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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 @ 4:54 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…)

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 @ 10:54 am April 26, 2011

Employer Covenants monitoring levels worse than thought

It seems that the number of trustees monitoring employer covenants on a formal and regular basis, is a lot lower than originally thought.

Worrying figures from a recent survey of 800 trustees and 119 schemes, discovered that 37% of those who responded, carry out covenant reviews less than once a year. This is despite the Pensions Regulator’s guidance in 2010 clearly stating that regular monitoring should be scheduled. (more…)

Category : Employer Covenant — Tags: , — admin @ 10:43 am March 30, 2011

Simon Kew lifts the lid on employer covenant for The People Bulletin

With Employer Covenant still hitting the headlines again and again since the November release of The Pensions Regulator’s guidance on ‘monitoring employer support’.

The note from TPR focuses on Defined Benefit schemes where pension provision risk is taken on by the employer and not the employee. This means that the employer takes on maintaining the financial stability of the pension scheme. (more…)

Category : Employer Covenant — Tags: , , — admin @ 6:30 pm March 24, 2011

Employer covenant and art of reasonable affordability

With the release of the Pensions Regulator’s (TPR) latest guidance on ‘monitoring employer support’ in November 2010, employer covenant has once again been thrust into the limelight. Reasonable affordability, however, remains off stage and playing understudy to the headline act. (more…)

Category : Employer Covenant — Tags: , — admin @ 12:38 pm February 18, 2011

Regulatory guidance on Employer Covenant – Monitoring Employer Support

In November 2010, the pensions regulator updated its guidance for trustees on how to monitor the support from the employer, or ‘employer covenant‘. Here, we provide a brief overview of that guidance. (more…)

Category : Employer Covenant — Tags: , , — admin @ 5:54 pm January 25, 2011

Pension schemes, trustees and employer related investments – rule change

As of 23 September 2010, new rules have been applied to bring the UK into line with the EU on employer related investments, or ‘ERI’. The aim is to ensure that pension scheme assets are kept separate from those belonging to the employer – and ultimately the employer’s creditors. (more…)

Pensions Ombudsman and PPF Ombudsman to move to the Pensions Regulator?

In the Daily Telegraph on 24 September, a leaked Cabinet Office list was published, which showed that The Pensions Ombudsman and the PPF Ombudsman would become part of a single pensions regulator. It is not yet clear what savings are to be made by moving these two quangos to Brighton. (more…)

Employer Covenant gamble risks “aggressive” regulatory action

On 9th September Bill Galvin, the Pensions Regulator’s Acting Chief Executive, stated at the CBI Pensions Conference that the regulator would use its powers ‘aggressively’ against schemes that take risks on assessing employer covenant. The regulator is voicing its concern over low security schemes, whose sponsor covenant is insufficient to justify the risks taken within the scheme. (more…)

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