The Pensions Regulator says UK plc’s 130bn pension deficit could be paid off within 10 years with minimum disruption to the economy.It believes that up to 80 per cent of companies could realistically close their deficits without facing more than a 25 per cent reduction in their free cashflow. But the TPR’s reliance on FRS 17 and benefit buyout costs to gauge funding requirements has been criticised because it uses actuarial discretion to calculate deficits. Watson Wyatt senior consultant Nigel Bodie says the buyout cost for most schemes is unknown and would be expensive to ascertain. TPR strategic development director Charlie Massey also admits that FRS 17 is part- ially flawed because mortal- ity rates are not proscribed so can be adjusted to reduce liabilities. But a single proscribed technique would not work because of the different mortality profiles of different occupations. These assumptions will be the basis for the TPR’s red, amber and green grading system with red-rated schemes in need of regulatory intervention to potentially set accrual and funding levels. The colour rating of comp- any schemes will not be published. Massey says: “There are one or two weaknesses around FRS 17 because mortality is not proscribed but trustees have a fiduciary responsibility to flag any issues up to The Pensions Regulator.” Bodie says: “Continued use of the term buyout by the The Pensions Regulator gives trustees and members an unrealistic notion of the sec- urity of pensions.”
Friends Provident International has brought out Premier ultra, an offshore unit-linked bond aimed at high-net-worth investors.
Gerrard Investment Management has teamed up with structured product provider Woolwich Plan Managers to offer IFAs a structured product which has weighted exposure to four stockmarket indices depending on performance.
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2CG, a company founded in 2000 by former M&G head of continental Europe Charles Glasse and former Credit Suisse manager Christopher Garsten, has introduced the Zenith European income fund.
Ken Rayner and Graham O’Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio. The Artemis Global Growth Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]
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Three advice firms have stopped giving pension transfer advice following work by the FCA over the future of the British Steel Pension Scheme. A statement this afternoon details the FCA’s “information gathering exercise” to identify the firms that have been most active in advising people to transfer out of the scheme. The regulator got information from […]
The FCA has launched a consultation on its approach to authorisation and competition, which will be open to responses until March next year. Following the launch of the FCA’s mission in April, the approach documents are the second and third in a series of papers explaining how the watchdog tackles regulation. The first document, the […]