UK - The Trades Union Congress is making wide-ranging changes to its pension plan to offset an MFR deficit of £8m.
The TUC Superannuation Society’s executive committee says “urgent corrective action” is needed to resolve the current situation.
Documents seen by IPN’s sister publication, Professional Pensions, say: “Under the requirements of the MFR the current contribution rate, 25% is insufficient to meet the shortfall and to avoid a negative certificate being issued by the actuary there would have to be a substantial increase to 47% in the firm’s contribution rate.”
The deficit has soared from £6.4m since December.
Proposals from the executive committee include:
- Reducing accrual rate on the DB scheme from 1/50 to 1/60.- Scrapping the scheme’s current early retirement provision.- Increasing the employer contribution rates from 25% to 29.6%.
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
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