Jan 24th, 2011
by Jennie Kreser.
Slightly hidden away in the bowels of the Daily Telegraph comment section is a piece about Wedgwood Potteries. Sadly this wonderful British institution has faced financial difficulties in recent years and as a result, the pension scheme has had to go into the Pension Protection Fund in order to be rescued. So far so sadly usual.
But the Wedgwood Scheme was a multi employer scheme and one of the employers was the Wedgwood Museum in Stoke on Trent – completely independent of the pottery company itself but with 5 employees who were members of the main scheme. So the Museum became a participating employer as it was required to be. And this is where the whole things becomes a bit unfortunate.
Nov 12th, 2010
by Jennie Kreser.
TPR has issued its latest guidance on the very tricky subject of Employer Related Investments. Readers may know that for many years now there have been fairly strict limits on the amounts that a pension scheme can invest in the business of its sponsoring employers. In very simple terms, no more than 5% of the fund can be invested and there are complete bans on things like providing bank guarantees to the company.
Sep 14th, 2010
by Jennie Kreser.
Well back from my holidays and time to catch up with what’s been happening in the wacky world of pensions! The ‘honeymoon’ period of our current Coalition Government seems well and truly over and as we approach Conference season, the militants are flexing their muscles. Despite a new offer to their members, the BBC pension arrangements look set to provoke a strike by members of Unite and BECTU leading to the blacking out of the Conservative Meetfest.
Jul 5th, 2010
by Jennie Kreser.
One of the most amusing stories that has arisen in the past week (although it has a serious purpose) is the proposal that Diageo, the drinks conglomerate has come up with to try and solve its Final Salary Scheme funding deficit. As readers may know, when an actuarial valuation reveals a deficit, the law requires that the Trustees and the Employer get together to try to agree a cunning scheme to repair that deficit over a period of time. This is called a Recovery Plan.
Jun 14th, 2010
by Jennie Kreser.
Although it is really something of a statement of the bleedin’ obvious, PwC have recently issued a report which after extensive (and no doubt extremely expensive) research has concluded that Final Salary Pension Schemes will have ceased to exist within 10 years. This is not exactly ground breaking news to those of us within the Pension Industry who have been watching the death throes for several years now.
May 21st, 2010
by Jennie Kreser.
This weeks’ items – another massive bailout (potentially) and a oopsie by a pension industry ‘good guy’
First, the Coalition Government has announced it’s intention to sell off part of the Royal Mail. So far so predictable. The kicker in this particular tale is that the Royal Mail is currently sitting on an £8BILLION (yes you read that correctly, £8 BILLION!!!) deficit and that’s just what’s been revealed in the company accounts. The Actuarial Valuation results due soon are expected to show an even bigger deficit. This will not ordinarily make it a particularly attractive proposition for any potential buyer.
Apr 22nd, 2010
by Jennie Kreser.
Been a bit quiet on the pension front this week – must be something to do with some vote thingy going on in the country. Pensions seem pretty low on the politicians agenda (it’s that ‘too difficult’ basket again) so I thought this week I’d actually blog about a bit of law (shock horror!!)
The Outer House Court of Session (it’s a Scottish court for all you Sassenachs) has put the boot into the English once again over of all things, the equalisation of pension rights in schemes.
Apr 13th, 2010
by Jennie Kreser.
So, Readers Digest (or rather the pension scheme of course) has now entered the PPF Assessment process as was almost inevitable following the calling in of the Administrators in February. Readers of my blog will know that RD had been in discussion with the PPF prior to this in relation to its multi million pound deficit and came a cropper when TPR refused to accept a negotiated deal that would have seen an innovative resolution including a significant cash injection and a large equity stake in the US parent company being taken by the scheme trustees.
Mar 2nd, 2010
by Jennie Kreser.
Sometimes, its not just what you know…it’s who. The Pension Regulator has just found this out having been sent off with a flea in its ear by both the US and Canadian Courts in its attempts to enter the ‘world domination’ market by thinking – completely wrongly as it turns out – that it had jurisdiction in those countries.
The background is it’s attempt to make the overseas parent companies of the Nortel UK Pension Schemes to pay an additional contribution to cover the significant deficit. The US and Canadian courts have given permission for the overseas parent to ‘ignore’ the demand for £2.1 billion. Nortel is bankrupt by the way.
This is a preview of
It seemed like a good idea at the time…
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Read the full post (181 words, estimated 43 secs reading time)
Feb 17th, 2010
by Jennie Kreser.
In a mid week update to my Monday posting, Readers Digest has just announnced it is going into administration in the UK due to the size of the DB pension scheme deficit.
What seems to be most interesting in this case is that the parent company seems to have been in negotiation with the Pension Protection Fund about making payments to the scheme (presumably to ensure that the compromise it was contemplating would not prevent entry to the PPF should it be necessary). However, this ‘agreement’ did not meet whatever stringent test the Pension Regulator had in mind. Result – RD goes bust and the scheme probably ends up in the PPF anyway. Well done tPR – way to go!!
Jennie advises large multi-employer schemes as well as smaller single employer arrangements and has wide experience of both Defined Contribution and Defined Benefit schemes. Jennie qualified in 1986 originally as a criminal prosecutor. She sits as a Magistrate in her local justice area and is an Approved Chairman and Deputy Chair of the Bench Training and Development Committee. Jennie was formerly Legal Director of the Occupational Pensions Regulatory Authority. When her busy practice allows, Jennie likes to indulge her passion for travelling. To consult Jennie on any corporate Pensions matter, please call her on +44 (0)20 7749 2700 or send her an email by clicking below: