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.
Posts Tagged ‘NEST’
A miscellany of news
A couple of bits and pieces this week to blog about. First the recent decision of the European Court of Human Rights dismissing an appeal by expat pensioners that they had been discriminated against because their pensions had not been increased in the same way as pensioners who remained in the UK.
Pots, Kettles, Black…
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!!
Viking Sagas
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.
Great Talk, Hard Message
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.
Cuckoo in the Nest
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!!)
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: