UK - The £1.8bn Essex County Council pension fund is the only scheme to have managed a full bulk transfer of member AVCs from Equitable Life, a survey shows.
It said that while many schemes had attempted partial buyouts from the beleaguered insurer, Essex CC was the only scheme to have completed a full buyout for all members under the age of 50.
The council took the decision as it claimed that its members’ funds were at danger at Equitable Life because its position “could only get worse”.
One of the key problems faced by schemes that wished to carry out buyouts from Equitable was the cost of doing so. Earlier this year the J. Sainsbury Pension & Death Benefit Scheme tried to buy out all its members’ funds, but said the terms offered by Equitable Life were unacceptable to its members.
The survey also revealed that many companies such as BT, Imperial Tobacco and Barclays have left their Equitable Life AVCs open and that some members were still making contributions, in spite of being warned about the risks involved.
LexisNexis Occupational Pensions survey concluded that many schemes had left their Equitable Life AVCs open over legal concerns at enforcing such decisions on scheme members.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).