Loss-making supermarket giant Tesco took a further step towards ending its defined benefit provision this week, as it began formal discussions to close to new members and future accrual.
Industry experts have backed the National Association of Pension Funds’ call for a long-term plan to protect savers’ interests, but question the viability of extricating pensions from politics.
Pension providers should cut costs by close to a third to capitalise on opportunities in the UK’s defined contribution market, a white paper has said, but consultants questioned the potential for new market entrants.
Any other business: Following a romp to all-time highs the FTSE 100 stuttered last week, with slips by multinationals and financials. More than ever, trustees must be engaged investors to ensure scheme decisions deliver good outcomes.
Communication company Manx Telecom eased the closure of its defined benefit scheme last year by providing members with a range of alternative defined contribution options, alongside a sharesave scheme.
The Financial Conduct Authority has issued a consultation on transfers out of defined benefit schemes, but experts say a disparity between definitions of money purchase benefits could lead to confusion.
Comment & Analysis
Bath Actuarial's Leonard Bowman discusses the nightmares that can keep trustees awake at night – including succession planning, disaster recovery and making the best use of 'trusted advisers' – and suggests some useful remedies.
Aries' Ian Neale gives a snapshot of where the small-pot consolidation project currently stands and points to where there could be further changes.
Talking Head: Lincoln's Tony Hobman gives a snapshot of the current state of play with the European IORP directive – and says we may be in for a wait.
Video: What unknowns remain on the cusp of April 6? National Association of Pension Funds' DC policy lead Richard Wilson, and partner at consultancy LCP Andy Cheseldine discuss what is left to do and how to manage expectations (5:36).
Video: Should the 0.75 per cent cap go lower? In part two of Countdown to April, Mark Futcher from Barnett Waddingham and LGIM's Emma Douglas explore how DC schemes are responding to reform (5:37).
Video: What effect are the flexibilities having beyond the world of DC? In the first of our three Countdown to April videos, JLT Employee Benefits' Mark Wood and Eversheds' Tim Smith explain how DB schemes are dealing with the knock-on effects of the reforms (6:08).