View more on these topics

‘Employers should treat pensions equally with other priorities’

The Pensions Regulator has warned defined-benefit scheme sponsors that pension funds must be treated equally with other competing priorities when company assets are allocated.

The warning follows a statement from the regulator last week confirming that struggling employers would be given “breathing space” to pay back pension deficits over a longer period of time.

The TPR said: “The pension scheme should be equitably treated among the competing demands on an employer. Where cash is being used within the business at the expense of what otherwise would have been affordable pension contributions, it is important that it is being used to improve the employer’s covenant rather than benefits accruing disproportionately to other stakeholders.

“Most employers can afford appropriate dividend payments without prejudice to the funding of the pension scheme. However, if there is substantial risk to the likelihood of the pension scheme delivering the benefit entitlements promised within it, then dividend payments need to be reassessed in light of the obligations to the pension scheme and other creditors.”

The regulator rejected calls from some in the industry to incorporate an allowance for an anticipated improvement in economic circumstances within its technical provisions.

The technical provisions set out the amount of money required to cover a pension scheme’s liabilities.



Lenders hike NewBuy rates less than 2 months after launch

Lenders have increased the rates on products they developed for the Government’s indemnity guarantee scheme less than two months after its launch. Under the NewBuy scheme, which launched in March, lenders offer 95 per cent loan-to-value mortgages on new-build properties against a mortgage indemnity guarantee funded jointly by builders and the government up to 9 […]

NBNK targets Middle East backing for Lloyds bid

NBNK is looking to get backing from a number of sovereign wealth funds in the Middle East as it continues with its bid to acquire 632 Lloyds Banking Group branches. According to The Telegraph, Lloyds is understood to have concerns about the regulatory and financial footing at NBNK and has asked the bank’s chairman Lord […]

Portillion ends application

Portillion has withdrawn its FSA application and has decided not to pursue becoming a mortgage lender. Its Farnborough office has been closed and all 20 staff have been made redundant. It first planned to become a lender in 2007 when former GMAC-RFC chairman Stephen Knight revealed plans to launch Checkmate Mortgages. It rebranded to Portillion […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm