guide to pensions 2017

Finance Directors' Guide to PensionsPensions have become an increasingly important and complicated area for companies that have a defined benefit pension scheme.

This guide looks at:DB Scheme Essentials Current Issues facing FDs2016 Pension Manager Survey Results

DB / OCCUPATIONAL SCHEME

ESSENTIALS

Occupational pension schemes take a variety of forms although they broadly fall into two categories, namely

defined benefit (DB) and defined contribution (DC)

https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/rules-and-regulations/

DB / OCCUPATIONAL SCHEME ESSENTIALS

What is a DB scheme?






A wealth of legislation applies to occupational pension schemes






A wealth of legislation applies to occupational pension schemes

DB schemes are set up under trust which ensures that they are eligible to receive certain tax concessions from the UK

Government.

While a scheme sponsor is solvent, benefits will continue to be paid out in full

to all pensioners

https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/scheme-funding/



Pension Trustees are also required to undertake and maintain a certain level of training (commonly referred to as

Trustee Knowledge and Understanding)









The Pensions Regulator (the Regulator) is the UK regulator for all pension schemes made available to employees






The Pensions Regulator (the Regulator) is the UK regulator for all pension schemes made available to employees

“More than a third of defined benefit schemes have recovery plans that exceed the ten-year limit set out in

guidance from the regulator”

CURRENT ISSUES

CURRENT ISSUES

"What are the topics we would be considering if we were the Finance

Director of a company with a defined benefit scheme?"

https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/

CURRENT ISSUES

https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/06/27/uk-votes-leave-how-pension-schemes-can-cope-uncert/

The longer-term impact of Brexit on pension schemes has yet to be seen

CURRENT ISSUES



Companies will also have a role to play in helping trustees understand the impact of 'Brexit' on the

business

CURRENT ISSUES



Companies will also have a role to play in helping trustees understand the impact of 'Brexit' on the

business

Trustees and employers should seek to understand the risks associated with the UK leaving the EU

CURRENT ISSUES

https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/09/14/ppf-levy-third-triennium-proposals/

The PPF is once again considering the use of credit ratings to determine the insolvency risk for larger

employers

CURRENT ISSUES

https://www.barnett-waddingham.co.uk/comment-insight/blog/2016/09/14/ppf-levy-third-triennium-proposals/


employers

Large employers, regulated financial services entities and not-for-profit organisations could see material

changes to their PPF levies

CURRENT ISSUES

https://www.barnett-waddingham.co.uk/comment-insight/research/2015/12/17/pensions-flexibilities-and-db-schemes/


employers

Large employers, regulated financial services entities and not-for-profit organisations could see material

changes to their PPF levies

The government introduced a range of legislative changes designed to increase the flexibility that

individuals have when accessing their pension savings

CURRENT ISSUES

"We expect uncertainty and volatility will dominate the coming months and years.”

https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/

PENSION MANAGER SURVEY RESULTS

https://www.barnett-waddingham.co.uk/finance-directors-guide-pensions/keeping-date/hot-topics/


Pensions' issues that would currently be top of our agenda if we were the FD

of a company with a DB scheme

• 18% of DB scheme members have made changes to any existing lifestyle strategy



DB Pension Manager Survey:





• 73% of DB scheme members can now take all of their AVC pot as a lump sum






• Around 1/3 of DB schemes have seen an increase in transfer valuation quotation requests







• 70% of DB schemes surveyed do not currently allow any partial transfer of defined benefits







• 70% of DB schemes surveyed do not currently allow any partial transfer of defined benefits

• Over 85% of DB schemes already offer trivial commutation

Finance Directors’ Guide to Pensions

CLICK HERE TO SEE THE FULL GUIDEIf you have a specific query that has not been covered in our guide, please get

in touch with our Corporate Consulting team.

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guide to pensions 2017

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