View more on these topics

TPR allows ‘breathing space’ over DB deficits

The Pensions Regulator has confirmed it will give employers with defined-benefit pension schemes “greater breathing space” to fill deficits.

Over the past year, the eurozone crisis and the Government’s quantitative easing programme have caused a spike in demand for UK gilts. As a result, gilts are becoming more expensive, depressing interest rates and reducing the return on pension fund investments.

In an interview with Money Marketing in February, TPR chief executive Bill Galvin vowed to ease the funding requirements on DB pension schemes.

In a statement published last week, the regulator confirms it will allow some employers to pay back pension deficits over a longer period.

The Pensions Regulator approves firms’ deficit recovery plans on an individual basis. The length of deficit recovery plans that firms agree with the TPR are based on a number of factors, including the financial strength of the sponsoring employer.

Galvin said: “Employers that are struggling have greater breathing space to fill deficits over a longer period. However, we will draw a distinction between this group and those cases where schemes are substantially underfunded and employers are able to afford higher contributions. In such cases, we will expect pension trustees to be taking steps to put their scheme on a more stable footing.”

National Association of Pension Funds chief executive Joanne Segars says: “It is good that the regulator will look sympathetically on employers that have experienced significant deficit increases by allowing extensions in recovery periods.

“However, as the negative growth figures this week have shown, the outlook for the economy remains highly uncertain and there is the possibility that more QE will unfold.”

Confederation of British Industry director of employment and skills policy Neil Carberry says: “This statement provides some useful clarity about what is expected of pension funds and employers when they come to repair deficits in their schemes.”


Old Mutual makes BNY Mellon hire following shake-up

Old Mutual has appointed BNY Mellon director of product strategy Celeste Dias to the role of head of product development. The provider has also announced that Omam UK chief operating officer Paul Nathan will become chief risk officer as part of the merger of Old Mutual Asset Management and Skandia Investment Group announced last week. […]

Paul Kennedy: Foreign-domiciled IHT issues

The Government will soon consult on the inheritance tax position of a UK-domiciled individual married to a foreign-domiciled spouse. While it is generally true that foreign domicile is a gateway to IHT savings, this is one situation where it can be a serious drawback. Throughout this piece, the terms “marriage” and “spouse” also refer to […]

Econ committee calls for wider and tougher tax on transactions

The European parliament’s economic and monetary affairs committee says a financial transaction tax should affect more trades, be harder to avoid and be implemented even if not all of the EU’s 27 member states agree to it. In September, the European Commission proposed imposing a tax of 0.1 per cent on bonds and share trades […]


Mervyn King admits BoE failings and calls for reforms

The Bank of England governor Sir Mervyn King has admitted the organisation could have done more to prevent the banking crisis and has renewed calls for reform in the troubled sector. Speaking at The 2012 Today Programme Lecture in London yesterday, King (pictured) said the BoE was not blind to what was happening in financial […]


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