly greater than the quantitative easing package put together and on a par with the level of support being put together for the UK banking system." Channel 4 News, 14 April 2009
'Non-EEA firms may be denied PPF safety net - EXCLUSIVE' Jane Beverley comments:
"You want there to be complete parity between those paying the levy." Professional Pensions, 9 April 2009
'Government should pay half of 2009 PPF levy – Exclusive' Joanne Livingstone is quoted:
Technical director Joanne Livingstone said while the government would not underwrite the lifeboat fund it would be very helpful if it at least undertook to pay some of the PPF levies required from sponsors of defined benefit schemes.
She explained: "For example, it would be enormously helpful if they undertook to meet say half of each sponsors levy.
"If this was done for all sponsors then the system could be cheaply administered, it would provide much needed relief for sponsors who cannot afford the levies and would allow extra contributions to go directly into the schemes of those whose sponsors can afford a higher levy."
Livingstone said the need for levies to be made manageable is of "paramount concern" and there are fears it may need to rise even more sharply in the future. Professional Pensions, 2 April 2009
Punter Southall Pensions Bulletin - July 2010