UK - Retrospective compensation is "imperative" if the government is to move forward effectively with pension reform, the Pensions Management Institute spring conference was told.
Government pensions adviser Ros Altmann will highlight a lack of progress since the Pensions Act 1995 and tell delegates that backdated compensation is key for restoring confidence.
Altmann – who joins an array of industry experts speaking at the conference at London’s Hilton Hotel on Park Lane – has been heartened by growing support from MPs for retrospective payments.
Altmann said an amendment to the Pensions Bill would be the catalyst for restoring confidence.
She said: “In 1995 members were told that measures were being introduced to increase security with a new regulator, more member-nominated trustees and requirements to ensure proper funding.
Nearly a decade on and members are being told exactly the same but this time with the knowledge that they could still lose everything tomorrow.”
Other speakers at the conference include pensions minister Malcolm Wicks, pensions board chairman Ronnie Bowie, Mercer’s Piers Bertlin and Hewitt Bacon & Woodrow’s Raj Mody.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.