UK Pensions - DB Transfers and Issues for 2018

UK Pensions Issues in 2018

Since pension freedoms were introduced, a flood of activity has taken place in the UK DB and DC pensions industries. The first three papers below take an in-depth look at the impact of DB pension transfers.

The remaining papers survey other UK pension-related issues including risk awareness, best practices for DC, the challenges of a changing demographic landscape, and insights into the recent Carillion crisis.

Cashflow Awareness: Transfers out (LGIM, 2018)

(For compliance reasons, this paper is not accessible in the USA or Canada)

Managing cashflows effectively has become increasingly important for DB pension schemes. LGIM considers the implications of transfers out of pension schemes in the short and long term and how schemes can best prepare.

The impact of DB transfers on the UK pensions industry (Willis Towers Watson)

This publication sets out the key DB pensions issues from a number of different perspectives to highlight some of the issues the industry needs to be considering in relation to the impact of pension freedoms.

2017 a record year for UK DB transfers - is this a new normal ? (LCP, Feb 2018)

2017 was a record year for DB transfer activity. Nearly 2% of deferreds requested a quotation in Q1 2017, and this remained a steady rate throughout the year, nearly double the rate for the two previous years.

10 Best Practices for Global DC Plans (SSGA)

SSGA identifies and discusses 10 best practices for global defined contribution pension plans, including establishing a clear and flexible governance framework and a global investment philosophy, as well as promoting higher savings rates.

UK Pensions De-Risking Report 2018 (Willis Towers Watson)

This 21-page report by Willis Towers Watson examines the key themes in the longevity hedging and bulk annuity market over the coming 12 months.

Demographic dividends, corporate challenges (LGIM, Nov 2017)

(For compliance reasons, this paper is not accessible in the USA or Canada)

Life expectancy dramatically increased after WWII, a remarkable feat in itself and a resounding success story for humanity, but at the same time, demographic changes such as these are creating other types of challenges for corporations.

UK Pensions: Current Issues (Hymans Robertson, Feb 2018)

Upcoming changes to circumstances in which DB scheme members must obtain transfer advice may force schemes that pay higher than minimum transfer values to calculate cash equivalents differently.

UK DC Pensions Quarterly Update (LCP, Feb 2018)

LCP provides an update on a host of topics relevant to the UK DC pensions market, including the latest regulatory headlines, issues related to costs and charges, and auto-enrolment.

Global Pension Asset Study (Willis Towers Watson, 2018)

22 pension markets (in total over $41bn of pension assets) are covered by this Global Pension Assets Study, accounting for nearly 70% of the GDP of these economies. The study examines the largest 7 markets in more detail.

UK DB Pensions Universe Risk Profile: The Purple Book (PPF, Dec 2017)

The Purple Book from the PPF provides data on 5,588 schemes within the UK DB pensions universe. The report details changes to demographics, funding levels and sensitivities, and asset allocations, as well as discussing risks.

Mercer Global Pension Buyout Index, Dec 2017

Mercer Global Pension Buyout Index is a monthly report, monitoring the trends in bulk pension annuity transactions and their prices in the US, Ireland, UK, Canada, the Netherlands, and Germany.

Current TPR objectives give ‘false comfort’ to pensions system - Carillion trustees

A select committee met on 30 January 2018 to discuss the Carillon crisis. A representative from Carillion's DB pensions group and an independent trustee discuss the 'false comfort' provided by The Pensions Regulator to the system.

ABOUT THE AUTHOR

Andrew Perrins is a former Actuary and Asset Allocator. After qualifying as an Actuary, he worked for 15 years in investment management, serving as Director of Asset Allocation for Abbey Life and for Chase Manhattan, before setting out on a more entrepreneurial path. 

To contact him, email [email protected]