Guide to Pensions 2017
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Transcript of Guide to Pensions 2017
Finance Directors' Guide to PensionsPensions have become an increasingly important and complicated area for companies that have a defined benefit pension scheme.
This guide looks at:DB Scheme Essentials Current Issues facing FDs2016 Pension Manager Survey Results
DB / OCCUPATIONAL SCHEME
ESSENTIALS
Occupational pension schemes take a variety of forms although they broadly fall into two categories, namely
defined benefit (DB) and defined contribution (DC)
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
Occupational pension schemes take a variety of forms although they broadly fall into two categories, namely
defined benefit (DB) and defined contribution (DC)
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
A wealth of legislation applies to occupational pension schemes
Occupational pension schemes take a variety of forms although they broadly fall into two categories, namely
defined benefit (DB) and defined contribution (DC)
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
A wealth of legislation applies to occupational pension schemes
DB schemes are set up under trust which ensures that they are eligible to receive certain tax concessions from the UK
Government.
While a scheme sponsor is solvent, benefits will continue to be paid out in full
to all pensioners
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/scheme-funding/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
Pension Trustees are also required to undertake and maintain a certain level of training (commonly referred to as
Trustee Knowledge and Understanding)
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
Pension Trustees are also required to undertake and maintain a certain level of training (commonly referred to as
Trustee Knowledge and Understanding)
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
The Pensions Regulator (the Regulator) is the UK regulator for all pension schemes made available to employees
Pension Trustees are also required to undertake and maintain a certain level of training (commonly referred to as
Trustee Knowledge and Understanding)
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/
DB / OCCUPATIONAL SCHEME ESSENTIALS
What is a DB scheme?
The Pensions Regulator (the Regulator) is the UK regulator for all pension schemes made available to employees
“More than a third of defined benefit schemes have recovery plans that exceed the ten-year limit set out in
guidance from the regulator”
CURRENT ISSUES
CURRENT ISSUES
"What are the topics we would be considering if we were the Finance
Director of a company with a defined benefit scheme?"
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/
CURRENT ISSUES
https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/06/27/uk-votes-leave-how-pension-schemes-can-cope-uncert/
The longer-term impact of Brexit on pension schemes has yet to be seen
CURRENT ISSUES
https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/06/27/uk-votes-leave-how-pension-schemes-can-cope-uncert/
The longer-term impact of Brexit on pension schemes has yet to be seen
Companies will also have a role to play in helping trustees understand the impact of 'Brexit' on the
business
CURRENT ISSUES
https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/06/27/uk-votes-leave-how-pension-schemes-can-cope-uncert/
The longer-term impact of Brexit on pension schemes has yet to be seen
Companies will also have a role to play in helping trustees understand the impact of 'Brexit' on the
business
Trustees and employers should seek to understand the risks associated with the UK leaving the EU
CURRENT ISSUES
https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/09/14/ppf-levy-third-triennium-proposals/
The PPF is once again considering the use of credit ratings to determine the insolvency risk for larger
employers
CURRENT ISSUES
https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/09/14/ppf-levy-third-triennium-proposals/
The PPF is once again considering the use of credit ratings to determine the insolvency risk for larger
employers
Large employers, regulated financial services entities and not-for-profit organisations could see material
changes to their PPF levies
CURRENT ISSUES
https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/
The PPF is once again considering the use of credit ratings to determine the insolvency risk for larger
employers
Large employers, regulated financial services entities and not-for-profit organisations could see material
changes to their PPF levies
The government introduced a range of legislative changes designed to increase the flexibility that
individuals have when accessing their pension savings
CURRENT ISSUES
"We expect uncertainty and volatility will dominate the coming months and years.”
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/
PENSION MANAGER SURVEY RESULTS
https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/keeping-date/hot-topics/
PENSION MANAGER SURVEY RESULTS
Pensions' issues that would currently be top of our agenda if we were the FD
of a company with a DB scheme
• 18% of DB scheme members have made changes to any existing lifestyle strategy
https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/
PENSION MANAGER SURVEY RESULTS
DB Pension Manager Survey:
• 18% of DB scheme members have made changes to any existing lifestyle strategy
https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/
PENSION MANAGER SURVEY RESULTS
DB Pension Manager Survey:
• 73% of DB scheme members can now take all of their AVC pot as a lump sum
• 18% of DB scheme members have made changes to any existing lifestyle strategy
https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/
PENSION MANAGER SURVEY RESULTS
DB Pension Manager Survey:
• 73% of DB scheme members can now take all of their AVC pot as a lump sum
• Around 1/3 of DB schemes have seen an increase in transfer valuation quotation requests
• 18% of DB scheme members have made changes to any existing lifestyle strategy
https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/
PENSION MANAGER SURVEY RESULTS
DB Pension Manager Survey:
• 73% of DB scheme members can now take all of their AVC pot as a lump sum
• Around 1/3 of DB schemes have seen an increase in transfer valuation quotation requests
• 70% of DB schemes surveyed do not currently allow any partial transfer of defined benefits
• 18% of DB scheme members have made changes to any existing lifestyle strategy
https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/
PENSION MANAGER SURVEY RESULTS
DB Pension Manager Survey:
• 73% of DB scheme members can now take all of their AVC pot as a lump sum
• Around 1/3 of DB schemes have seen an increase in transfer valuation quotation requests
• 70% of DB schemes surveyed do not currently allow any partial transfer of defined benefits
• Over 85% of DB schemes already offer trivial commutation
Finance Directors’ Guide to Pensions
CLICK HERE TO SEE THE FULL GUIDEIf you have a specific query that has not been covered in our guide, please get
in touch with our Corporate Consulting team.