Edition 07 July/August 2018 Pensions Aspects WWW.PENSIONS-PMI.ORG.UK Secluded destinations
Exploring alternative investment strategies
GMP THE RISE FINANCIAL RECONCILIATION OF SELF GUIDANCE THE IMPACT ON SUFFICIENCY AND CLAIMS MEMBERS ACT 2018
Find your next job at www.pensioncareers.co.uk Edition July / August 2018 Edition July / August 2018
Features Acceptable in the 80s 04 Member benefits 06 The road less travelled 12 The rise of self sufficiency 14 Clearer, quicker, tougher 16 GMP Reconciliation, The impact on members 22 DWP’s White Paper 24 The DB to DC transfer debate 26 Financial Guidance and Claims Act 2018 27 Contents Diploma in Regulated Retirement Advice 28 PMI Exams 29 Regulars Editorial 04 Powers to protect pension savers 32 Membership update 08 RPI: the last rites or a rejuvenated measure News from the regions for pension increases? 37 18 Qualifications Taking on the PMI Qualifications 40 19
Events 10 Training 39 Services 41 Appointments 46 Directory
Contacts PMI news team HEAD OFFICE MEDIA ENQUIRIES T: 0207 392 7425 E: [email protected] The Pensions Management Institute, Floor 20, Tower 42, 25 Old Broad Street, London EC2N 1HQ EDITORIAL Chris Eyett T: +44 (0)20 7392 7401 E: [email protected] T: +44 (0)20 7247 1452 CORPORATE/DISPLAY ADVERTISING T: +44 (0) 20 7392 7425 E: Malcolm Dunn [email protected]
MEMBERSHIP T: +44 (0)20 7392 7410 RECRUITMENT ADVERTISING T: +44 (0)20 8405 6412 E: [email protected] E: [email protected] SERVICES DIRECTORY T:+44 (0)20 8405 6412 E: [email protected] QUALIFICATIONS/TRUSTEES T: +44 (0)20 7392 7400 E: [email protected] DESIGN SJW Branding & Communications T: +44 (0)1732 455555 E: [email protected] COMMERCIAL DEVELOPMENT T: +44 (0)20 7392 7425 PRINT Crossprint Ltd T: +44 (0)1983 524885 E: [email protected] E: [email protected] Published in the UK by The Pensions Management Institute FINANCE T: +44 (0)20 7392 7430 E: [email protected] Available free to PMI members
ISSN 2046-7605
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 03 Acceptable in the 80s Thirty years ago, providing information to members about their accrued rights was a simple matter. In an era where Defined Benefit (DB) coverage was the norm, schemes were required to provide details only under specific circumstances, such as leaving service, the submission of a transfer request or imminent retirement. Then – as now – there was no statutory requirement for DB members to be provided with an annual benefit statement.
This was not perceived as a problem, as Another constraint on but the right to withdraw applies there was no incentive for schemes to try promoting member at any time. Crucially with a and improve levels of member engagement. engagement was DC scheme, effective member technological. In an era engagement is absolutely Providing the benefit promise was the before the internet, providing necessary if members are to responsibility of the trustees alone and information for members appreciate the true value of required no active role on the part of the inevitably meant sending out their benefit and ultimately member. Apart from anything else, until paper documents. The costs achieve the goal of a satisfactory 1988, employers could make membership arising from drafting, printing retirement outcome. and posting documents made of the occupational scheme a condition The onus lies with trustees this process laborious and and manager to ensure of employment, and so members were expensive. With little obvious that members properly required to accrue a benefit even (for benefit to the scheme in appreciate the value of whatever reason) they might not have conducting such an exercise, scheme membership. Whilst it was obvious that many did wished to do so. the statutory requirements not bother. to provide an annual Benefit Statement and Statutory Money Today’s environment could By Tim Middleton, Purchase Illustration have not be more difficult. Today’s been in place for many years, a PMI Technical Consultant member is likely to belong to communications revolution has a Defined Contribution (DC) arisen via the internet. arrangement. He or she may have joined as a consequence of Online access to pension auto enrolment; active consent scheme information allows to join may not have been given, members to check – in real time
04 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK – current fund values. They can new employees into pension make fund switches, review saving, when competition scheme rules and consider Auto enrolment has been one of for scant employee financial transfer and decumulation the great success stories in the resources has been so intense, options. It may be possible to pensions industry in recent years. has been a significant success. model the impact of changes It would be a terrible failure to contribution rates or of if this success were to be bringing forward or deferring compromised by a myopic PwC established that younger financial commitment decumulation. Online approach to the importance members in particular required to improve employee information is extremely of successful member consider the option to manage engagement with pension empowering for members and engagement. pension savings online is saving, there is for many a plays a vital role in promoting particularly important. Failing lack of clarity as to how this member satisfaction. For DC to provide access to a form of might best be achieved. Many schemes, this is a crucially As is always the communication which younger lack an understanding of the important consideration. case with pensions, people consider the norm is associated technology and the a vision for the It is therefore surprising to a serious obstacle to effective benefits it can bring. learn that according to recent member engagement. longer term rather Auto enrolment has been one research as many as a third than a short-term Whilst PwC’s research suggests of the great success stories of employers sponsoring DC fix is absolutely that employers are prepared in the pensions industry in schemes have not provided to make the necessary recent years. Bringing so many necessary. online access to members.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 05 Member benefits Don’t forget to maximise your membership by making use of the benefits available to you:
Designatory Letters Discussion Forums PMI qualified members can use the designatory initials • PMI LinkedIn Group CertPMI, DipPMI, AMPI and FPMI after their names. The PMI LinkedIn group provides members and others involved in pensions and employee benefits to network and share information and News & Publications views. This is a private group so if you would We regularly release news and provide a range of like to join, please email the events team at publications, all of which offer valuable information to [email protected] keep both our members and those affiliated with the • PMI Fellowship Network LinkedIn Group PMI up-to-date with current pensions issues. – Fellow members only • PMI Technical News Fellows of the PMI can book to attend sessions PMI Technical News is our quarterly newsletter through [email protected] which is sent to all our professional pensions and The network provides Fellows with access to trustee members. It addresses, in depth, one discussion material from the Fellowship Network particular topic which is of current interest. meetings and the ability to network. • Pensions Aspects • Mallowstreet Pensions Aspects (formerly PMI News) is our The PMI has teamed up with mallowstreet, monthly magazine which is sent to members. the online community for the pensions and It features technical articles from professionals retirement benefits industry, to enable PMI within the industry; expert/investment insight members to participate in the discussion columns from our Insight Partners; latest news forums, blogs and other activities made from the PMI including qualification updates; available through their website. updates from the industry regulators; updates on consultancy and administration, actuarial and investment, and legal issues; information to To access the mallowstreet forums and blogs, support pension trustees; details on forthcoming PMI members will need to join mallowstreet PMI events, and news from our Regional Groups. (membership is free).
06 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK > PMI Continuing Professional Development (CPD) Scheme Although the recording of CPD is only compulsory for PMI Associate and Fellow members, the scheme and recording system are open to all. CPD is a key part of your membership Regional Group and by participating in our CPD scheme you will contribute to the development of the profession as a whole. Recording your CPD PMI has a network of 8 Regional Groups throughout demonstrates that you are working to ensure your knowledge the UK. Each Regional Group organises local seminars, and skills are up-to-date. talks and social events. In addition, they provide study support and advice to Students who are preparing themselves for PMI examinations. > Standard Life Investments Educational Portal PMI Qualifications Learning Gateway is a free and convenient way for PMI members to access up-to-date training that is relevant to The PMI is the UK’s leading professional body for your role. It is designed to address the specific training those working in the field of employee benefits requirements of investment professionals, and to help you and retirement savings. It supports and develops to achieve the level of knowledge required to meet your the experts who are responsible for running the investment and career objectives. It is simple to use and UK’s pensions industry and is acknowledged as the flexible enough to fit round your busy schedule for either body for establishing, maintaining and improving gap filling or ongoing training needs. professional standards in every area of pension scheme management, consultancy and trusteeship. The PMI is renowned for providing qualifications that demonstrate > PMI Trustee Group Seminars: free for all the knowledge and expertise of those taking them. PMI Trustee Group members PMI Trustee Group members enjoy free attendance at our twice- PMI Extra yearly trustee seminars, whilst other members pay a discounted PMI Extra contains cost-saving discounts and offers price to attend. This year PMI Trustees have been given an on a portfolio of everyday products and services, additional benefit and can attend the PMI Annual Lecture such as home insurance, hotel stays, gyms and on 12th September 2018. There are now additional benefits health clubs, Apple products, cinema tickets, and for entire trustee boards that join the PMI Trustee Group. office supplies and stationery. There is no sign- This includes the ability to sign up for collective training to be up process, and no extra charge to access these recognised by the PMI, and for trustee boards to be issued with a benefits; you are automatically eligible to access PMI Trustee Group Continuing Professional Development (CPD) these benefits by virtue of your membership. Certificate as an independent verification.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 07 Membership update
Continuing Professional Development (CPD) 2018 – 19 Membership Renewal Subscriptions Your completed 2017 CPD report was due on 31st January 2018. If Your membership renewal is due on 1st September 2018 and you have not completed your report, please do so now and submit it subscription renewal notices have been sent out to all members. to the Membership department. Fellows and Associates are reminded If you have not received your renewal notice contact the that meeting the PMI CPD requirement is compulsory (except where Membership Department at membership@pensions-pmi. retired/non-working). Members are required to record at least org.uk or on 0207 392 7410. 25 hours. Please log on to the website and update your CPD record.
Members with outstanding CPD have been notified to complete and submit their CPD to the PMI Membership Department. Direct Debit Failure to comply will result in the withdrawal of their As an incentive to use the Direct Debit facility and to help designatory initials FPMI and APMI. members spread the cost of annual subscriptions, for the 2018/19 subscriptions payable on 1st September, for all members except Affiliate members, you can pay your subscription over three months PMI Fellowship Network Sessions (1 Sept, 1 Oct, 1 Nov). Alternatively, you can pay your subscription The next London Fellowship Network Session will take place on as a single annual payment by indicating this on the mandate you Thursday, 12th July at PMI Office to discuss Collective Defined received with your renewal notice. Please ensure your completed Contribution (CDC): Direct Debit form is sent to the membership department by Friday • Would CDC deliver tangible benefits to savers compared with 17th August, 2018. other models?
• Does this risk creating extra complexity and confusion? Would Obituary savers understand and trust the income ‘ambition’ offered by CDC? We are saddened to hear that Stephen Masamba DipPMI recently passed away. The session will be hosted by Gillian Graham, FNA (PS Independent Trustees Limited), and Martin Lacey, FNA (Royal Mail). CDC Specialist, Kevin Wesbroom, will also be in attendance. APPT Renewal APPT renewal notices have been emailed to members advising If you are a Fellow and would like to attend, please register them that they must renew by 1st July 2018 at a cost of £200. Please your interest by contacting the Membership Department at ensure that your 2017 CPD reports have been submitted to the PMI [email protected] or on 020 7392 7410. Membership Department in preparation for your renewal. PMI Membership Upgrade Waiver The Board has decided to allow all future qualifiers after each Membership Record exam to upgrade their membership without the appropriate Please ensure that your personal details are correctly updated on election fee. The invitation to upgrade letter will be posted together the PMI database to ensure that there is no interruption to your with your results indicating a three-month window in which to membership service. If you require a reminder of your username/ upgrade your membership. Members wishing to upgrade after password to log in and check your details, please contact the the end of the waiver period will be required to undertake the membership department at [email protected] usual process which requires the upgrade fee plus the annual or on 020 7392 7410. subscription at the appropriate rate. For further details contact the Membership Department at [email protected] or PMI Trustee Group Scheme on 020 7392 7410. The PMI extends a warm welcome to: • IBM UK Pension Trust Limited Diploma Membership • Cambridge Colleges Federated Pension Scheme Diploma membership is open to those who have completed one of • Volkswagen Pension Scheme our qualifications at the Diploma Level; for more information please • Nationwide Pension Fund see the PMI’s website. We are pleased to announce that Tatyana • The Cheviot Trust Pension Schemes Hicks and Fiona Whtye-Smith have been elected bto Diploma who all joined the PMI Trustee Group Scheme recently. Membership and can now use the designatory initials DipPMI.
08 PENSIONS ASPECTS / JUL-AUGJUNE 2018 2018 WWW.PENSIONS-PMI.ORG.UK Fellowship Congratulations PMI Fellows! Following the recent promotional campaign in April and May 2018 allowing Associates to climb the PMI ladder without paying the usual upgrade and election fee, we are pleased to announce that approximately 200 eligible Associate members took advantage of the offer. They have now been elected to Fellowship and are entitled to use the designatory initials FPMI.
Stuart Allen Lyn Anne Clay Julie Halligan Rachel Longsden Alexander Perman Mark Andrews James Colegrave Paul Harris Isabell Lotz Kelly Phillips Phil Anthony Andrew Coles Christopher Hayes Christopher Lyons Emma Pilley David Appleby Martin Condon Paula Hendry Louise Mackie Nicola Plummer Jacqueline Archer Stephen Cooper Rachel Hewlett Paula Maguire Thomas Pook Sarah Austin Rachel Croft Richard Hill Kim Mairs Christopher Potts Timothy Banks Peter Croucher Hazel Hinde Stephen Mann Thomas Prime Hazel Bloomfield Wendy Davies David Hosford Andrew Marshall Gemma Pugh Margaret Boate Edward Davies Lynn Housecroft Timothy Mason Mark Pugh Daniel Bowman Omaira Deen Phillip Howden Deborah Mather Sandra Pugh Christina Bowyer Christopher Deeson Helen Hughes Calvin Matthews Martin Ralph Carol Bradshaw Danny Dowd Katie Hulbert Charles Matthews Simon Redfern Janet Branagh Jonet Dunmore Daniel Hulbert Fiona McCartney Helen Redman Katie Brassington Caroline Eastwood James Hutson Andrew McGowan John Reid Jacqueline Bretnall Matthew Elguezabal Nuala Jackson Stuart McLean Derick Riddell Pamela Broadhead Shona Fleming David Jacobs Mary McLeod Stephen Rideout Mark Brown Mark Fox Rebecca Jaques Christopher McNay Ian Roylance Richard Bryant Mark Frankland Nathan Jones Stephen McPhillips Tina Rushworth Joanne Buchanan Joanne Franklin Jemma Jurgenson Deborah McWhinney Catherine Russell Geoffrey Buck Michael Franks Donna Kellett Alastair Meeks Judith Sambrook Nicholas Burdett Helen Frisby Hazel Kendrick Zoe Mills Joanne Sargant Nigel Butt Anthony Frith Kevin Kenneally Valerie Milne Robert Sauer Guy Bysouth Cyril Gaffney Susan Kettle Paula Morton Peter Scott Andrew Callis Lisa Garner Antony King David Noakes Ian Scott Neil Campbell Isobel Garside Ian King Paul Ian Noone Richard Seymour Irene Campbell Andrew Gibson Helina Kuberek Wendy Norton-Round Elizabeth Shanks Margaret Carruthers Charles Gould Olga Lafon Robert Orr Karl Sidebottom Philip Casson Katalin Grantham Corinne Lawson Catherine Palmer Carlos Simoes Kanon Chalcraft William Green Stuart Lee Richard Parker Andrew Smith Hai Ying (Fiona) Chan Jane Gregory Andrew Leslie David Parker Roger Stenner Caroline Cheetham James Hacker Colin Liddell Janet Parrington Keith Sully Lucy Clark Andrew Hale Joanne Linley Colin Pennycook Christopher Symonds Marina Clarke Richard Hallam Gwyneth Lloyd Stephen Perera Susan Tate
Certificate Membership Associate Membership Certificate membership is open to those who have completed Associate membership is open to those who have completed one of our qualifications at Certificate Level. For more information the Advanced Diploma in Retirement Provision qualification. For please see the PMI’s website. We are pleased to announce that the more information please see the PMI’s website. We are pleased following people have been elected to Certificate Membership and to announce that Carole Weir has been elected to Associate can now use the designatory initials CertPMI: Membership and can now use the designatory initials APMI. Sara Bird Emma Guyers Robert Jones Matthew Lindsay Stewart Nairne Sukie Perera Sekani Simpson Elizabeth Smith Adrian Wedgewood Simon Mulima
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 09 Events
DIARY DATES
Wednesday 12th September 2018 THE DATESAVE Wednesday 19th September 2018 PMI ANNUAL LECTURE INTRODUCTION TO UK PENSIONS, LONDON
We are pleased to announce that the 2018 Annual Lecture Wednesday 31st October 2018 will be held on the 12th September at: INTRODUCTION TO UK PENSIONS, LEEDS JP Morgan, 60 Victoria Embankment, London, EC4Y 0JP This introductory workshop is designed for those with Our 2018 speaker will be Tim Harford, a world-renowned behavioural little or no previous pensions knowledge. Our panel will go economist, award-winning Financial Times columnist, and BBC through the essentials of the pensions industry, touching broadcaster. on core areas that those starting out in the industry need to This event will count as one hour of CPD. know, as well as answer any questions that you may have. This event is free for PMI members to attend. For further details, please contact Events.
Monday 17th September 2018 Wednesday 7th November PMI WORKSHOP, SECRETARY TO TRUSTEE PMI ADMIN SUMMIT: Following the previous cancellation of this event, the PMI is happy THE FUTURE OF PENSIONS ADMINISTRATION to confirm that this has now been rescheduled for the The Future of Pension Administration is a must attend event 17th September at Taylor Wessing. for in-house pension schemes, pension trustees, and finance This event will provide the opportunity to share experiences and directors who want to keep up-to-date with the latest best gain insight into how others carry out the role of the Secretary practices and trends, meet industry influencers, advance to the Trustee effectively. Come along to learn more about their careers, and find solutions to some of the industry’s managing conflicts, trustee effectiveness, preparing and most challenging concerns. The conference will also provide monitoring an effective risk register, and working effectively a greater networking opportunity for trustees, administrators with the Chair of Trustees. and pensions scheme managers.
Topics include: Early bird price of £250 for members and £300 for non- + The role of Secretary to the Trustees: effective meeting members (until 31st August 2018). preparation/best practice at and post meeting + Preparing and monitoring an effective Risk Register + Working effectively with the Chair of Trustees + Effective Minute Writing Register your interest in any of our listed events + Regular Annual Activities by emailing [email protected] + Trustee Effectiveness Full details of all our events can be found on our + Effective Complaint Handling website, along with all our booking forms. + Managing Conflicts of Interest + Development of Meeting Management
Members £255.00 Non-members £355.00 All prices displayed exclude VAT.
10 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK Secluded destinations / The rise of self sufficiency / Clearer, quicker, tougher
Secluded destinations
Exploring alternative investment strategies Continue reading on pages 12 -16
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 11 Secluded destinations / The rise of self sufficiency / Clearer, quicker, tougher
The road less travelled alternative investment strategies
What does that have to diversify their portfolio, and I recently moved house and for my morning do with pension scheme reduce their reliance on commute to the train station, I continued to investments, you may ask? traditional assets. use the route I was familiar with. It was not Well, most pension schemes until recently that someone told me about have identified their long- Two strategies an alternative route to the station. Yes, it term objective, whether that we think are was a B road and slightly more complex to is buyout or self-sufficiency, and a direction of travel to appealing from navigate but it was a much more pleasant reach that objective. a strategic drive, involved less traffic and, more perspective are importantly, was a quicker commute to the However, many schemes’ investment strategies infrastructure station. There was nothing wrong with my continue to focus on the equity and original route but my comfort and familiarity use of traditional asset private credit. with it meant that I had not considered an classes, or those which are alternative... until it was pointed out to me. familiar, in order to achieve Infrastructure refers to large- those objectives. Whilst the scale systems; services and performance from traditional facilities that are necessary assets has been strong over for economic activity. The Jeffrey Malluck of Aon looks at the benefits of the past few years, the outlook assets are associated with some alternative investment approaches. is less compelling. the provision of public goods In our opinion, there are and essential services. They currently attractive alternative tend to have monopolistic investment opportunities characteristics and high which pension schemes should barriers to entry, which should be considering as part of mean their performance is their overall strategy. These less impacted by economic opportunities can improve the conditions (although there is likelihood of schemes meeting no guarantee of this). Examples their long-term objective, include airports, renewables,
12 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK telecommunication networks This opportunity Funds specialising in this asset Pension schemes have been and utilities. class tend to target net-of-fee on an interesting journey has arisen returns ranging from 3% for over the past decade. Whilst For pension schemes, following the new lower risk senior loans, to the they continue to navigate infrastructure equity has a bank regulations low teens for higher-yielding the numerous challenges number of characteristics loan strategies. ahead in order to reach which we believe makes implemented their destination, we would a compelling case for its in response to We believe the attractiveness encourage schemes to consider inclusion within portfolios. the last global of private credit strategies the alternative approaches Whilst past performance is not relative to other traditional financial crisis. available which may help reach a guide to the future, these assets include high potential that destination sooner. There characteristics included steady returns, income generation to Many companies relied on are many roads one can take cash flow generation, low meet cash flows and, increased banks for borrowing but, as but, as the poet Robert Frost correlation to other traditional diversification. banks have reduced lending, said, ‘Two roads diverged in a asset classes, and an attractive institutional investors like Infrastructure and private wood and I – I took the one less risk-return profile. We believe pension schemes have the credit strategies are not travelled by, and that has made that the return expectation opportunity to capture without their risks, and all the difference’. for infrastructure is around enhanced returns by providing schemes should be aware 7% per annum over 10 years finance in private markets. of these before investing. which, we feel, is favourable Jeffrey Malluck is a senior on a risk-adjusted basis There is a wide range of For example, both strategies within this area, investment consultant at compared to a range of fixed of these strategies income, equity and other from loans which are secured, Aon. To read more of our alternative strategies. Private backed by, say, an underlying are less liquid thinking on investment credit is another area that property, or that rank high in than traditional strategy, visit www.aon. offers a unique and compelling the company’s capital structure public market com/investmentuk investment opportunity and therefore benefit from assets. In addition, to pension schemes due better recovery rates than manager selection traditional bond investments, to its attractive risk-return is essential. characteristics and the to higher risk strategies which income it provides. target a higher level of return.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 13
Secluded destinations / The rise of self sufficiency / Clearer, quicker, tougher
The rise of self sufficiency
Scott Edmunds, During a period of record low interest rates, the objective of achieving Senior Investment a 100% funding status seemed, at best, elusive, with the days of Consultant, recording a pension scheme surplus appearing to have been firmly Quantum Advisory relegated to the pages of history for many pension schemes.
Unsurprisingly, the main focus for trustees historically has been There are obvious advantages to getting to this position, achieving their scheme’s primary funding objective i.e. to reach primarily: 100% funding on a technical provisions basis. This implies an investment strategy that delivers a reasonable degree of investment Reduced risk and an increased likelihood of meeting outperformance during, and indeed after, the recovery period and benefit payments as and when they fall due: is used to set sponsor contributions. This isn’t a surprise given the Fully funded status based on self-sufficiency assumes only a large deficits that many pension schemes have been plagued by. marginal degree of future outperformance from investment strategy, allowing greater investment in liability matching assets. However, we’ve witnessed a shift recently. Whilst the primary These assets can be tailored to meet benefit payments, reducing objective is still used to set contributions, investment strategy is the likelihood of underperformance and a worsening of the increasingly set by a secondary objective; typically to become fully funding level. funded on a self-sufficiency basis. In our experience, the target of self-sufficiency varies according to scheme circumstances; the Benefits for the scheme sponsor: common theme is that any scheme that becomes 100% funded The reduced risk of material investment underperformance means in this way should be in a position to substantively reduce risk that any impact of unexpected deficit recovery contributions within their investment portfolio, so that the impact of under- is unlikely to be substantive; this frees the sponsor to build its performance has a minimal effect on the sponsor. business, providing reassurance for all interested parties in the future. This more challenging secondary objective might appear counter intuitive. However, strong performance from risk assets over the With this in mind, it makes sense that schemes thinking about past several years, coupled with recent rate rises, has meant that the end game (whether it is buy-out, buy-in etc.), consider self- many pension schemes now find themselves in a reasonably well sufficiency as a staging post. Indeed, where the cost of buy-out funded position. Trustees and advisors have rightly been asking is truly prohibitive, achieving self-sufficiency may be a sensible the questions “where next?” and “how do I protect these gains?” solution itself to the pension risk problem. Following 2007 and all the difficulties that ensued, trustees know only too well the consequences of not correctly balancing risk and Of course, in order to savour the long-term return within investment strategies, and the dangers of taking their benefits of self-sufficiency a number of eye off the longer term prize (whether this is self-sufficiency, buy- short-term challenges must be met. out, buy-in etc).
14 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK
The following issues will all need to be considered: Liability profile and cashflow issues: For small and mature schemes, or those which experience a deluge Recovery plan periods: of transfer requests, cash flow can be unpredictable. This suggests Pension schemes will need to give careful consideration to the caution in scheduling investment risk, and requires adequate recovery period assumed for achieving self-sufficiency. Too short planning for unexpected or large scale events. a period may result in excessive investment risk being adopted initially. Too long a period may result in higher returns being sought when visibility of risk is poor; don’t forget it is easier to In conclusion, self-sufficiency might represent either predict 2019 than 2029! A balance clearly needs to be struck. an attractive staging post on the path to buy-out or even a sensible end game in itself; but simply deciding Dynamic de-risking strategies: to go for it is not a magic bullet. Pension schemes will The concept of a trigger-based dynamic de-risking strategy remains need a clear plan for managing the introduction of a appropriate. However, an alternative to turning up the investment secondary funding objective to ensure it does not unduly risk dial at outset is to turn it down at a slower pace over time. compromise the primary funding objective. The issues This strategy may be particularly appropriate for those pension detailed above make it apparent that the key to success schemes with clear, longer-term visibility of the sponsor covenant. lies in: (i) understanding the interaction between the primary and secondary funding goals, and the trade-off Additional sponsor contributions: between covenant and investment risk; (ii) understanding Whilst sponsors might baulk at the cost of buy-out or buy-in, the tension between cost control and risk aversion; they are often willing to pay some extra contributions for the (iii) establishing a clear governance framework around reassurance that self-sufficiency provides. Sponsors seem what should be done, when and how; and (iii) remaining surprisingly open to this discussion, especially when a spirit dynamic and capitalising on opportunities as and when of collaboration is clearly evident. At the end of the day, they may arise. However, for all of the potential issues the sponsor is likely to remain a pension that introducing self-sufficiency as a secondary objective scheme’s best friend. involves, the option to achieve a fully funded position that is reliant on a low risk investment strategy is attractive for sponsors and trustees alike.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 15 Secluded destinations / The rise of self sufficiency / Clearer, quicker, tougher
“Clearer, PENSIONSAge quicker, WARDS tougher:” 2019 no more softly, softly, catchee monkey at TPR?
In the short term, the increased media, public and political interest However, it is not an increased budget, her four-year contract, in February a bigger frontline team or a new set 2019. Her eventual replacement will 6th Annual Pensions Age Awards in pensions has made us all more of powers that convinces me that TPR have a clear mandate: lead TPR to interesting at dinner parties. But, will be taking a clearer, quicker and pursue a much more interventionalist, once that has passed and we return tougher approach in the future. and possibly aggressive, strategy. to the status quo of being met What convinces me, and what should If you are still not convinced, look at DEADLINE FOR ENTRIES: 2 November 2018 with glazed over eyes when we tell persuade you, is the seemingly tectonic TPR’s most recent Compliance Report. people we work in the pensions shift in the political pressures that TPR Gala Dinner and Ceremony: 28 February 2019 industry, will there be any longer now faces. We have swung away from Over 25% of the fixed lasting effects as a result of this a climate which saw the Government and escalating penalty London Marriott Hotel, Grosvenor Square recent peak in interest? announce in the Autumn Statement notices that TPR has 2012 that it was “determined to ensure that defined benefit pensions issued in the last 48 The Pensions Regulator (TPR), certainly wants us regulation does not act as a brake on months were issued in to think so. Perhaps that is unsurprising given investment and growth”. the first three months the scrutiny and the flavour of the criticisms it has faced in recent times. It has told us We, and TPR, are now in a climate in of 2018. repeatedly, in various forums, that it is, or is which TPR must respond to the Work Of course, the latest round of AE working to be, a clearer, quicker and tougher and Pensions Select Committee’s staging will have had an impact on this. regulator. But are we convinced? findings that TPR’s interventions Celebrating excellence within the UK Pensions Industry – organised by Pensions Age Nonetheless, from our experience, are “feeble”, it has a “tentative and TPR certainly appears to be gearing up to from the anecdotal evidence, and from apologetic approach” ingrained in ensure that “clearer, quicker and tougher” goes the actions (not just the noises), from Overall Sponsor Institute Partner its culture, and that they are “far beyond a mere slogan: it’s Corporate Plan for TPR, we should all assume that softly, from convinced that TPR’s current 2018-21, released in May, confirms that it has softly, catchee monkey is no longer the leadership is equipped to effect obtained a bigger budget, it is ploughing more name of TPR’s game. [required] change”. of this budget into its frontline regulatory team, and it is seeking wider powers. At the end of May, the current Chief Executive of TPR announced that she Aaron Dunning-Foreman, will be stepping down at the end of Associate, Sackers LLP For the latest news and updates follow us:
16 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK @PensionsAge #PensionsAgeAwards
PA-Awards-PMI.indd 1 20/06/2018 16:44:55 PENSIONSAge
WARDS2019
6th Annual Pensions Age Awards
DEADLINE FOR ENTRIES: 2 November 2018 Gala Dinner and Ceremony: 28 February 2019 London Marriott Hotel, Grosvenor Square
Celebrating excellence within the UK Pensions Industry – organised by Pensions Age
Overall Sponsor Institute Partner
For the latest news and updates follow us: @PensionsAge #PensionsAgeAwards
PA-Awards-PMI.indd 1 20/06/2018 16:44:55 News from the regions
[ Midlands region ] [ Eastern regional news ]
The popular half-day conference was held on Following an excellent buffet and our short AGM at Mills 13th June in central Birmingham. The conference & Reeve’s fabulous Botanic House offices in Cambridge was sponsored by Gateley Plc and we thank them (with lovely views from the sixth floor), we enjoyed for their support. a panel debate on DB to DC transfers. The panel was ably chaired by Lesley Carline, Vice President of the Bob Campion from Charles Stanley provided a very PMI, and our eminent panel comprised Clare Grice, entertaining presentation on ‘risk made simple’, partner and head of the pensions team at Mills & Reeve, followed by an update on liability management options Andrew Cohen, a local IFA, and Naomi L’Estrange, an from Barnett Waddingham’s Chris Hawley. The ever independent trustee at 2020 Trustees and former entertaining Robin Ellison provided some very interesting Director of Legal at the PPF. insight on the Carillion pension schemes. Bob Coppage gave us the latest on developments and plans at the PMI. Clare gave the legal background which was a useful reminder for us and then Naomi and Andrew looked at A short break was followed by Tom Meyrick of Eversheds some of the more practical aspects. Lesley said Andrew Sutherland who reminded us all that GDPR did not almost had her in tears as he demonstrated just how end on 25th May. Finally there was a hot topic panel much work an IFA has to do to advise on such transfers! discussion, hosted by Nick Stones of Pinsent Masons. There were mixed feelings as to whether a transfer value Panellists Emma King of Eversheds Sutherland, Andrew should be shown on every retirement quote, whether Allsopp of Quattro Pensions and Keith Lewis of PTL gave such transfers really are a good idea for many and if their expert opinion on current pensions developments. partial transfers should be allowed. There was no great Thank you to all of the presenters, Barnett Waddingham disagreement between our panel members, but they felt for the fantastic organisation and to Gateley Plc. their own stance tended to change depending on how they felt on the day. Communication in a way the member can understand really is key. We could say a lot more, but hope this is enough to tempt you to come to one of our future [ Southern region ] seminars! They are also a great opportunity for networking.
We completed our 2017/18 year at the offices of Willis Towers Watson, Reigate with a presentation and discussion around Medically underwritten buy-ins. This was led by Prash Mehta from Just.
An excellent presentation was reflected by the level of engagement from the audience and the events overrun.
Prior to the event we held our 24th AGM. This saw the committee grow back up to its maximum number of twelve. At the same time Clair Hood was appointed the Our next afternoon seminar is planned for new Chair for the Group. We wish Clair every success as 30th October in Norwich and the one after that will we move into our 25th year. probably be in late February 2019 in Ipswich. If you wish to be added to our distribution list, Our programme for the coming year will be available in please contact Susan Eldridge at early September, but if you are interested in becoming a [email protected]. member please contact Clair - [email protected]
18 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK Qualifications
Advanced Diploma in Retirement Provision Diploma in International Employee Benefits The following candidates have completed the Advanced Diploma The following people have completed the Diploma following the examinations of the Pensions Management Institute following the April 2018 examinations: April 2018 examinations: Agnieszka Harrebye Sorensen Philippa Badley Jennifer May Balazs Kaposvari Marcin Balawender John McCawley Lyudmyla Moncalvo Stuart Briely Derek McCormick Ciona Murray Jenifer Goodchild Malina Miller Rosemary Nantambi-Amiri Alison Hay Colin Minty Jennifer Owen Christopher Hughes Jennifer Owen Carina Schuetz Katie Lambert Philip Persson Christiane Ward Jane Le Pla Liam Scarfe Kelsey Marriner Mark Smith Rachel Marston Laura Webb Diploma in Retirement Provision The following people have completed the Diploma following the April 2018 examinations:
Diploma in Employee Benefits Marcus Allen Darren Morrison and Retirement Savings Daniel Blackman Christopher Nightingale The following people have completed the Diploma following the Joanne Carr Michael Peters April 2018 examinations: Matthew Coleman David Revell Ruth Cresdee Steven Robinson Philippa Badley Christopher Hughes James Duggan Kevin Shiel Claire Barnes Richard Ingham Joseph Durnford Mark Smith Daniel Bracey Kimberley Longhurst-Hill Annabelle Hardiman Kevin Stempien Stuart Briely Simon Magee Drew Henley-Lock Ashley Temple Lauren Cochrane Rachel Marston Katie Lambert James Walters Cassie Davis Stephen Rowland Michael Lee Alexander Wells Alice Fletcher Nicole Sullivan Kurtis Lingham Mathew Witherwick Jenifer Goodchild Saara Vernalls Yoram Lustig Stephen Graham Lucie White Alison Hay
Diploma in Regulated Retirement Advice The following people has completed the Diploma following the April 2018 examinations: Natasha Markanday
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 19 Qualifications
Carol Perry FPMI, Chair of the PMI’s Lifelong Progression structures Learning Committee, and Anne Harper, PMI’s Director of Lifelong Learning, are We are currently writing a draft set of pensions professional working together on PMI’s review of its standards. Our researcher is working with some of the leading lifelong learning offer. It spans professional fellows in the PMI to create a consultation document that will be standards, Continuing Professional shared with learners, members, fellows, employers, study support Development, accreditation and endorsement, partners, stakeholder organisations, regulators, and complementary apprenticeships, qualifications, examinations professional bodies worldwide. We will be asking for your comments, and assessment. Their mission is to review, suggestions, amendments and additions to the document itself, and revise, revamp, and re-launch the PMI’s for your support in encouraging as wide a response as possible. By Carol Perry (top) learning products and services to members, stating and sharing our standards we believe that we are advancing Anne Harper employers and stakeholders. our ambition to be the recognised, authoritative voice for the (below) pensions and lifetime savings sector. Professional standards, once finalised, will be the yardstick by which we can measure everything from qualification and membership levels to training needs analysis PMI Qualifications Review for organisations; they will inform series of masterclasses, continuing The review of the qualifications began in 2017. Key findings from professional development programmes, and how we accredit that, and subsequent meetings with employers and learners, external learning offers from employers, educational establishments included a shared desire to: and other professional bodies. • create a clear progression structure • promote the qualifications offer more widely • retain a senior level ‘jewel in the crown’ Promoting the qualifications more widely • encourage and support apprentices and apprenticeships The qualifications that PMI currently offers are robust, demanding and nowhere near as widely offered and understood as the PMI • reduce the amount of handwriting in examinations. would like. PMI is striving to become the learning and development
partner of choice for professionals and their organisations. To do this What follows is a brief update on each of these areas, showing how our current and emerging offer has to be widely known and used this work supports the PMI’s five key objectives: across the sector. 1. To be the recognised authoritative voice for the pensions This summer we are highlighting some of our qualifications (see and lifetime savings sector ‘featured qualifications section’), with a strong focus and a desire to 2. To be the learning and development partner of choice for succeed, learners could enrol for, study towards, be examined in professionals and their organisations and, if successful, achieve a professionally recognised qualification 3. To be active across the UK and have international reach before the end of 2018. We have extended our enrolment deadline 4. To have an impact on economy and society to August 14th but would advise learners to sign up and get working on their studies as soon as possible. We will be profiling the 5. To be financially strong, efficient and successful employer qualifications on our website, with accounts from previous successful of choice. learners, and briefing PMI members and contacts on how and where these qualifications might best serve them, their teams and their employers. Featured qualifications * Retirement Provision Certificate * Certificate in DC Governance * Award in Pension Trusteeship * Certificate in Pension Scheme Member Guidance * Diploma in Regulated Retirement Advice
20 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK Qualifications
The jewel in the crown Apprentices and Apprenticeships Holders of the Advanced Diploma are rightly proud of their PMI was part of the trailblazer group for apprenticeships in the achievement. It is one of the toughest series of examinations financial sector. By the end of 2018 some of our first group of available and is demanding in the extreme for the learners, their apprentices will be ready for end point assessment by the institute, employers, and their families. The Advanced Diploma takes years and recognition of their achievements. The apprenticeship offer of study, hard work and application, and, just when you thought means employers can create new ways of recruiting, retraining, and you’d mastered the topic, the legislation changes. Advanced developing their staff. The potential impact on economy and society Diploma holders are active across the UK. Think of those who have of the PMI and pensions organisations generating a dialogue with opted to undertake the Diploma in Regulated Retirement Advice schools, careers advisors, parents and young people on pensions as as part of their advanced diploma and are now Financial Conduct a career of first choice, and indeed the value of pensions to the long Authority recognised Retail Investment Advisors, and internationally, term saving strategy of the individual, and the investment strategy particularly those who have acquired the Diploma in International of the UK, is significant Employee Benefits. Apprenticeship funding can as readily be used to build the capacity The Advanced Diploma will remain the pinnacle of success for of current employees as it is for new recruits. PMI is about to apply pensions professionals. During the review of our lifelong learning to become the end point assessor for the level six (equivalent a post we will be looking to ensure that we have developed challenging graduate degree level qualification), financial services apprenticeship and supportive structures that will increase the breadth of talent for pensions professionals. Winning this recognition will require a entering and succeeding in our sector, with the necessary drive huge amount of work across the PMI, however the benefits with and determination to undertake the advanced Diploma. Over the respect to reputation of the organisation and increased diversity coming months we will be working with advanced diploma holders, of membership will be the true signals of success. examiners and supporters, to ensure that our qualification continues to be demanding and future focussed, enabling holders to possess the blend of technical and professional skills that will keep them at the top of their game.
Handwriting in examinations We will be: Since joining the PMI in January 2018, Anne Harper has met with • extending the enrolment deadline to August 14th employers and learners across England, Wales and Scotland (she • working with centres to ensure that they have the necessary was snowed out of Northern Ireland), when learners were asked bandwidth to support the transition the question what would you change about the examinations? The near unanimous answer was “get rid of the requirement for • Operating a 'dual fuel' system for those who cannot go handwriting”. As learners pointed out, no employer expects them online to take the exams to arrive in the office at 9am and write non-stop until midday. • commissioning city centre examination suites for The desire to adopt a less antiquated, more up-to-date way of independent learners. demonstrating knowledge, understanding, and the ability to Moving to an automated system will of course have an impact on process information, was overwhelming. the PMI’s team too. We will be moving away from a multi-staged Following negotiations we are now able to offer the current and largely manual process of printing, multiple postage, secure autumn 2018 series of examinations to learners online, rather management of the examination papers, storage of the leaners’ than paper-based. results, statistical analysis allowing the PMI to be financially strong, more efficient, and a more up-to-date place to work.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 21 GMP Reconciliation The impact on members
Most schemes will be well advanced with Underpayments • Deaths/transfers: most trustees starting point is likely their GMP reconciliation projects, and many I suspect that most trustees to be ‘let’s do nothing’ and I trustees will feel they have already had to would prefer to deal with a have a lot of sympathy with that case where a member has make some difficult decisions regarding but unfortunately there is no been underpaid rather than setting tolerance levels and whether to legal basis for it. That said, in overpaid, but they may still my view, a pragmatic approach accept or decline HMRC’s figures. But as face some tricky legal issues. can be adopted. Death cases, many schemes move into the rectification The starting point is that all for example, will be harder to phase, the hardest part is still to come. Most underpayments should be deal with the more that time trustees at some point will have dealt with made good, irrespective of how has passed. Trustees may small they are. While this will a case where a member has not been paid therefore decide to only try to be relatively straightforward for their correct benefits, but past experience rectify in respect of members members still in the scheme, who have died in, say, the last doesn’t make the decision about how to it does create some difficult two years. rectify this any easier. questions about what to do in relation to members who have • Interest: it may be that the died or transferred out. And scheme rules require interest to then there is the question of be paid on any underpayments, Faye Jarvis, Partner, whether to pay interest on the in which case no decision needs Hogan Lovells underpayment. to be made. But very often the rules will be silent on this issue
and so trustees will need to
decide whether to pay interest
and, if so, at what rate.
22 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK Overpayments Does the member Limitation Member simply refuses to pay There is an ongoing legal The trustees’ right of While it is easier to be more have to repay? debate about whether the recoupment is subject to section pragmatic in relation to cases So far, so straightforward, ability to recover overpayments 91 of the Pensions Act 1995, as where members have been but does the member have a is subject to a six year limitation it is a form of set-off. Section 91 overpaid, trustees need to defence to the trustees’ claim period, meaning any payments states that the right to set-off ensure that they adopt a for repayment? made more than six years ago cannot be exercised “unless consistent approach and so it cannot be recovered. In the the obligation in question has is worth coming up with some Change of position case of GMP reconciliation become enforceable under an principles at the outset about The most common defence claims, there could be many order of a competent court”. how overpayment cases will be relied upon is known as the members who could benefit In the Burgess case, the High dealt with. For example, trustees ‘change of position defence’. from a six year cut-off. Court held that a decision by could decide to: Broadly, to be able to establish the Ombudsman was not “an this defence the member would In the case of Webber v • reduce members’ pensions order of a competent court”. need to demonstrate: Department of Education and going forward but not This means that if the member another (2016), the High Court seek to recover any past • they were unaware of the won’t accept the Ombudsman’s held that the six year limitation overpayments, or overpayment decision, the trustees may period would apply. However, have to seek an order from the • they changed their position in the recent case of Burgess • only recover overpayments County Court before they can i.e. they have spent the v BIC UK Ltd (2018), the High above a certain level, as the make any deductions from the overpayment and would Court held ‘recoupment’ was “an cost of trying to recover small member’s pension. overpayments is likely to be not have done so had equitable self-help remedy” and disproportionate they known they were not the Limitation Act does not apply For those members who are no entitled to it, and to claims for equitable relief. A longer entitled to any benefits The easiest way to recover helpful decision for trustees from the scheme because, any overpayment is to make • the change of position but it does not end there. for example, they transferred deductions from future is irreversible. out, but their record was not payments of pension, known Whilst a limitation period may updated and so a pension as ‘recoupment’. Trustees will not apply, a little known legal was subsequently put into need to ensure that any such Whether a concept called the ‘doctrine of payment (it happens!), recovery deductions are made over member has a laches’ could still prevent the is even more difficult if the a reasonable period. Based trustees from recovering the change of position member refuses to pay. In these on Pensions Ombudsman overpayment. Key elements to defence will be circumstances, the trustees the ‘doctrine of laches’ are delay decisions, a good rule of thumb very fact specific. only real option for recovery and detrimental reliance, both is that the deductions should is to sue the member which It is for the of which a member may be be made over a similar period can be a very costly and time member to argue able to demonstrate in relation to the period over which the consuming process. overpayment was made. that they have to a claim for overpayments as such a defence a result of GMP reconciliation. An alternative option is to not A clued up member could So you could say award any future pension and to provide therefore turn a straight increases until the amount of evidence in that the hard work forward claim for recovery of pension in payment reflects is only just beginning support of it. an overpayment into a very what the member is actually complex legal debate. when it comes to entitled to. GMP reconciliation exercises.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 23 DWP’s White Paper: A Public Sector Pensions Perspective
Mark Shaw (GAD - DWP advisor Private Pensions) CHAPTER ONE: Chris Morley (GAD - HMT Protecting private pensions; a stronger Pensions Regulator advisor Public Pensions) This chapter is about strengthening the regulatory framework and powers of the Pensions Regulator (TPR). In particular it proposes:
In recent times we have all seen analyses + giving TPR the power to issue punitive fines contrasting the golden world of public sector + introducing a criminal offence for company directors that pensions with those of a frugal private sector. deliberately put their pension schemes at risk At the Government Actuary’s Department (GAD), we are uniquely positioned to think + strengthening the existing notifiable events and voluntary clearance regime in relation to corporate transactions and about the connections between these worlds. This allows us to bring an extra dimension to + strengthening TPR’s information gathering powers. pension policy debates. Here we explore the One of TPR’s statutory objectives is to protect members’ benefits. recent DWP White Paper Protecting Defined The proposals in this chapter are intended to help TPR meet this Benefit (DB) Pension Schemes,’ which sets out objective, especially where employers wilfully put members’ benefits the government’s policy intentions regarding at risk. The public schemes are established in statute so issues around certainty and security of benefits differ. However the importance of the DB private pensions sector across four good governance and administration applies to both private and public main chapters: schemes. TPR seeks to raise standards in these areas and its current initiative ‘21st Century Trusteeship and Governance,’ is focussed on circumstances where it feels standards currently fall short. In 2015 the 1. Protecting private pensions: a stronger Pensions Regulator governance arrangements of the public schemes were overhauled and 2. Improving the way the system works: scheme funding TPR were given a new statutory oversight role for these schemes. consolidation 3. Improving the way the system works: Whilst the proposals in this chapter are only intended to cover 4. British Steel Pension Scheme and other live areas private schemes, we are seeing a trend towards a more proactive, tougher regulator and this trend could be seen in all areas of TPR’s work going forwards. Speaking recently at a pension industry We focus on the first three chapters, which cover sector wide policy, conference, TPR indicated that its latest annual survey had found and consider how the DB private sector issues translate to DB public “a number of gaps around good governance” in relation to the public sector schemes. schemes. As well as scheme governance, the White Paper recognises the importance of scheme financing to ensure schemes maintain sufficient assets to pay benefits.
24 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK CHAPTER TWO: CHAPTER THREE: Improving the way the system works; scheme funding Improving the way the system works; consolidation
This chapter seeks to enhance the existing private scheme funding This chapter encourages the consolidation of pension schemes, both regime and TPR’s ability to enforce standards through a revised code through existing, and innovative new, commercial consolidators. of practice that scheme trustees will be required to comply with. Consolidators are offered an accreditation regime and an Schemes will require a chair who will be responsible for reporting to authorisation regime is proposed for new ones. These regimes TPR on key decisions regarding the funding of the scheme’s benefits. can then give members and employers more confidence which Private schemes are required to fund prudently and this chapter will hopefully catalyse increased consolidation. proposes further guidance from TPR to help trustees understand Where consolidation is allowed to break the link between schemes and demonstrate a prudent approach. and employers, members should be compensated with more In the public schemes, employer contributions are generally set using certainty over their benefits. This also allows sponsoring employers a best estimate approach, not including any margin for prudence to focus on core business. These outcomes are welcome especially (or optimism). For example, the discount rate used to determine where trustees have legitimate concerns regarding the long term employer contributions in these schemes (known as the ‘SCAPE rate’), viability of their sponsor. is set as a best estimate of future GDP growth. This means that today’s The vast majority of public scheme members belong to a handful employer contributions as a share of current GDP are expected to of very large unfunded schemes, so fragmentation issues and match the cost of the associated pensions as a share of future GDP. consolidation possibilities are much more limited in scale. When So, one interpretation of intergenerational fairness; each generation consolidation does happen the objectives are primarily focussed pays its own share. on efficiencies of scale. One exception to the public schemes best estimate approach is the A recent example was the civil service scheme absorbing various local government pension scheme (LGPS). The LGPS often finds itself smaller public schemes as part of the 2015 reforms of all the public caught up between public scheme approaches stemming from their schemes. This included House of Commons, House of Lords and statutory establishment, and private scheme approaches which stem lighthouse staff schemes. from holding funds to finance benefits. Whilst prudence makes LGPS funding levels appear lower than best estimate, it can reduce the On a much bigger scale a major program is currently underway in the risk of more volatile employer contribution rates and the potential LGPS to consolidate the assets of the 90 funds in England and Wales for rising contributions in the future. So, another interpretation of into 8 pools. Going forward these 8 regulated fund management intergenerational fairness; earlier generations pay more than their share entities will eventually run almost all of the LGPS assets, leaving as they are exposed to less risk. However you interpret intergenerational individual funds to decide asset allocation and focus on other areas fairness, improving governance and funding standards increases the of pension scheme management. likelihood of members receiving their full benefits. The objectives of LGPS pooling are: achieving benefits of scale, There are around 6,000 schemes in the private sector, with a improving governance and decision making, reducing costs, and significant proportion having less than 100 members. Such improving capacity to invest in infrastructure. These are clearly fragmentation can make it difficult for TPR to regulate the sector different from benefit security objectives and the LGPS pools are not and ensure schemes are well managed. Greater consolidation could breaking links with employers. However, some of these objectives be a catalyst for improved standards of governance whilst allowing again bridge public and private schemes and the LGPS experience more effective regulatory oversight and providing savings for schemes could help inspire wider consolidation across the private sector. through economies of scale.
Two connected pension worlds Despite differences between public and private sector pension schemes they both seek to provide members with their benefits when they are due. The policy changes proposed in the White Paper aim to improve the system and increase the likelihood of members of private sector pension schemes receiving full benefits. On governance, administration, and consolidation, there are lessons the public and private schemes can share to improve member outcomes and enhance schemes’ cost efficiency.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 25 The DB to DC transfer debate By Lorraine Harper, PMI Vice President, Co-Chair of PMI Trustee Group
On 24th May, the Pensions Expert, and it proved to impact and personal risks. take advantage of some of the be a very lively evening with the Members often under- flexibilities without giving up all anticipated PMI arguments well presented and estimate how long the money guarantees, it is only viable for debate took place, reasoned by both sides. The key will last and how long they those with large pension values. kindly hosted by points for the motion were: might live Before the debate commenced, Redington in London. • it is a legitimate option and • it would be better to mention the PMI invited members of We were hopeful of a sponsors would be failing the option but not quote the the audience to vote and the lively evening given in their duty if they do not value, then, if a member is results were: that our 70 places inform members interested, he/she can request a separate quotation. In this Voting before the debate were sold out within • no sponsor or trustee can way members are less likely to 36 hours of invitations know the individual situations be seduced by large numbers Undecided of every member so are in being released by into making a transfer, and (6) email, and we had a no position to judge whether such a transfer would be to • the values vary enormously For long waiting list for Against a member’s advantage or from scheme to scheme; (21) (16) cancellations. detriment. Trustees should they are not automatically a The motion was, “This house instead inform members and good deal. As a result, this believes that trustees and point them toward advice and is potentially another mis- sponsors of pension schemes guidance, and selling scandal in the making Voting after the debate putting members at risk of should not be afraid of • there are scenarios where unscrupulous criminals and advertising members’ rights members might feel moved jeopardising their wellbeing to transfer benefits from DB to sue trustee boards for non in retirement. Members who to DC schemes.” disclosure of this option. For Against For lose out could seek to sue (20) (23) Speaking for the motion were example, if an individual was trustee boards in the future Steve Webb, Director of Policy, seriously ill and believed that on the grounds that the risks Royal London and former he and his family would have were not properly explained. Minister, and Hugh Nolan, been better off taking the Director at Spence & Partners transfer value had he been The members of the audience and President of the Society aware of the option comprised a mixture of trustees, Although the ‘For’ camp won the of Pension Professionals. and amount involved. pensions’ managers, consultants day, the majority of those who and retired members. There had been undecided, supported Speaking against the motion The main arguments presented were many questions from the the ‘Against’ camp. were Tim Sharp, Pensions against the motion included: floor that clearly demonstrated Policy Officer at the TUC, and The PMI would like to thank the • the amounts can be very a mixed range of opinion. The Jeannette Holland, Head of moderator, all our speakers, large and members may subject of partial transfers was Pensions at Baker McKenzie. those who took part, and our be tempted into taking the raised from the audience and host, Redington, for creating a The debate was chaired by transfer without properly it was noted that although this very successful and interesting Angus Peters, Associate Editor, understanding the potential presents an opportunity to evening.
26 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK
Financial Guidance and Claims Act 2018 John Wilson, Julian Rowe, New single financial guidance body will provide Head of Technical Senior Consultant free and impartial pensions information JLT Employee Benefits
+ A money guidance function across the UK to provide free and The Financial Guidance and Claims Bill has finally impartial information and guidance designed to enhance received Royal Assent, providing for: people’s understanding and knowledge of financial matters and their ability to manage their own financial affairs. + The creation of a single financial guidance body to replace Pension Wise, the Pensions Advisory Service and the Money + A consumer protection function to notify the FCA where it Advice Service becomes aware of practices carried out by FCA-regulated persons which it considers to be detrimental to consumers, + Regulations to be introduced to ensure members have and to consider the effect of unsolicited direct marketing on received appropriate pensions guidance before transferring consumers of financial products and services. or accessing flexible benefits + A strategic function to develop and co-ordinate a national + Regulations to be introduced to ban pensions cold-calling. strategy to improve the financial capability of members of the public, their ability to manage debt, as well as the provision of financial education to children and young people. The new single financial guidance body, whose name is yet to be determined [names on a postcard, please], will replace The Act gives a new power to the Secretary of State to make Pension Wise, the Pensions Advisory Service and the Money regulations requiring trustees to ensure that a member or survivor Advice Service. The single financial guidance body will be a applying to transfer or access flexible benefits is referred to non-departmental public body sponsored by the DWP and appropriate pensions guidance and is provided with an explanation will have the following functions: of the nature and purpose of such guidance. Before proceeding with the application, the trustees must ensure that the member + A pensions guidance function across the UK to provide free or survivor has either received the appropriate pensions guidance and impartial information and guidance on matters relating or has opted out of receiving such guidance. The guidance will be to occupational and personal pensions. As part of this function, provided by the new single financial guidance body. the single financial guidance body must provide information and In consequence, trustees will need to amend their communications guidance for the purposes of helping a member of a pension to signpost members to the new single financial guidance body, scheme, or his/her survivor, to make decisions about what to do which is expected to begin operations in Autumn 2018. Trustees with the flexible benefits (broadly DC or cash balance benefits) will also need to change their processes to ensure members are that may be provided to the member or survivor. referred to appropriate pensions guidance before transferring or accessing flexible benefits. The industry will no doubt be + A debt advice function in England to provide free and monitoring early customer experiences of the new guidance impartial information and advice on debt. Provision of body. Overall, Pension Wise was shown to provide high levels debt advice in Scotland, Wales and Northern Ireland will of customer satisfaction for those who used the service. be delivered through the devolved authorities and funded by a levy on the financial services industry.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 27
Diploma in Regulated Retirement Advice
Natasha Markanday Lead Associate Retirement, Is the Diploma right for me? Willis Towers Watson • If you want to become regulated by the FCA I am a consultant at Willis to give pensions and investment advice to retail clients, including pension transfer Towers Watson and have been advice, then yes! in the pensions industry for nearly eight years. I’ve recently • If you want to further your career and ultimately get to the stage where you have passed the Diploma in Regulated your own portfolio of clients and you are Retirement Advice and have providing them with advice, then yes! provided a few points on the • If you already have a solid pensions Diploma which you may not foundation and want to undertake additional know about. qualifications to increase your knowledge and competence, then yes! What is the Diploma in Regulated How long will it take? Retirement Advice? • Studying for the Diploma was tough at • The Diploma in Regulated Retirement Advice times. Some of the material is very technical. consists of two exams. This qualification is However, it just takes hard work, dedication recognised by the FCA so, once complete, you and perseverance. There’s also lots of help are on the road to becoming a recognised FCA and support if you do get really stuck. regulated financial adviser. • There are only two exams in the Diploma, • Before completing the Diploma in Regulated so you could decide to sit one exam at a Retirement Advice, I sat the Advanced Diploma time and become an FCA regulated financial in Retirement Provision exams, on the (wrong!) adviser within a year, or, if you really set your assumption that completing these would mind to it, there’s no reason you couldn’t allow me to provide regulated advice to retail sit both exams at the same time and be clients. If I’d have known that I would have only regulated before the year is out! had to take two exams and sit the Diploma in Regulated Retirement Advice I know which option I would have chosen! Good luck!
28 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK My name is Peter Ainsworth and I work for the Data Solutions team for Equiniti Paymaster in Reading. I have been working towards PMI Exams the PMI Advanced Diploma.
From my experience the first thing I devised flashcards, which I carried around with I would suggest is to check if you’re me to learn. I copied notes from the manual entitled to an exemption. I found and pasted these into tables in Word. I laminated these and fixed them all out that the QPA qualification together with a treasury tag. I obtained whilst working for Sedgwick Noble Lowndes in The second thing I learned was that writing notes was not working; Birmingham, (Hi to those guys who reading and understanding is better, used to work with me in Tricorn and in silence. Read and re-read house), meant that I did not have to and understand. Also, the testing of take the first exam and I have a nice yourself on all the STQ, mocks and Certificate in Pensions Examination previous exams creates pathways in into the bargain; bonus! your brain and the more times you practice the stronger these pathways become. First exam – the beast - Regulation of Retirement A final suggestion is exercise; try walking Provision. First attempt October 2016. I tried whilst using the flashcards. It's enjoyable the old method of reading and making notes, and the endorphins released stimulate whilst listening to music. I did this all through my the mind. summer holidays; I have two kids and worked before they got up. It was hard work, it took a I passed both exams in October 2017: long time, and it did not go in. I can make notes what a feeling! Like nothing on earth. I felt without thinking about them. When it came to on top of the world, with tremendous the exam there were too many questions I did confidence for the next exam: Financing not know enough about and I failed. and Investment for Retirement Provision. This was quite fascinating, and So I tried again. The thing about having kids is very well written. I actually enjoyed the you can never be seen to give up! I worked out reading and learning, and passed this this time that I needed to visualise the whole one in April 2018. So, now I am taking syllabus in my head so I made mind maps of the DB Arrangements and actually looking entire course and had lots of lovely yellow post forward to it! it notes on my wall; it looked like a scene from American Psycho! I took the exam in April 2017 In my role for Data Solutions in Equiniti, and was sure I had passed; so sure, that I applied we are running on campaign to improve for the next one, Running a Workplace Pension data www.Equiniti.com/WeSeeMore, By Peter Ainsworth, Scheme. But I had failed and now had two exams it reminds me that taking exams is just Pensions Consultant, to take in October 2017. processing data in the manuals and Equiniti converting it into accurate data on the I needed a new solution. I had realised two page with the minimum of errors. things. Firstly, the course has lots of lists to learn.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 29 12529 Pensions Agenda-London-Aspects_PMI 29/06/2018 09:01 Page 1
Introduction to UK Pensions
Wednesday 19 September 2018 - London
10:00 REGISTRATION AND COFFEE 10:30 Chairman’s Introduction Lesley Carline, Director, KGC Associates and PMI Vice President 10:40 Setting the Scene Lesley Carline • Essential jargon • Parties involved in a pension scheme • Types of Trustee 11:10 Pensions Law Speaker from • Role of lawyers – Company v Trustee Squire Patton Boggs • Complaints and the Ombudsman • Recent legislation and on the horizon 11:40 Design of Trust Based Pension Schemes Julian Mainwood, • Defined benefit Partner, Barnett Waddingham • Defined contribution • Retirement benefits • Early leavers • Ill health benefits • Death benefits 12:10 Pension Administration Paul Couchman, • Role of the administrator Managing Director, Premier • Calculating benefits • Communicating benefits • Data 12:40 LUNCH 13:20 Member Engagement Karen Bolan, • Disclosure Head of Engagement, AHC • Advice v guidance • New communication channels 13:55 Pension Scheme Funding Andy Nichols, • Role of the Actuary and Investment Consultant Consultant, Retirement and • Contributions Investment, Aon Hewitt • Investments • Actuarial valuation 14:25 CONCLUDING REMARKS AND Q&A
Hosted at the PMI FEES Floor 20, Tower 42, 25 Old Broad Street, London, EC2N 1HQ Members £109.00 + VAT CONTACT DETAILS Non-Members £163.00 + VAT T: 020 7392 7427 • e: [email protected] 12529 Pensions Agenda-London-Aspects_PMI 29/06/2018 09:01 Page 1 12531 Trustee Workshop-ASPECTS_PMI 29/06/2018 09:53 Page 1
Introduction to UK Pensions Secretary to Trustee Workshop Monday 17 September 2018
Wednesday 19 September 2018 - London Event Schedule
10:00 REGISTRATION AND COFFEE 9:00 REGISTRATION AND COFFEE 10:30 Chairman’s Introduction Lesley Carline, 9:30 Chairman’s introduction 11:45 Preparing and monitoring an effective risk Director, KGC Associates and Roger Cooper, Head of Trusteeship, register PMI Vice President Pi Partnership Group • Identifying key risks 10:40 Setting the Scene Lesley Carline 9:35 The role of Secretary to the Trustees – • Assessing potential impact on the scheme • Essential jargon best practice approaches • Implementing effective controls • Parties involved in a pension scheme • Effective pre and post meeting preparation • Ongoing review • Types of Trustee • Organising the meeting Jayne Pocock, Head of Pensions Governance 11:10 Pensions Law Speaker from • Drafting an effective agenda Services, JLT • Role of lawyers – Company v Trustee Squire Patton Boggs • Drafting the minutes and dealing with actions 12:10 Effective complaint handling • Complaints and the Ombudsman • Managing relationships and handling conflicts • Maintenance of procedure • Recent legislation and on the horizon Angela Sharma, Lawyer, Taylor Wessing • Compliance with deadlines 11:40 Design of Trust Based Pension Schemes Julian Mainwood, 10:00 Effective minute writing • Relations with TPAS / Ombudsman • Defined benefit Partner, Barnett Waddingham • Accurate recording Temilola Osha, Pension Consultant, Barnett • Defined contribution • Appropriate degree of detail Waddingham • Retirement benefits • Clear action points • Early leavers 12:35 LUNCH • Timely distribution • Ill health benefits Joanna Smith, Associate Director, Sackers 13:20 Managing conflicts of interest • Death benefits • Identifying actual and potential conflicts 10:30 Development of meeting management 12:10 Pension Administration Paul Couchman, • Developing procedures • Teleconferencing • Role of the administrator Managing Director, Premier • Maintaining appropriate records • Paperless approach to document distribution • Calculating benefits Manjinder Basi, Scheme Secretary, Inside Pensions • Identifying constraints • Communicating benefits Curtis Mitchell, Assistant Scheme Manager, PSITL 13:50 Working effectively with the Chair of Trustees • Data • Management information 12:40 LUNCH 10:55 COFFEE • Document management 13:20 Member Engagement Karen Bolan, 11:15 Regular annual activities • Monitoring action points • Disclosure Head of Engagement, AHC • Annual timetables and reporting Beth Brown, Senior Associate, Mayer Brown • Advice v guidance • Managing scheme documentation International LLP • Managing budgets and business plans • New communication channels 14:20 Trustee effectiveness • Triennial submission of the declaration of 13:55 Pension Scheme Funding Andy Nichols, • Training needs analysis compliance • Role of the Actuary and Investment Consultant Consultant, Retirement and • Maintenance of a training log • New statutory duties concerning DC schemes • Contributions Investment, Aon Hewitt • Types of training Joel Eytle, Legal Director, DLA Piper • Investments • PMI CPD scheme Alan Pickering, Chairman, BESTrustees • Actuarial valuation FEES 14:50 CHAIRMAN’S CLOSING REMARKS 14:25 CONCLUDING REMARKS AND Q&A Members £255.00 + VAT Hosted at the PMI Non Members £355.00 + VAT Kindly hosted by: FEES Floor 20, Tower 42, 25 Old Broad Street, London, EC2N 1HQ Members £109.00 + VAT CONTACT DETAILS CONTACT DETAILS t: 020 7392 7427 Non-Members £163.00 + VAT T: 020 7392 7427 • e: [email protected] e: [email protected] 5 New Street Square, London, EC4A 3TW We will use our powers to protect pension savers
In our latest compliance and enforcement report, we have once again demonstrated how we are using our powers to safeguard pension savers. The bulletin for January to March 2018 shows how we are ensuring employers meet their automatic enrolment pension duties. This quarter’s enforcement action represented over 20% of the AE powers we’ve ever used, including Darren Ryder, nearly 20,000 Compliance Notices (CNs), over 11,000 £400 Fixed Penalty Director of Notices (FPNs), and over 2,500 Escalating Penalty Notices (EPNs) for those Automatic Enrolment who persistently failed to meet their duties. at TPR
This high number was due to a bulge of employer staging dates Huge numbers of employers are starting their workplace pensions in autumn 2017, with their declaration of compliance due date duties every month and the vast majority are successfully meeting falling five months later. their duties.
We also successfully prosecuted a company and its managing However, where an employer fails to do the right thing for their staff, director for falsely claiming they had put their staff into a pension. we will take action using the wide range of powers available to us. Employers who deliberately put incorrect information on their declaration of compliance risk being found out in a number of ways, including from spot checks or whistleblowers.
32 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK The bulletin highlights: 2. Monitor the age and earnings of all staff • A total of 35,862 enforcement powers were used between January Employers will need to monitor any changes in age and earnings and March 2018 compared to 28,446 the previous quarter of their staff to identify if they become eligible for automatic • 3,721 more fixed penalty notices were issued this quarter enrolment. They’ll also need to check eligibility of any new members compared to last quarter of staff on the day they start work. Should staff members become • 2,037 more compliance notices were issued this quarter eligible, for example by turning 22, or by meeting the earnings compared to last quarter thresholds, then they’ll need to be put into a pension scheme and • 431 more unpaid contribution notices were issued this quarter contributions paid to it. Payroll software should be able to support compared to last quarter. clients with this.
3. Process requests to opt in, join or leave the What steps can your clients take to ensure scheme, and keep and maintain accurate records compliance with automatic enrolment? Opt in/join: If any staff write to their employer asking to join their They will need to ensure that they pay and maintain regular workplace pension scheme, they must be put into it within a month contributions into their chosen pension, monitor the age and earnings of the request being received. Employers will have to pay into the of their staff and enrol eligible staff, process any requests to join or pension scheme unless they are aged 16-74 and earn less than £490 leave the scheme, and keep and maintain accurate records. They’ll a month or £113 per week. also need to re-enrol eligible staff into an automatic enrolment pension scheme every three years. Let’s take these in turn: Opt out: If any staff choose to leave the pension scheme within one month of being put into it, employers need to stop taking money out 1. Pay and maintain regular contributions of their pay and arrange a full refund of what has been paid to date. This must happen within one month of their request. into the pension Keeping records: Staff records need to be kept up-to-date, including Employers need to calculate and pay the employer contributions to who’s been enrolled and when, information about the pension their staff’s pension scheme on an ongoing basis. In addition, they’ll scheme, and the contributions being paid. These records must be need to calculate staff contributions, make the necessary deductions kept for six years, except for requests to leave the pension scheme from payroll, and transfer their contributions to the pension scheme. which must be kept for four years. They’ll have agreed what these rates are and when to pay them with their chosen pension scheme. By law, your client and their staff have 4. Re-enrolment to make minimum contributions into the scheme, and they should be aware that these minimum contribution levels increased in April Every three years, all staff who either opted out of their workplace 2018, and are due to increase again in April 2019 (see below). pension scheme or have ceased to become members, need to be re- assessed and re-enrolled if they meet certain criteria. Employers will need to write to them to tell them what they’ve done, and then they’ll need to re-declare their compliance to The Pensions Regulator. Employer Total Date minimum Staff minimum Further information on ongoing duties can be found on The Pensions effective contribution contribution contribution Regulator’s website.
Current until 5 2%2% 3%3% 5%5% Useful links: April 2019 Business advisers: www.tpr.gov.uk/knowing-your-clients-ongoing-duties 6 April Employers: 2019 3%3% 5%5% 8%8% onwards www.tpr.gov.uk/ongoing-duties
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 33 Wednesday 5 September 2018 The Bloomsbury Hotel London
#dcconference
PUTTING MEMBERS FIRST
DEFINED CONTRIBUTION CONFERENCE PROGRAMME NOW ANNOUNCED
DC programme returns on Wednesday 5 September to The topics discussed at the conference include: the luxurious Bloomsbury Hotel, London. With a carefully • Investment Strategy designed conference covering the latest regulation, • Delivering value for money investment options, and communication tools, DC • Default Funds Conference aims to help equip schemes to deliver the • Fixed income – market update best outcome for your members. • Master Trusts • DB Transfers • Governance models for DC
FOR MORE INFORMATION AND TO REGISTER PLEASE VISIT: EVENTS.PROFESSIONALPENSIONS.COM/DCCONFERENCE
Sponsors: Hosted by:
events.professionalpensions.com/dcconference
PPDCC18-AD210x256.indd 1 6/20/18 11:07 AM 12517 Annual Lecture-Aspects_PMI 13/06/2018 10:30 Page 1
Wednesday 5 September 2018 The Bloomsbury Hotel London PMI #dcconference Annual Lecture PUTTING Wednesday 12 September MEMBERS 2018 Time: 5:30pm - 8:00pm FIRST Great Hall JP Morgan , 60 Victoria Embankment, London EC4Y 0JP GUEST SPEAKER
TIM HARFORD With the continued success of our annual lecture series, we A world-renowned are pleased to announce that we will be holding our fourth PMI lecture in September 2018. behavioural economist, an award-winning This event will count as a one hour CPD accredited workshop and whilst there is no charge to attend for PMI Financial Times columnist members and Trustee Group, places will be filled on a first and a BBC broadcaster come, first served basis and must be pre-registered. DEFINED CONTRIBUTION CONFERENCE PROGRAMME NOW ANNOUNCED
DC programme returns on Wednesday 5 September to The topics discussed at the conference include: the luxurious Bloomsbury Hotel, London. With a carefully • Investment Strategy designed conference covering the latest regulation, • Delivering value for money investment options, and communication tools, DC • Default Funds Conference aims to help equip schemes to deliver the • Fixed income – market update best outcome for your members. • Master Trusts • DB Transfers • Governance models for DC
FOR MORE INFORMATION AND TO REGISTER PLEASE VISIT: EVENTS.PROFESSIONALPENSIONS.COM/DCCONFERENCE
Sponsors: Hosted by:
REGISTER NOW Member and Trustee Group: FREE Non-Members £50 Please contact us on [email protected] or alternatively, you can call us on events.professionalpensions.com/dcconference 020 7392 7427 for further details.
PPDCC18-AD210x256.indd 1 6/20/18 11:07 AM 5 actions if your sponsor is a retailer
It’s safe to say, 2018 hasn’t exactly been a vintage year for many retailers, but the pressure on them has been growing for some time. In 2016, a British Retail Consortium report predicted as many as 900,000 UK retail jobs could be lost by 2025 due to the effects of the digital revolution and the relative costs of labour, property and technology. Low consumer confidence, a weak pound (against the dollar), and rising oil prices (due to OPEC and Russia limiting Craig Simmons, supply), have not helped matters. So what should trustees and Consultant at sponsors of DB schemes in this sector be thinking about? Hamish Wilson
1 Be prepared to take action 3 Review the investment strategy Immediate action may be needed if the future Avoid the knee-jerk reaction of adopting a less risky survival of the sponsor is uncertain. Don’t wait investment strategy on the back of what may be for the next trustee meeting, investment review happening to other retailers. The investment strategy or funding review. Implement or review an must be considered on the merits of the unique Integrated Risk Management process to circumstances of each scheme and sponsor. manage covenant, investment and funding risks. Consider if you have the right advisers in place. 4 Review the funding strategy 2 A demand for additional contributions from pension Review and monitor the schemes may be the final nail in the coffin for some employer’s covenant retailers. It is important for trustees to understand Inevitably some retailers will fail and the schemes they both the opportunities and constraints faced by the sponsor will end up in the PPF. Others, however, will sponsor in determining their funding strategy. be able to adapt their businesses and thrive in a new environment. Knowing which camp your sponsor falls Governance into is vital to enable appropriate investment and funding 5 decisions to take place. Make sure the process used to There is no need to be fearful of the regulator or assess and monitor the employer’s covenant is robust and parliamentary select committees if your house is in can stand up to scrutiny. Good lines of communication order. Make sure a good governance framework is between trustees and sponsor go a long way here. in place to manage the scheme and associated risks robustly and efficiently.
36 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK RPI: the last rites or a rejuvenated measure for pension increases?
By Richard Akroyd, Willis Towers Watson
Since the Government announced in 2010 that it inquiry into the use of RPI, and has been taking evidence from interested parties. It is possible that by the time this article is would move to using the Consumer Prices Index published, they may have issued their report and this may help to (CPI) to uplift State pensions, there has been a steer Government policy. debate on the merits of continuing to use the To date, it is not clear what this influential committee may conclude. Retail Prices Index (RPI) as a measure for pension Comments made on the evidence presented to them suggest that increases in other pension schemes. they thought more efforts should have been taken from 2010 Despite being discredited in various quarters (including by those onwards to ensure RPI had remained fit for purpose, rather than who produce it), and no longer a national statistic, RPI remains trying to pave the way for its demise. Comments in recent months an intrinsic measure of inflation for the UK economy. This is not from Mark Carney and the Chancellor suggest that RPI is needed for just for pension schemes but in many areas of life including rail now, but this may not remain the case (possibly paving the way for fares, student loans, and perhaps most importantly because the the issuance of CPI-based gilts). However, the outcome is likely to Government continues to raise funds through issuing index-linked be some change. Lord Kerr has said that “the one thing we cannot gilts where returns are linked to RPI (and will continue to be until do is nothing." another committee member, Lord Lamont, has said 2068, the maturity date of the longest index-linked gilt). he had “a lot of sympathy” with the argument that RPI could be For most schemes the position is predestined by the drafting of maintained with some urgent changes relating to clothing prices. their rules, which will often not have envisaged there being more So, over the next few months we are faced with the possibility we than one measure of inflation. Hence some schemes automatically may finally lose RPI, in which case pension scheme trustees and moved to a CPI basis, but others were constrained to a RPI basis. sponsors will need to work out how they should replace it (either This has resulted in a number of court cases to try to resolve the with or without Government help), or we may get a redefined RPI position, where the outcome has often turned on the precise (something close to CPIH, with housing costs), which may lead to wording in a scheme’s rules. Whilst the argument should in theory pension increases somewhere between CPI and RPI, or RPI may be around what is the most appropriate way of adjusting pensions soldier on for a few more years as a discredited measure but still for price inflation, often the motivation hasn’t been about getting at the heart of the UK economy. to the 'right' increase, rather than to reduce costs by moving to the lowest possible basis for inflation. Whatever the outcome, as well as making This is a problem that does need to be resolved for pension a real difference to pensioner benefits, schemes but, to date, the Government has not been prepared to trustees and sponsors should be wary of legislate on the matter, stepping back from the discussion, at least any wider effects on their pension schemes, for now, in its recent White Paper. Perhaps, more fundamentally, it is not clear what the right level of inflation for pensioners is. particularly if they are hedging liabilities Everyone has their own unique inflation experience (it depends using RPI-based instruments. what you spend your money on), so it is finding the best fit. Whilst RPI may have been discredited, there are arguments that CPI itself Whilst trustees may end up paying lower pension increases, they is flawed since it ignores housing costs, and a variation on CPI may also have fewer assets with which to pay those increases. And (CPIH), which is closer to RPI, may be more appropriate. markets may move on the expectation of a change, in advance of But the position may be resolved from an unlikely quarter as the any actual change. A change in the measure for RPI could therefore House of Lords Economic Affairs Committee has launched an have wide-ranging effects on funding targets, recovery plans, buy-out terms, and PIEs to name a few.
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 37 REGISTER NOW
CONFERENCES
PENSIONS AGE GREAT WESTERN CONFERENCE Thursday 13 November 2018 I Bristol Marriott Hotel City Centre REGISTER NOW www.pensionsage.com/westernconference
Register to attend and stand the chance to win an Apple Watch on the day of the conference!
Sponsored by
For the latest news and updates about the Pensions Age Western Conference follow us - @PensionsAge #PensionsAgeWestern
western-PMI.indd 1 20/06/2018 16:23:59 REGISTER NOW Accredited adviser programme
CONFERENCES Accredited Adviser Programme Diploma in Regulated Retail Advice
A BRIEF INTRODUCTION PMI is actively promoting this qualification to encourage take Hello and welcome to what has always been your page. up for both the autumn 2018 examination series and the spring As part of my role as Director of Lifelong Learning I am now 2019. I would like to increase the take up for this qualification supporting the AAP and have a brief to ensure that your and am currently engaging with recent successful learners to gain qualifications, learning, and ongoing recognition are information about their impressions of taking the qualification relevant and appropriate for your needs. and how this has benefited their working practices, Seasoned AAP folk are also invited to share their stories of life as a Anne Harper, Director of Lifelong Learning Financial Adviser.
Fresh focus on Continuing DRRA exam dates: Professional Development
Taxation, Retail Investment and Pensions Following a recent meeting with the FCA it is timely to Tuesday 9th October, 2.00pm-5.00pm reconsider our approach to CPD. I am looking to refresh Retail Advice and Regulation PENSIONS AGE GREAT WESTERN CONFERENCE everything from the declaration paperwork to our approach in Monday 8th October, 2.00pm-5.00pm supporting and guiding you as an FCA recognised authority to Thursday 13 November 2018 I Bristol Marriott Hotel City Centre maintain and improve your practice. Over the coming months there will be regular updates on what we are doing and why we believe it is important to define our offer to you. REGISTER NOW As a starting point we would like to extend an open invitation to all of our accredited advisers to attend a briefing and workshop session here at the PMI’s offices in central London. www.pensionsage.com/westernconference 26th July, 11am - 2pm. For those who can’t attend we will provide a full set of the presentations used, complemented Register to attend and stand the chance to win an Apple Watch on the day of the conference! with speakers’ notes, and a set of action points arising from the meeting, along with an impressionistic account of the proceedings. The event will be free of charge to all of our AAP members.
Sponsored by
A particular area of regulatory concern is the advice given about pension transfers. An FCA report last year stated that in less than half of the cases that it had reviewed was the regulated advice concerning pension transfers found to be suitable. With the continued interest in DB to DC transfers, there is an urgent need for improvement.
There is also a need for a greater number of transfer specialists to ensure that the volume of demand is adequately met. The FCA has revised its syllabus for accredited qualifications for transfer specialists and there is a compelling case for further CPD for advisers For the latest news and updates about the Pensions Age Western Conference working in this area. follow us - @PensionsAge #PensionsAgeWestern
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 39
western-PMI.indd 1 20/06/2018 16:23:59 Taking on the PMI Qualifications Tips for Effective and Efficient Study
I joined Willis Towers Watson (WTW), in January 2017, and work as a pension administrator for one of our largest clients. The bulk of my experience lies in Defined Contribution benefits, but recently I have been increasing my Jed Newton exposure to Defined Benefit arrangements.
I became aware of the also expressed very clearly. (taking great care not to distort of new concepts. I found that Pensions Management Ultimately, the PMI exists meanings), which allowed me a 40 minutes on, 20 minutes Institute during my WTW to create the professionals to present the information in a off approach allowed me to induction, which highlighted of tomorrow, not to hinder way that worked best for me, focus more, study for longer the professional development them. That said, the purpose and to practice articulating and cover more material in an that completing the of the qualification is to test unfamiliar concepts. evening, preventing ‘burnout’. qualifications can provide. your knowledge, and below Upon learning that the I have set out the four main Take advantage of the I am currently studying towards company would actively principles which saw me assignments Core Unit 2. It is my aim to support my studies I knew through my studies: Two years had passed since progress to, and complete, that this was something I I took my A Levels, so I was the Advanced Diploma in would pick up at the earliest There are chapters, concerned that my exam Retirement Provision, with a opportunity. make use of them! technique and timings might view to becoming a Fellow of When I first opened the study be lacking. My PMI appointed the Pensions Management Having carefully considered manual I was a bit intimidated tutor was immensely Institute by the age of thirty. the qualifications available, I by the size of the document. I supportive and detailed in decided to sit the Diploma in found that printing it off and her feedback; she pointed out Retirement Provision (DRP). separating it into the specified ways that I could ensure my I sat my first unit of the DRP chapters allowed me to direct answers were concise and My eventual goal is to (Core Unit 1A), in April 2018 my revision to specific areas. clearly communicated. move into Operations and I was very pleased to It was far less daunting to be Management or find that I had passed. I was facing small sections of the Split your time wisely concerned that the multiple Client Relations. I pack, and easier to take with me If you enrol for an exam sitting choice questions would am confident that to review on my daily commute. just before the deadline, you be designed to catch the the support offered will have just under three candidate out; provided you Make your own notes months of preparation. When by Willis Towers read the questions carefully The study packs are very well I started studying, I first tried Watson, and the PMI and know the content I do not written but, inevitably, your own revising intensely in two-hour qualifications, will feel that this is the case. The writing style will differ. I re-wrote blocks but found that this was short answer questions are help me get there. the study pack in my own words not conducive to the retention
40 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK Services Directory
– To advertise your services in Pensions Aspects’ Services Directory, please contact [email protected] or call 020 8405 6412 COPY DEADLINE: THURSDAY 16 AUGUST FOR SEPTEMBER’S ISSUE
Actuarial & Pension Consultants
Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. For further information on our capabilities and to learn how we empower results for clients, please visit www.aon.com.
We’re proud to provide award winning independent and impartial advice For more information, or to arrange a chat, contact: on Pensions & Benefits, Investment, Insurance and Technology Innovation. Jon Hutchings Independence allows us to put our clients at the heart of our business. Our T: 020 7082 6000 award-winning status is testament to our commitment to our clients and the E: [email protected] innovation in our approach to advice, new solutions and technology. www.hymans.co.uk Because better futures aren’t down to chance.
Asset Management
Aberdeen Standard Investments is a leading global asset management brand dedicated to creating long-term value for clients. To achieve this, we offer a comprehensive range of investment capabilities, as well as the highest levels of service. For more information please visit our website at aberdeen-standard.co.uk or contact:
Ken Tooze Dominic Delaforce Debbie Harris Head of UK Institutional Sales Head of UK Institutional Client Relationship Management Global Head of Consultant Relations T: +44(0) 20 7463 5902 T: +44(0) 20 7463 6330 T: +44 (0) 20 7872 4104 E: [email protected] E: [email protected] E: [email protected]
Issued by Aberdeen Asset Managers Limited which is authorised and registered by the Financial Conduct Authority in the United Kingdom. Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 41 Auditors & Accountants
YOU’RE PREPARED BECAUSE WE PREPARED For help with your pensions audit, accounting or covenant assessment needs contact Ian Bell, Head of Pensions +44 (0) 20 3201 8608 [email protected] rsmuk.com/pensions
Communications
UK’s leading pensions job board www.pensioncareers.co.uk UK’s leading pensions job board
42 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK Data Services
Financial Education & Regulated Advice
See the power of Pathways for yourself Pathways with a 30 minute online demonstration. Helping employees choose the right path towards retirement
FCA Regulated Retirement Advice Defined Benefit Pension Transfers Lifetime Allowance Planning Pension & Retirement Seminars Pathways 0800 077 8807 | [email protected] | www.intelligentpensions.com
...because one size doesn’t fit all. With so many retirement income options available for employees, we 0800 234 6880 know that a ‘one size fits all’ approach to retirement planning doesn’t [email protected] work. Therefore, we created our Retirement Income Options service to implement and manage www.wealthatwork.co.uk retirement planning for employees and to determine the best course of action based on their personal circumstances. The service consists of: WEALTH at work and my wealth are trading names of Wealth at Work Limited and is Financial education and guidance | Regulated advice | Implementation of options | Ongoing support authorised and regulated by the Financial This fully integrated service is available now to pension schemes, trustees and employers. Conduct Authority.
Independent Trustees
Focused, High Quality Pension Trusteeship Services
www.dalriadatrustees.co.uk Executive Trusteeship | Non-Executive Trusteeship | Sole Trusteeship | | Scheme Restructuring |
Would you like to know more? - Please get in touch [email protected] | 020 7495 5515
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 43 Pensions Lawyers
Georgina Stewart, Director We are the UK’s leading specialist law firm of Business Development Sacker & Partners LLP for pensions and retirement savings. 20 Gresham Street London EC2V 7JE Find out more about how we can help you at www.sackers.com T +44 (0)20 7329 6699 E [email protected]
Pension Systems
Third Party Administrators
Delivering consistent and quality member-focussed administration
Get in touch with our experts: [email protected] 0333 11 11 222 www.barnett-waddingham.co.uk/quality
For further details contact our head of pension administration: [email protected] 0113 818 7317 At First Actuarial we do pension administration. We make sure Mayesbrook House, Lawnswood members get the right pension at the right time as easily as possible. Business Park, Leeds, LS16 6QY We explain things clearly so members can make informed choices. www.firstactuarial.co.uk
44 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK For further information contact: We administer Damian Magee T: 07919 111208 pensions for 460,000 E: [email protected] scheme members www.puntersouthall.com
Technology and Administration Embracing technology and flexibility to deliver
� Global administration solutions willistowerswatson.com � Market leading online tools Westgate, 120-130 Station Road, Redhill, Surrey, RH1 1WS T +44 1737 241144 F +44 1737 241496 � Flexible benefits administration and total rewards statements Clive Witherington Mike McMillen +44 1737 273860 +44 1737 273173 Towers Watson is represented in the UK by Towers Watson Limited. [email protected] [email protected] Copyright © 2016 Towers Watson. All rights reserved. WTW-EU-16-ADV-2211c
EXPERT Cheapside House 138 Cheapside ADMINISTRATION London EC2V 6BJ 020 7330 0778 [email protected] www.trafalgarhouse.co.uk
Trustees Liability Protection Insurance
Contact: OPDU is a specialist provider of insurance for trustees, sponsors and pensions Martin Kellaway employees in a stand-alone policy. Our policy covers all risks including GDPR, Cyber Executive Director and Regulator Investigations. We can also provide cover for: pursuing third party providers, theft, retired trustees and court application costs. Benefits include our Address: OPDU Ltd, own claims service and free helpline. We also provide run off cover and missing 90 Fenchurch Street, London, EC3M 4ST beneficiaries cover. OPDU offers free CPD training covering trustees protections and how insurance works for groups of 6+. E: [email protected] W: www.opdu.com
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 45 Appointments
– To advertise your jobs in Pensions Aspects or on pensioncareers.co.uk, please contact [email protected] or call 020 8405 6412 COPY DEADLINE: FRIDAY 17 AUGUST FOR SEPTEMBER’S ISSUE
www.ipsgroup.co.uk/pensions
TPA Operations Manager Independent Trustee Associates & Managers c £65,000 + Bonus & Package – London All levels up to £90,000 + Bonus – London
• Manage 3rd party relationships and delivery • Trusteeship and Secretariat work with top clients • Impressive, expanding City based firm • Diverse, challenging work with ongoing and distressed schemes • TPA client/ops background required • Bright, hungry, technically strong APMI Graduates needed • De-risking exposure preferred • Several roles at different levels with excellent prospects
Contact: [email protected] - London Ref:G1128929 Contact: [email protected] - London Ref:G135157
Pensions Change Manager Trustee Administrator c £100,000 – Berkshire Up to £65,000 – London
• A FTSE 100 Company • A professional pensions Trustee Company. • 12 month fixed term contract • To provide scheme and project support • Role will involve high level pensions project management • A permanent role • Large scale operational change programmes • A role for an ambitious pensions administrator
Contact: [email protected] - London Ref:SV135999 Contact: [email protected] - London Ref:SV135880
Pension Administration Manager Pensions Officer & Administrator To c£45,000 + Car Allowance & Benefits – Manchester £ Competitive Salary & Benefits Package – Carlisle
• Responsible for Administration client relationships • In-house pension team of global brand • Technical referral point for complex cases • Ad-hoc project work and pension clinics • DB and DC Administration experience essential • Variety of scheme administration involved • People management skills required • Would suit aspiring Senior Administrator
Contact: [email protected] - Manchester Ref:DLH136417 Contact: [email protected] - Manchester Ref:DLH136418
We also have a large selection of interim and contract vacancies available. Please contact Andrew Gartside - London Office [email protected] London Leeds Birmingham Manchester Tel: 020 7481 8686 Tel: 0113 202 1577 Tel: 0121 616 6096 Tel: 0161 233 8222
PMI_Jul2018.indd 1 02/07/2018 11:21
46 PENSIONS ASPECTS / JUL-AUG 2018 WWW.PENSIONS-PMI.ORG.UK
EXPERT ADVISERS IN PENSIONS RECRUITMENT – 01279 859000 [email protected] | branwellford.co.uk 4C Twyford Court, Great Dunmow, Essex, CM6 1AE To advertise your jobs in Pensions Aspects or on pensioncareers.co.uk, please contact Part Qualified Pension Actuary x 3 Senior Pensions Technician Pensions Manager & Secretary to the Trustees Ref: PS17066 | Home Counties | £40,000 - £55,000pa Ref: NH17081 | Sheffield | £22,000 - £27,000pa Ref: HB17064 | Warwickshire | To £55,000pa + 25% Bonus [email protected] or call 020 8405 6412 Seeking pension Actuaries with DB scheme experience. Working on an allocated portfolio of pension schemes Advise, maintain and develop all aspects of the COPY DEADLINE: FRIDAY 17 AUGUST FOR SEPTEMBER’S ISSUE Friendly team, modern office close to station, great to deliver scheme events, including the production organisations DB and DC pensions’ arrangements. Act onsite facilities, low staff turnover, investment in career of annual benefit statements, pension increases and as Secretary and advise on all pension related matters, development, training & support for qualifications. renewals as well as any ad hoc client project work. in collaboration with advisers, ensuring the pension Professional award-winning company & superb benefits. Experience of DB, DC and Hybrid schemes is essential. arrangements comply with legislation and best practice.
Assistant Consultant Pension Administration Manager Data & System Analyst Ref: PS17046 | London/Berks | £30,000 - £40,000pa Ref: NH17078 | Leeds | £Competitive Ref: HB17041 | Across the UK | £25,000 - £45,000pa You will support the Senior Consultants on day to day You will be responsible for the overall management of We have a number of opportunities across the UK for pension services, with clients both DB and DC trust and a designated pensions team as well the service delivery Pensions Data & Systems Analysts. If you have experience insured. A busy role including trustee service support, of the client portfolio. You will attend both client and in providing system support and data cleansing/ drafting member communications, managing Governance Trustee meetings, and take responsibility for admin billing, management coupled with a wealth of experience in the and annual statements. Ideally commenced PMI. workflow management and recruitment for the team. pensions field.
Business Development Consultant Senior Pensions Projects Administrator Scheme Manager Ref: PS17083 |London/S.Yorks./M’chester | £45,000 - £60,000pa Ref: NH16921 | Surrey | To £30,000pa Ref: HB17020 | Home counties | Circa £55,000pa Employee Benefit business wins from medium sized UK Upon joining this award-winning consultancy, you will This role requires someone who is DB strong, hot firms. The key skills include developing a network of support the delivery of pension scheme projects such on pensions’ legislation, active within a pensions’ decision makers, direct sales calls, marketing, bid/tender as GMP reconciliations, GMP equalisation, benefit administration department who has looked after multiple process, attending client pitches and successful business analysis and new scheme implementations. Competitive schemes and/or clients. You will be the client manager conversion. Incentivised bonus scheme. salary, bonus and flexible working hours are on offer. for 2-3 in house schemes and manage a team of 3. Pip Sandford [email protected] Nikki Haupt [email protected] Hayley Brockwell [email protected]
Pensions Consultant Up to £65,000 + Benefits + Bonus, London
If delivering the right solutions for your clients is your top priority - based on a thorough understanding of your client’s business, creative thinking and state-of-the-art systems - then this could be the right opportunity for you. This partnership of consulting actuaries with over 250 employees specialises in providing their clients with practical, bespoke and robust solutions, covering corporate pensions, strategic investment advice, general insurance and specialist financial services including risk appraisal, business modelling and valuations. They are looking for an experienced Pensions Consultant to join their rapidly expanding pension’s team. Responsibilities will include servicing a varied portfolio of corporate clients as well as gaining new business. The successful candidate will need to have strong technical knowledge of both Defined Benefit and Defined Contribution schemes. APMI or good progress towards completion is desirable but not essential. This role would suit an enthusiastic individual, who has a proactive approach and a proven track record within pensions consulting.
For additional information and for other career opportunities, please contact Ashe Consulting in strictest confidence. Tel + 44 (0) 1403 254 079 Fax + 44 (0) 1403 750 089 Web www.asheconsulting.co.uk Email [email protected] 28a East Street, Horsham, West Sussex RH12 1HL
WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 47 more pensions jobs than anywhere else
In partnership with
Sign up for jobs by email to hear about the latest pensions opportunities first
www.pensioncareers.co.uk Pensions Management • Investment • Actuarial • Trustees • Interims
Career opportunities for pensions professionals more pensions jobs than anywhere else South East £ Attractive
At GTF we are currently assisting a small number of clients who have specific opportunities arising within their existing teams. Primarily with major organisations sponsoring £ multi-billion Schemes/Funds with significant historical DB provision and growing DC arrangements they have small in-house teams of pensions professionals who support the sponsor on corporate aspects and the Trustees and committees In partnership with across the board. The roles are at the professional pensions specialist and pensions management level.
We are interested in hearing from good calibre pension professionals for whom the time may be right to consider a progressive career move. Experience may have been gained within similar professional in-house pensions functions or within the actuarial/pensions consultancy fields. Ideally you will have gained a breadth of exposure to most aspects of maintaining pension provision and your technical knowledge will include a sound understanding of the funding, financing and cost of different pension arrangements.
Additionally, we would welcome contact from those who have specialised in Pension Fund/Investment finance and accounting, or who have focused on Investment or Client Management.
Those interested in a confidential discussion regarding these opportunities and how they might help to progress your career should forward a cv and a note regarding current compensation to facilitate an arranged discussion.
Please contact GTF on 0207 489 2053 or email [email protected]
Pensions Executive Search and Selection GTF act as retained consultants in the resourcing of senior pensions appointments www.gtfgroup.com
Pension Wise Guidance Specialist £24,000 - £30,000
Citizens Advice is looking for pension specialists to provide face-to-face Pension Wise guidance in locations across the country.
Pension Wise is a free and impartial government service that offers people guidance on their defined contribution pension options. Citizens Advice offers the face-to-face Pension Wise appointments in over 300 locations. As of June 2018, the service has helped over 250,000 people understand their pension options and has a 98% satisfaction rating.
You’ll be expected to supply accurate and relevant information and guidance on pensions options and choices. You’ll need to have a good foundation knowledge of pensions law and practise, gained in a pensions technical role, as well as a thorough understanding of a broad range of pension arrangements, both occupational and personal. You also should have an understanding and appreciation of wider retirement issues.
Sign up for jobs by email to hear about the Successful candidates must be able to attend a 3-week induction programme, 6 days of which will be held in central London in October - exact dates TBC. latest pensions opportunities first Roles are initially fixed term until March 31st 2019 (possibility of extension). www.pensioncareers.co.uk WWW.PENSIONS-PMI.ORG.UK PENSIONS ASPECTS / JUL-AUG 2018 49 Leading recruiter for Pensions Professionals www.sammonspensions.co.uk [email protected] 01277 268 988 / 020 7293 7022 Placing you first since 1957
Pensions Team Manager Leading Practice, Qualified Pensions Lawyers Surrey to £50000 per annum London £excellent Provide leadership to a focused team, ensure effective client Top tier Practice offers newly-created roles for ambitious communication, previous managerial experience essential. Ref: pensions industry experts. NQ to 8+yrs PQE. Ref: 799400 SB 1370843 BC Technical, Governance & Risk Manager, in-house Pensions & Benefits Specialist London/Middlesex £attractive package Middlesex c.£40000 per annum Manage risks, strategically develop governance framework, Support the Benefits Manager manage and deliver UK Pensions analyse legal and regulatory impact. Ref: 1374369 SB Administration and Sharesave scheme. Ref: 1368699 JW Pensions Scheme Secretary, in-house Senior/Pensions Administrators, in-house London £superb package Berkshire to £40000 per annum Work directly with the trustees of this £bn+ pension scheme, Join this FTSE100’s in-house pensions administration team in help shape and deliver strategy. Ref: 1374227 SB challenging and varied roles. Ref: 1369597/963000 JW Technical & Trustee Specialist, in-house Systems Analyst Surrey £in line with experience London £in line with experience Exceptional opportunity for a technically-astute APMI Pensions Systems specialist required for this market-leader. Requires Data professional. Agile working. Car +bonus. Ref: 1374032 SB Analysis and strong excel skills. Ref: 1371310 JW Trustee Secretary/Governance Pensions Team Leader London £attractive Berkshire £in line with experience Varied and challenging career move with this well-respected Lead and develop your team, drive exceptional service standards, Professional Trustee specialist. Ref: 808600 SB whilst being the key contact for clients. Ref: 1369101 NC Operations Manager Pensions Fund Accountant London c.£65000 per annum Bristol to £35000 per annum Proactively manage third party administrators, contribute to Newly-created role, due to expansion, as a senior Accounts team ongoing internal process development. Ref: 1371814 SB member at this specialist pensions consultancy. Ref: 1374260 NC Client Relationship Manager Senior/Pensions Administrator & Projects Multiple locations £excellent Bristol, West Yorkshire, Scotland to £32000 per annum Progressive move with this industry-leading third party Multiple opportunities, various levels with leading consultancies. administrator for an ambitious Relationship Manager. Ref: DB/DC BAU as well as specialist projects roles. Ref: 1368271 NC 1372802 BC
Senior Pensions Administrator Trustee Consultant, Investments, in-house Birmingham to £30000 per annum Middlesex c.£60000 per annum Join a motivated team committed to providing reliable, high Use your pension scheme knowledge, ideally investment standards of administrative services. Ref: 1364246 NC governance, and trustee secretarial experience. Ref: 1374291 SB
Pensions Administrator, part-time/work from home Pensions Operations Manager Surrey £28500 per annum Bristol £excellent Work in a unique environment for an organisation that has Make your mark heading up several dedicated third party won many prestigious pensions awards. Ref: 1373917 JW Pensions Administration teams. Ref: 1371057 BC
School Leaver/Graduate Pensions Administrators Pensions Consultant Various locations across UK £in line with experience Surrey £excellent Entry-level opportunities for bright, driven individuals with Join an award-winning independent consultancy, providing leading pensions consultancies, with full training. Ref: governance and secretarial services to clients Ref: 1374366 BC 1372453 FR Leading recruiter for Pensions Professionals www.sammonspensions.co.uk [email protected] 01277 268 988 / 020 7293 7022 Placing you first since 1957
Pensions Team Manager Leading Practice, Qualified Pensions Lawyers Surrey to £50000 per annum London £excellent Provide leadership to a focused team, ensure effective client Top tier Practice offers newly-created roles for ambitious communication, previous managerial experience essential. Ref: pensions industry experts. NQ to 8+yrs PQE. Ref: 799400 SB 1370843 BC Technical, Governance & Risk Manager, in-house Pensions & Benefits Specialist London/Middlesex £attractive package Middlesex c.£40000 per annum Manage risks, strategically develop governance framework, Support the Benefits Manager manage and deliver UK Pensions analyse legal and regulatory impact. Ref: 1374369 SB Administration and Sharesave scheme. Ref: 1368699 JW Pensions Scheme Secretary, in-house Senior/Pensions Administrators, in-house London £superb package Berkshire to £40000 per annum Work directly with the trustees of this £bn+ pension scheme, Join this FTSE100’s in-house pensions administration team in help shape and deliver strategy. Ref: 1374227 SB challenging and varied roles. Ref: 1369597/963000 JW Technical & Trustee Specialist, in-house Systems Analyst Surrey £in line with experience London £in line with experience Exceptional opportunity for a technically-astute APMI Pensions Systems specialist required for this market-leader. Requires Data professional. Agile working. Car +bonus. Ref: 1374032 SB Analysis and strong excel skills. Ref: 1371310 JW Trustee Secretary/Governance Pensions Team Leader London £attractive Berkshire £in line with experience Varied and challenging career move with this well-respected Lead and develop your team, drive exceptional service standards, Professional Trustee specialist. Ref: 808600 SB whilst being the key contact for clients. Ref: 1369101 NC Operations Manager Pensions Fund Accountant London c.£65000 per annum Bristol to £35000 per annum Proactively manage third party administrators, contribute to Newly-created role, due to expansion, as a senior Accounts team ongoing internal process development. Ref: 1371814 SB member at this specialist pensions consultancy. Ref: 1374260 NC Client Relationship Manager Senior/Pensions Administrator & Projects Multiple locations £excellent Bristol, West Yorkshire, Scotland to £32000 per annum Progressive move with this industry-leading third party Multiple opportunities, various levels with leading consultancies. administrator for an ambitious Relationship Manager. Ref: DB/DC BAU as well as specialist projects roles. Ref: 1368271 NC 1372802 BC
Senior Pensions Administrator Trustee Consultant, Investments, in-house Birmingham to £30000 per annum Middlesex c.£60000 per annum Join a motivated team committed to providing reliable, high Use your pension scheme knowledge, ideally investment standards of administrative services. Ref: 1364246 NC governance, and trustee secretarial experience. Ref: 1374291 SB
Pensions Administrator, part-time/work from home Pensions Operations Manager Surrey £28500 per annum Bristol £excellent Work in a unique environment for an organisation that has Make your mark heading up several dedicated third party won many prestigious pensions awards. Ref: 1373917 JW Pensions Administration teams. Ref: 1371057 BC
School Leaver/Graduate Pensions Administrators Pensions Consultant Various locations across UK £in line with experience Surrey £excellent Entry-level opportunities for bright, driven individuals with Join an award-winning independent consultancy, providing leading pensions consultancies, with full training. Ref: governance and secretarial services to clients Ref: 1374366 BC 1372453 FR