It has been another couple of days of announcements in the ever-changing world of pensions.
While the focus lay on the Treasury’s publicity drive over its Budget 2014 reforms, European pensions authorities issued a consultation on the holistic balance sheet and the UK government a consultation on governance in local authority pensions.
Solvency II by another name?
Yesterday, the European Insurance and Occupational Pensions Authority issued a consultation on solvency for pension schemes, which looks at the holistic balance sheet and solvency requirements for schemes.
The European commission had previously pushed back the solvency requirements, however the consultation gives consideration to the value of employer covenant and how solvency requirements might be applied.
Source: EIOPA
While the focus lay on the Treasury’s publicity drive over its Budget 2014 reforms, European pensions authorities issued a consultation on the holistic balance sheet and the UK government a consultation on governance in local authority pensions.
Solvency II by another name?
Yesterday, the European Insurance and Occupational Pensions Authority issued a consultation on solvency for pension schemes, which looks at the holistic balance sheet and solvency requirements for schemes.
The European commission had previously pushed back the solvency requirements, however the consultation gives consideration to the value of employer covenant and how solvency requirements might be applied.
Source: EIOPA
The National Association of Pension Funds, which spent a huge amount of energy arguing against the holistic balance sheet proposal the first time around, were (not suprisingly) unreceptive.
NAPF ‘disappointed’ over Holistic Balance Sheet consultation. Read more: http://t.co/nCRQ6xoqMs#pensions
— NAPF (@NAPFnews) October 14, 2014A national advisory board for local govt pensions
The Department for Communities and Local Government yesterday also issued a consultation on governance of the Local Government Pension Scheme.
They are proposing a national scheme advisory board that would ensure local authority schemes in England and Wales are well managed. There are also proposals for each authority to set up a local pension board.
Source: DCLG
LGPS members for the 1st time in the history of your pension scheme you will have a legal right to representation on your pension funds!
— UNISON Capital (@WorkerCapital) October 13, 2014More (written) on the retirement reforms
And finally, chancellor George Osborne today confirmed details – which may or may not be new information according to whom you speak – on how members can access their savings.
He said that from age 55 people will be able to dip into their pension pots whenever they like, with the first 25 per cent tax free and the rest taxed at their marginal rate.
The announcement has been met with derision, with some saying it was simply a rehash of previous announcements and others arguing this has long been possible under phased drawdown.
@philbray73@Will_Robins@henryhtapper@CashQuestions Yes, but never wrapped in a simple product
— Alan Higham (@pensionschamp) October 14, 2014What is for certain is that yet more exposure for pensions change in the wider press will help spread the word about the flexibilities on offer and whether or not they are right for individual savers.
