UK - Delegates at the NAPF's annual conference were given an insight into the decision process behind three separate defined benefit scheme reviews in a series of workshops.
One scheme opted to retain an open final salary plan, another opted for the career average revalued earnings option and the third closed in favour of a defined contribution scheme.
Diageo told delegates it is committed to the £2.9bn defined benefit pension scheme.
UK pensions administration manager Paul Charles said there was no “compelling reason” to change the running of the scheme.
“It doesn’t make sense to change the current investment approach, and Diageo is able to cope with risk better than most.”
Building society Nationwide said it opted for a career average revalued earnings scheme to cut pension costs by a quarter.
Head of pensions and payroll Michael Fairlamb said the sponsoring employer took the view to share the investment risk burden with employees.
Fairlamb cited increased longevity, lower investment returns, loss of dividend tax relief and extinguished surpluses as causes for the necessary DB scheme closure.
He said: “We wanted to achieve a liveable pension that was easily understandable.
“We wanted to avoid employees sustaining investment risk and the future accusation that the resultant pension wasn’t enough to live on.”
Prudential closed its three final salary schemes to new members due to “changing working patterns and demographics”, according to scheme manager Jim Bruce.
The financial services group said that the final salary schemes – Prudential Staff Pension Scheme, Scottish Amicable Staff Pensions Scheme and M&G Group Pension Scheme – had all enjoyed a good take-up rate, but they had run their course.
A money purchase scheme was set up for new members with a target of an 18% total contribution – 12% from the employer and 6% from the employee.
Pension freedoms could generate as much as £1.9bn a year in tax revenue for the next 10 years, according to research by the Pensions Policy Institute (PPI).
The Pension Protection Fund (PPF) has conceded it does not have "all the data we need to calculate" the impact of last month's ruling that some benefits may be unlawful.
A looming court decision on gender equalisation of pension schemes could hit FTSE 100 profits by up to £15bn, Lane Clark and Peacock (LCP) says.
Dutch custodian KAS Bank has created a fintech solution to help schemes save on costs and improve transparency of currency hedging strategies.