Increased at-retirement flexibility for defined contribution members introduced by the Budget may lead to higher member contributions, experts have predicted, which could put pressure on some employers' pension structures.
Engineering company Centek has so far seen its defined ambition-like auto-enrolment investment set-up outperform the underpin it created to guarantee a minimum retirement outcome for its workforce of uninitiated savers.
Lancashire Pension Fund has added lump-sum payments to its annual employer contributions to make up for reduced cash flow from a declining active membership.
Industry body Pensions Research Accountants Group, together with the Financial Reporting Council, has had initial discussions with the government on jettisoning out-of-date requirements for pension scheme reporting to make way for its own enhanced disclosure regime.
The NHS Pension Scheme will tailor its communication to different employer types to provide them with more support in fulfilling their obligations, after a survey revealed substantial criticism of its approach.
Defined benefit schemes are showing interest in synthetic equity strategies in order to move cash from growth portfolios to liability-matching strategies in an effort to shore up funding levels.
Comment & Analysis
The retirement flexibility brought about by the Budget has left many schemes wondering how to best implement the at-retirement options introduced.
Talking head: Steve Bee seeks to dispel concerns that a much higher proportion of auto-enrolled workers at smaller employers will reject their new benefit and so undermine workplace pensions reform.
The “saver’s Budget” sounded a starting bell in the frankly lethargic DC investment market – which default strategy would win the argument and, more importantly, the flows?
Video: Joanne Segars, chief executive of the National Association of Pension Funds, discusses the implications of last month's Budget on schemes, including its retirement guidance guarantee, in the latest edition of Policymakers and Decision-makers (5:12).
Video: Jeffrey Mushens, technical director at Tisa Exchange and James Markham, managing director of SBC Systems, talk about how technology can help schemes implement pensions consolidation, with both favouring a structure that places the burden on the receiving scheme (5:36).
Video: Sarah Smart, chair of the trustee board at the Pensions Trust, says its fiduciary management set-up has outperformed its target at lower risk than budgeted for, and explains how the scheme monitors this arrangement (5:56).
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