Feb 15th, 2010
by Jennie Kreser.
A small article in that must read magazine for all lovers of …er….furniture – Cabinet Maker – (and with thanks to ‘My Company Pension’ for pointing it out) really sums up the current parlous state of Defined Benefit pension provision in the UK today.
HJ Berry a Preston based furniture manufacturer, has gone into administration with the £9 million black hole in it’s pension fund being a major contributory factor in its insolvency. It’s 85 staff members are likely to find themselves without a job soon and while of course, there is the possbililty that their pensions will be protected to a large extent by the Pension Protection Fund, (assuming the scheme is eligible) nevertheless, the situation is symptomatic of the state not only of the pension universe but also of manufacturing industry in the UK in 2010.
Feb 8th, 2010
by Jennie Kreser.
Well, it’s not been the most exciting of weeks in the pension universe but I suppose the big story – well big for us pension junkies – is the announcement made by Angela Eagle that the Guaranteed Minimum Pension element of a pension will have to be equalised for men and women.
In fairness, she did state that this would only apply in respect of schemes falling into the Governments ‘junior’ lifeboat, the Financial Assistance Scheme, but there are few of us who believe that the principle will not be extended to the ‘big’ lifeboat, the Pension Protection Fund and from there to all schemes that carry GMP’s for their members, that is, those who contracted out of the second limb of the state pension arrangements.
Jan 12th, 2010
by Jennie Kreser.
The Conservatives have indicated that if the PPF ever faces financial meltdown due to increasing claims on its purse, were they to be in power, they would not bail it out. Brave words from the sidelines, but I wonder whether in reality they would be willing to face the wrath of the ageing electorate by pulling the plug on it were (for arguments sake) BA and a few other big players hit turbulence.
Jan 4th, 2010
by Jennie Kreser.
It wouldn’t be a ’start of the year’ without a few predictions so Mystic Jens has been gazing into her crystal ball and has seen the future…mind you, she was still a little the worse for wear at the time so please do not take any of these suggestions seriously…until they come true that is!!!
First, a bit of a no brainer – there will be even fewer Defined Benefit schemes by the end of 2010 than there are now.
The new Tory Government will announce a review of pension provision with particular focus on the Personal Accounts Regime due for introduction in 2011..er…2012…er whenever…!!
Dec 21st, 2009
by Jennie Kreser.
It has long been a bit of a joke in the pension world that BA is a pension scheme that occasionally flew a few planes. Well, many a true word spoken in jest it seems.
Although the immediate threat of a strike over the Holiday period has been averted, it is almost certain that a fresh ballot will produce the same result. What’s that got to do with pensions you may ask? The answer is painfully simple.
BA has a combined £3.7 billion black hole in it’s pension scheme funding.The law requires that the Trustees and the Company reach some sort of agreement on how that deficit is going to be dealt with by June 2010.
Dec 14th, 2009
by Jennie Kreser.
In last weeks’ posting, I said that I doubted the Chancellor would be able to keep his dirty mitts off pensions. I am sorry to report that I was right although even I didn’t appreciate just how underhanded he was going to be. Along with his annoucement that he was extending the restriction of tax relief to those earning effectively £130,000 (we already knew about the £150,000 limit) Mr Darling announced that he intended to raise the State Pension by 2.5%.
Much rejoicing in the Labour camp that at least pensioners – some of those most affected by rising prices and reducing benefits – would be winners in the budget merry go round.
Dec 7th, 2009
by Jennie Kreser.
In a ‘well who’d ever have thought it…’ kind of moment, the Confederation of British Industry (CBI) has announced that according to its research, final salary schemes are the cause of more misery for companies than…well…money purchase schemes.
For those of you who find the whole thought of pensions far too depressing and confusing (and let’s face it, that’s most of the population including several pension lawyers of my acquaintance!!) let me try and give a short guide to the difference.
Nov 17th, 2009
by Jennie Kreser.
First the good news is we are being told that the recession is over and the FTSE 100 has risen to over 5300 at at 17th of November. You would think then that pension scheme trustees would be expecting reducing deficits when their scheme actuary comes to look at the figures.
On the other hand, other observers are telling us that pension deficits could have been underestimated by nearly £270 billion, and far from things getting better, in reality the funding position of schemes is getting far worse. And it is beginning to effect not only defined benefit schemes but defined contribution schemes too are also showing severe underperformance.
This is a preview of
Don’t Panic – But it Could be Worse than You Think!!
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Read the full post (327 words, estimated 1:18 mins reading time)
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: