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The statutory funding objective will make or break db schemes says NAPF

The Pensions Regulators new statutory funding objective must be flexible and pragmatic enough to reflect the long term nature of pension scheme funding according to the National Association of Pension Funds .

In its response to the Pensions Regulators consultation on scheme funding, the NAPF says the objective will be a major factor as to whether employers will continue to support defined benefit schemes.

The Association agrees with the proposal to use triggers to identify schemes that require further scrutiny. But it questions the use of percentage of buy-out cost as a funding filter, and urges flexibility in the application of the ten year recovery period filter.

The NAPF proposes an alternative funding filter, based on the discount rate adopted for the funding plan, which it believes would approach the issue of funding strength and risk more directly.

NAPF chief executive Christine Farnish says: The Regulator has so far demonstrated its willingness to engage positively with the industry, and to take account of views and concerns of pension schemes and their sponsors. How scheme specific funding is implemented will be a crucial test of the regulators commitment to help ensure that remaining DB schemes are not further damaged by an over-zealous regulatory environment.


‘Lenders cannot ignore internet’

Lenders are being warned that they risk falling by the wayside if they ignore the internet. Pink Home Loans managing director Tony Jones claims that banks and building societies which fail to build technology that helps transactions for brokers will lose business. Jones says: “The internet is becoming increasingly important. It was nice to have […]

Frosty reception

Fishburn Hedges may have been able to hire the fancy Sway bar in the City for its Burns Night celebrations but left its ever-suffering staff to brave the Arctic conditions without coats after deciding that the cloakroom should be reserved solely for hacks while PRs were ordered to leave their outdoor attire in the office. […]

Cazalet says NPSS would see massive lapse rates

Lord Turner’s proposal for a national pension savings sch-eme will be blocked by the Treasury and the Bank of England and never get off the ground, says independent insurance analyst Ned Cazalet. In his Scottish Life-sponsored report, called, Polly Put The Kettle On – Pension Profit- ability, Cazalet says if the NPSS does go ahead, […]

‘Churning is killing profits for life offices’

Analyst Ned Cazalet says insurers spend too much money writing business which will promptly leave their books, meaning that they will make little or no profit. He says the ease in which intermediaries recycle poli- cies to earn more commiss- ion is destroying life office balance sheets. FSA data shows that almost half of all […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


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