UK - Scheme-specific funding proposals will put trustees back in the driving seat, OPAS chief executive Malcolm McLean.
Speaking at the recent Pension Show, he said new funding proposals – due to be implemented by April 2005 – would give “massive powers” to trustees who would be put in a position to set contribution rates and put the scheme into wind-up if these demands were not met.
But he added that these new powers should only be used in extreme cases. McLean said: “The requirement is that the employer, trustees and actuary will have to work together to decide on a scheme-specific funding format.”
He also warned that implementing scheme-specific funding proposals would make employers “think carefully about running a defined benefit pension scheme”.
But delegates said that while they recognised there would be transitional costs in any new funding regime, the end result would be much better than the minimum funding requirement.
Hymans Robertson partner and Pensions Board chairman Ronnie Bowie said: “The MFR was an extraordinarily bureaucratic thing to do.
“Whichever measure you will end up with as a replacement will be a blessing.”
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
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