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...The Debenhams deal has been made possible largely thanks to a substantial recent improvement in funding positions for defined benefit pension schemes, which promise members a pension for life — typically...
...Industry-level aggregate data from the Pension Protection Fund shows that UK defined benefit pension plans invested 10 per cent of their equity allocations into domestic listed companies in 2022, down from...
...These “buyouts” — of pension plans and the assets backing them — are regarded as the gold standard for safeguarding benefits....
...Analysis from The Pensions Regulator suggests that more than 3,750 of the UK’s defined benefit-style retirement plans have assets in excess of their liabilities or are in surplus. Read more here...
...The House of Commons work and pensions committee said on Tuesday that just 4 per cent of the 5,100 defined-benefit pension schemes in the private sector were open to new joiners last year, down from 11 per...
...The $38tn US retirement system is one of the world’s largest, and US employers were among the first to shift from defined benefit pensions to defined contribution plans....
...The proposals come after the funding positions of defined benefit retirement plans have improved significantly over the past 18 months due to rising interest rates making it cheaper for the schemes to meet...
...workers, who tend to have defined benefit plans, cite pensions as a key reason they stay on the job....
...But UK business has been brisk: rising interest rates have transformed funding levels in defined benefit pension schemes and enabled companies to consider offloading future liabilities....
...So-called defined benefit pension funds are already subject to disclosure requirements on their asset allocation....
...The pension tax change is expected to be closely watched by other corporate sponsors of “defined benefit” plans against the backdrop of much-improved funding positions....
...The contrast between the defined contribution schemes of private companies and the inflation-linked defined benefit schemes of the public sector has become increasingly stark....
...The regulator estimated that the combined value of assets for 5,100 company defined benefit plans fell by around £425bn over 2022, from £1.79tn to £1.36tn — equivalent to a 24 per cent drop....
...But ministers (and opposition politicians) have also been eyeing local government defined benefit schemes as an easy pot of money to unlock growth. It is not that simple....
...There appears to be no circumstances where local authority pension benefits are reduced....
...No regulated advice or guidance (which is free from the government-backed Pension Wise service) was sought for 37 per cent of income drawdown plans taken out in the 2022-23 tax year....
...Giving evidence to a parliamentary committee Paul Maynard, pensions minister, said more than half of the UK’s 5000 corporate defined benefit plans were now fully funded....
...Employers are not obliged to pay into a pension plan chosen by their workers....
...The shares and options would vest over three years and Keel would also receive pension and other benefits. His payout could be substantially higher if he exceeds his targets and the share price rises....
...The government is consulting on proposals to enable employers to use surplus funds built up in defined benefit plans. These schemes currently serve around 10mn members....
...Portfolios of private assets are being dumped by so-called defined benefit pension schemes — funds offering members a set amount in retirement — as they try to prepare themselves for a buyout by an insurance...
...pension plans, to disclose their equity allocations to the UK and overseas....
...After that date there are some changes to pension death benefits which you may want to avoid by doing the crystallisation before then....
...The UK’s £1.4tn “defined benefit” pensions industry has been switching to corporate debt for its higher yields and to prepare the schemes for potential sales to insurers, analysts say....
...The proposals include a requirement for defined contribution pension schemes to disclose from 2027 how much they invest in the UK....
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