A glimpse into the future of UK pensions
Alison Hatcher caught up with Asset TV, as she outlined the shift towards a market of “mega schemes” and the resulting governance challenges. Check out the interview below, where she argues for a new, collaborative mindset within the industry and a focus on acquiring the right skills for trustees to manage this transition and deliver […]
The future for professional trustees and their schemes
At the end of May, I had the pleasure and privilege to speak at Professional Pensions Live. The discussion centred on the future of trusteeship, a topic that has come up frequently since I joined Vidett. The Pensions Regulator (TPR) has set out a vision for the future and I am encouraged by its direction. […]
Assessing covenant reliability in an unpredictable world
Many have suggested covenant is now less important than what The Pension Regulator’s Defined Benefit (DB) Funding Code would imply. But in an increasingly volatile economic environment, it remains important for trustees to understand their covenant and the key drivers for employer health. Central to the Funding Code are the concepts of Covenant Reliability Period […]
SOS – Save Our Sponsor
A scheme sponsor in financial distress can shift a pension trustee’s world. In many instances an insolvency, or the threat of one, wouldn’t be on a trustee’s plan at all. There’s plenty to consider and action to be taken. Without the right skills and experience, a lot can potentially go wrong too. But there’s always […]
Death and pensions: easing the process after passing
In In the latest episode of our ‘Shaping Tomorrow’ podcast, this month host Clare Routledge welcomes Alison Coulson to part one of the show, ready to discuss an area close to her heart. Alison’s husband Neil sadly passed in March last year, so she reflects on the positives, challenges and areas that need improvement from […]
Has TPR woken up to university sector issues?
Last month, The Pensions Regulator (TPR) wrote to trustees of university sector pension schemes as part of their review of defined benefit (DB) schemes in the higher education (HE) sector. Most that were contacted will likely be asking themselves questions like “Why now?” and “What do I do?”. Timings wise, it feels quite late to […]
Mike Birch talks covenant with Isio
Earlier this month, client director Mike Birch was invited to guest on Isio’s latest webinar, alongside Matt Cooper (Head of Covenant Solutions, Isio) and Jill Forsyth (Covenant Specialist, Isio). During the 25m episode, the three discuss defined benefit (DB) pension schemes, as they look to better understand what The Pensions Regulator’s (TPR) updated covenant guidance […]
26 years on and feeling proud
This Thursday I am retiring after 26 years of continuous service, starting in administration with Punter Southall, then transferring in 2014 to the trustee business which merged with 20-20 Trustees to become Vidett 2 years ago. I recently heard Heather Small’s ‘Proud’ on the radio, the song asks “What have you done today to make […]
Beyond members: elevating communication in pensions
Careers in pensions: the old and new
When we started our careers in pensions in the 80s and 90s, the landscape was vastly different. Back then central Edinburgh and Glasgow were crammed with Scottish banks and insurance companies; so it was a bit of a no-brainer to start work in that sector. Although there has been huge consolidation in the financial services […]
Death-in-service: Inheritance tax & Budget impacts
Rachel Reeves’ Autumn Budget has aimed to “make the inheritance tax system fairer” by making changes to death-in-service rules and inheritance tax, such as adding tax to unspent pension pots. Will death-in-service payments paid via discretionary trusts be affected when the changes go into effect on 6 April 2027? How will you be affected? We […]
Is now the time for pension trustees and employers to act on scheme security?
For most defined benefit (DB) pension schemes, funding positions have never been better. This is a reason for action rather than complacency as the environment could change, certainly over the timeframes of DB schemes. Pension trustees should have a clear plan to take advantage of current positions. Setting and delivering a strategic plan is in […]
General code series #6 – reporting to The Pensions Regulator
The general code of practice was published by The Pensions Regulator (TPR) on 10 January 2024 and replaces 10 of the 15 current codes. With the arrival of the new code, governing bodies (trustees or managers) will need to understand the new practices for reporting to TPR, review existing processes and consider whether new policies […]
General code series #5 – will the general code improve member communications?
In short, no. But it might be a nudge in the right direction (for some pension trustee boards at least). Why do I say that? Well, the communications and disclosure section in the recently published General Code is not too different from that in the draft and there was very little that was actually new […]
General code series #4 – what are the administration requirements of the general code?
Pension administration has often been viewed as the ‘poor relation’ in the hierarchy of pension trustee relationships, but pension schemes exist to pay members their benefits in accordance with the scheme rules and a trustee’s key responsibility is to safeguard these benefits. So, perhaps it’s not surprising The Pensions Regulator (TPR) recognises pensions administration is […]
General code series #3 – the governing body: board structure and activities
The ‘governing body’, is a term introduced by the general code (the code) to add to an already broad landscape of roles and responsibilities! The code’s definition is as follows: ‘The governing body is responsible for running a scheme. Governing bodies may be trustees or managers of occupational pension schemes, or, in public service pension […]
General code series #2 – where to start?
As noted before, there’s plenty trustee boards can be doing now to begin the next stage of the pension governance evolution. There is time to get it right though, so the important thing is just to start! Pension trustees need to make sure any steps taken to comply with the code should benefit the pension […]
General code series #1 – the governance evolution
As a professional pension trustee I get to hear what a whole raft of scheme advisers are saying to trustee boards about The Pension Regulator’s (TPR) proposed new general code of practice and the related ‘effective system of governance’ (ESoG). At this time, it sounds like we’re dealing with a revolution. The problem is, regulatory […]
Navigating the pension maze: 10 predictions for 2024
As change ripples through the pensions sector, Gillian Graham shines a light on some of the key transformations companies, pension schemes, and trustees could expect in the coming year. With the landscape shifting rapidly, the value of professional trustees will become even more apparent. Appointing experienced professionals to guide your scheme through the uncertainties of […]
Cracking the code: don’t give up now!
The anticipation surrounding the general code of practice (the code), formerly known as the single code, has been met with delays and name changes, with its publication expected in spring 2023, which has not transpired. When the code is published it will be one of the largest changes in occupational pensions in decades and trustees […]
Simon Lewis welcomes Equality, Diversity and Inclusion guidance
Vidett Client Director Simon Lewis has been taking a closer look at The Pension Regulator’s (TPR) Equality, Diversity and Inclusion (EDI) guidance. In response to the TPR EDI guidance publication, Simon commented: “The Pensions Regulator and those representing the pensions industry have put together some excellent guidance, that should make all trustees and employers stop […]
Protecting DB schemes & their members
Many pension savers have lost out over the years due to a lack of proper protection of their pension savings. I started working in pensions several years after the Robert Maxwell scandal in 1991, where he stole £460m from the Mirror Group pension funds. Given the enormity of the sums stolen from the ‘Maxwell schemes’, […]
Dealing with distress – part two: radical surgery
So, your pension scheme sponsor is in distress and, having assessed the situation (see part one – keep calm & carry on), it is clear the employer cannot support both the scheme and continue trading. Insolvency is inevitable. It is just a matter of time… Time for a rescue attempt Although it may seem like the […]
Dealing with distress – part one: keep calm & carry on
One of the most difficult situations a pension trustee can face is where the scheme sponsor is distressed, meaning the risk of insolvency is high. Trustees owe a fiduciary duty to act in the best interests of pension scheme members but, as insolvency results in job losses as well as reduction in shareholder value, avoiding […]