Defined Benefit

The economic crisis provoked by Covid-19 led to a 5.1 percentage point fall in the average defined benefit (DB) funding position in the first three months of 2020, according to Legal & General Investment Management (LGIM).

A poll of UK defined benefit pension schemes shows many are no longer in support of The Pension Regulator’s (TPR) proposed funding code after a second look at its implications, according to Aon.

The Society of Pension Professionals (SPP) estimates only 5-10% of scheme sponsors will suspend or reduce contributions during the coronavirus pandemic while majority have no need to alter their payment schedules.

Pension scheme trustees considering requests by employers to delay contributions into defined benefit (DB) schemes need more stringent plans for how contributions will be ‘switched on’ again, according to Lane Clark & Peacock (LCP).

The proportion of defined benefit (DB) schemes closed to future accrual has increased by 18 percentage points over the last five years, according to Barnett Waddingham.

The ongoing coronavirus pandemic will encourage many people to reconsider their pension benefits and The Pensions Regulator’s (TPR) warning to stay put in defined benefit (DB) schemes is likely to be ignored by many, Premier says.

Pension schemes should be unconcerned that Pension Protection Fund (PPF) levy bills will rise drastically this year as a result of the Covid-19 crisis, the lifeboat fund says.

The Fire Brigades Union (FBU) has filed court proceedings over the government’s withholding of improved pension benefits for its employers, citing it a ‘dirty trick’.

Around 50 advice firms have surrendered their pension transfer ‘gold standard’ status after running into issues renewing professional indemnity insurance (PII) on pension transfers, according to the Personal Finance Society (PFS).

The coronavirus pandemic is unlikely to curb pension scheme enthusiasm for buy-ins and buyouts, says Hymans Robertson.