UK - Pension initiatives could be disrupted by Chancellor Gordon Brown decision to axe 40,000 jobs in the department for work and pensions, a leading consultant warns.
The DWP bears the brunt of Brown’s plans to axe more than 100,000 civil service jobs.
But Mellon Human Resources and Investment Solutions’ head of technical services Kevin LeGrand says that while the cuts are unlikely to affect the Pensions Bill, they could have an impact on work needed following its implementation.
He said: “At the moment it is difficult to assess the impact it will have, but what I would not like to see is an adverse effect on the large number of important initiatives the DWP will have to be involved in because of the Pensions Bill.
We have a new regulator coming in and the DWP are working hard to raise awareness of pensions and it would be a great pity if we started to see those good inroads that are being made suddenly go off track.
“We can’t afford to lose these or have them watered down in any way.”
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.