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Budget 2012 – A Brief Round-up

In light of Budget 2012, there are a few areas of interest for those looking at the covenant of their employer and its ‘reasonable affordability’ or for employers that are finding money is short.

The main headline in this regard, is the reduction in the Corporation Tax rate to 22% by 2014 (24% from April 2012). Of course, any employer liable for Corporation Tax will welcome this news, and the additional pounds left in their cashflow. This reduction could help some businesses stay in the UK, always a consideration in covenant reviews, where they may have previously considered moving to a country with a lower tax structure.

There has been a tightening though, with an increase in stamp duty to 15%, where a company buys a residential property over £2m. This came in to force on midnight 21 March 2012. The Chancellor has sent a very clear message here, that residential property sales cannot escape taxation. (more…)

Category : Employer Covenant — admin @ 11:45 am March 30, 2012

PRESS RELEASE: Jackal joins forces with leading firms to launch specialist admitted bodies pensions offering

Atkin & Co, Pinsent Masons LLP and Jackal Advisory have joined forces to bring a specialist offering to market for the public sector, focusing specifically on meeting the needs of not for profit bodies and Charities that are admitted bodies to the Local Government Pension Scheme (LGPS).  The trio will offer a one-stop liability management service to help these organisations manage their legal, financial, accountancy, actuarial and administration issues.

(more…)

Category : Employer Covenant,Savants in the News,Uncategorised — admin @ 2:42 pm January 25, 2012

Sponsor Affordability and the Use of Security

A recent survey of leading chief executives has highlighted their concern that spiralling defined benefit costs, the impact of market movements on funding and potential EU solvency issues are all constraining UK business performance. I am sure that a further concern for these business leaders will be the Pensions Regulator’s recent statement that he will help trustees ‘bolster recovery plans’ in 2012 – quite how, nobody yet knows. (more…)

Category : Employer Covenant — Tags: , , , — admin @ 12:21 pm January 5, 2012

‘Gold-plated’ pensions for top company directors

A new study has revealed that, after topping up their pension pots with cash, leading company directors receive retirement payments of up to 29 times more than the average worker. (more…)

Category : Employer Covenant — Tags: , — admin @ 11:23 am August 12, 2011

Pensions Week Feature: Evaluating an employer’s covenant and the need for external support

This week Simon Kew featured in Pensions Week magazine. Read the article on the need for employer covenant external support.

The industry has a pretty firm idea of what the Pensions Regulator (TPR) means by the term ‘covenant’ – the ability and willingness of an employer to make good its deficits. Where significant doubt remains, is around the assessment of covenant, and what should be paid for external support. (more…)

Category : Employer Covenant — Tags: , — admin @ 3:27 pm July 25, 2011

Top trustees voice concerns over funding deficits and employer covenant

Trustees’ top concerns are funding deficits and employer covenant, according to a new study.

The research, published by MetLife in the ‘UK Pension Risk Behaviour Index’, shows ‘funding deficits’ and ‘employer covenant’ overtaking issues such as ‘investment management style’ and ‘asset diversification’ in the concern stakes. (more…)

Category : Employer Covenant — Tags: , , — admin @ 4:01 pm July 5, 2011

Jackal’s Simon Kew comments on the Bonas settlement

A recent article in Pensions Management drew much attention to the Bonas case.

The Pensions Regulator (TPR) made the decision to settle the Bonas case by issuing a contribution notice (CN) of £60,000. This has been seen by many as a rather ‘Pyrrhic victory’ and described by one leading lawyer as “in particularly bad grace”. (more…)

Category : Employer Covenant — Tags: , , , — admin @ 3:54 pm July 1, 2011

Tranche warfare

The Pensions Regulator (TPR) is often to be heard talking about ‘tranches’. In their lexicon, a tranche is the cohort, group or section of each year’s schemes that go through the Part 3 valuation process. (more…)

Mounting pressure for Trustees

Mounting pressure is being put on trustees to micro manage fund managers and formally define the responsibilities they have to the scheme.

There are two issues that surround this. The first being that trustees have never had this as one of their fiduciary duties. The second is that fund managers are unlikely to want to have their role defined by a trustee, let alone be answerable to one. (more…)

Category : Employer Covenant — Tags: , , — admin @ 11:24 am April 28, 2011

Understanding employer covenant requires team work!

Regardless of promises from the government that the recession is over, we all know that in reality things couldn’t be further from the truth.

As the fragile UK economy limps on, the one thing that we can be encouraged by is the rise in corporate transactions. One consequence of this is an increased importance in monitoring employer covenants. (more…)

Category : Employer Covenant — Tags: , , — admin @ 9:54 am April 26, 2011

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