Testing the water
The Marine Pilots case was extremely complicated. It involved a multi-employer defined benefit (DB) scheme, and looked to clarify 39 separate issues. Most of those relate solely to the Pilots National Pension Fund (PNPF), but there are three key areas that can be applied across the board:
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Educating public sector workers of the reasoning behind any changes will help cushion the blow |
Damage limitation
In March this year, Axa commissioned an online survey of 2,000 people to assess what they thought about public sector pensions compared with those available to the private sector. Two-thirds of those surveyed believed it is unfair that pensions for those in the public sector are generally better than those in the private sector. As if backing up this research, an initial report into public sector pensions by Sir Alan Budd, under the auspices of the Office for Budget Responsibility (OBR), is expected to deliver what the press refers to as “a dose of economic reality on the state of Britain’s pensions”.
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Going back in time
The best-laid schemes o’ mice an ‘men gang aft agley. Or, in prosaic English: in spite of everything, stuff goes wrong. The distinction between the Scots and the English here is more than simply one of translation, as it would seem that Scottish courts view human failings through a softer lens than the English – but I am getting ahead of myself.
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Funds may choose to completely delegate their management, or only partially outsource through implemented or delegated consulting |
Passing the reins
Fiduciary management has caught on in global markets, but the UK is moving cautiously and taking its time in picking up on the trend
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The clock often runs out on market opportunities for schemes with outdated information |
All in the timing
Effective management of defined benefit scheme risk requires both timely and accurate information – which is rarely to be found
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Made in heaven
Is there a future for legacy defined benefit plans, and what would the perfect scheme look like today if it was designed from scratch?
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Message received and misunderstood
In a constantly changing environment, how should schemes be communicating with their members and what are the key issues affecting understanding of investment decisions?
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Charles Young |
Critical position
Schemes and their sponsors face some tough decisions in relation to this year’s actuarial valuations
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The first steps
Schemes undergo many changes in their lifetime, all of which can threaten the integrity of the data. Cleansing is therefore a necessary journey to ensure accurate calculations
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A valuable import for the UK
The success story of fiduciary management in the Netherlands raises the question of whether it could benefit UK schemes
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Turning the spotlight on scheme accounts
Far from lacking in importance, an efficient and transparent accounting function is essential for any pension scheme to run smoothly and avoid problems at year end
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Open for business
The downturn may have delayed schemes’ decisions to offload liabilities via buyout, but the market is ripe for development in 2009
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Extract more value
Employers can take steps to increase the worth of employees’ benefits, while at the same time reducing costs to the company
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On your marks for big rewards
The effect of poor quality data can wreak havoc for administrators and scheme members, leading to increased liabilities
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