Feb 22nd, 2010
by Jennie Kreser.
In the past, most of my blogs have been about the sorry state of the Defined Benefit pension scheme and its probable inevitable demise at the hands of poor regulation, economic circumstance and Government interference.
I thought this week then, it was time to look at the bright new future (which for these purposes is not the dreadful NEST) but the Defined Contribution or Money Purchase Scheme. This has for some time been the option of choice for employers who want to be seen to provide a decent workplace pension arrangement but without the downsides of costs and deficits which can grow to the size of the gross domestic product of a small country!!
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 25th, 2010
by Jennie Kreser.
I was reading the latest edition of Saga Magazine at the weekend (look – it was lying around on my parents’ coffee table alright – I am obviously far too young to have a subscription myself!!), and began reading the main article.
It contained various interviews with some of the great of the pension and age industry about what they would like so see as the next development in legislation or societal planning.
Jan 15th, 2010
by Jennie Kreser.
I went to an excellent talk by Lindsay Tomlinson the Chairman of the NAPF last night. The man talks a lot of sense. The main thrust of his speech was concerning the now certain death of the the DB scheme and the rise of DC and with it NEST eggs.
It is now an acknowledged truth I think (and so does he) that DB will be a creature of history within the next 10 years or so except within the public sector. That is not to say that there won’t still be legacy schemes in run off of course but the writing has been on the wall for them for several years, accelerated perhaps by recent economic events but certainly not helped by overregulation, poor investment choices and increasing longevity.
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 8th, 2010
by Jennie Kreser.
The Personal Accounts Delivery Authority has announced a near £400,000 rebrand of it’s new offering. Goodbye Personal Accounts (which did exactly what it says on the tin) and Hello to NEST or more accurately perhaps, the NEST Corporation.
I have it on very good authority that this has no connection to SMERSH, the KGB or white furry cats being cuddled by mad dictators (although I think I can just about see Tim Jones stroking one!!), but is instead the new name for the organisation which will oversee the Peoples’ Pension Scheme (my term, a bit Post Office ish but pretty good I thought!!)
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 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.
Nov 23rd, 2009
by Jennie Kreser.
Axa has announced that it is launching a competition to find a new name for “pensions” after a survey revealed that 18% of respondents associated it with “grey” and 72% of younger people associated it with old age. Well – d’uh…yeah!
It is perhaps this last statistic (or rotten lie -depending on your point of view) that is the most worrying.
The hard sad fact is that unless you have begun some sort of decent non-State pension provision by the age of 30, you are likely to retire in penury come age 65 (or 68, 70, take your pick).
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: