Aries monitors every development in new and proposed legislation and official guidance. Clients are kept up to date via the website, email alerts and tweets. Aries serves as a one-stop source of intelligence on everything that is going on and coming up. Aries doesn't miss anything of significance.
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"No-one will have to buy an annuity" is hardly a policy. The government stands accused of abdicating responsibility for the consequences of pension freedom. By scrapping the former minimum income requirement for accessing flexible drawdown as part of the new freedoms, the government in 2014 was declaring it had no interest in the extent to which pension savers exhaust their savings before death, and fall back on state benefits.
The Pensions Regulator (TPR) has published
its Annual Funding Statement
for defined benefit (DB) pension schemes. The headline is a warning: trustees and sponsoring employers of DB schemes must do more to protect member benefits.
'Strong' employers should consider contributing more money to reduce scheme deficits over a shorter period of time, especially where they are paying out high dividends. Where there is a weak employer, trustees and employers should
work together to give greater consideration to the needs of the scheme. Last year, the average length of a recovery plan was eight years.
TPR's warning stems from concerns about the growing disparity between dividends and deficit-reduction payments and expects fair treatment between shareholders and trustees. While dividends may be the most common form of distributions, trustees should also be alert to other forms of covenant leakage (ie when value leaves the
company) - for example loans to intra-group companies - when considering what contributions are affordable and whether the scheme is being treated fairly.
If a scheme is not treated fairly, TPR will act by using existing powers, while working with the Government to implement new powers proposed in DWP's DB White Paper.
TPR has stepped up its proactive DB . . .
09 Apr 2018