News

In surplus
The aggregate funding position (total assets minus total liabilities) of almost 7,400 defined benefit funds is estimated to have improved over the month to a surplus of £0.3bn at end March 2010. This is the first time the index has been in surplus since end June 2008.
www.pensionprotectionfund.org.uk

The elixir of life
Money buys you a longer life, according to Club Vita.
In 70% of local authorities, household income predicts the area's life expectancy to within just a single year. Those living in wealthy Kensington and Chelsea live the longest in the UK to 86.6, six years above the average, while Glasgow, with lower average incomes, has the lowest life expectancy of anywhere in the UK at just 74.0 years.
www.hymans.co.uk

Clampdown
Many employers have been thinking of introducing employer financed retirement benefits schemes (EFRBS) to mitigate the effect of the higher earners' pension tax charge. According to Mayer Brown, the new anti-avoidance provision seems to prevent introduction of a new EFRBS, but it does not seem to prevent the continued use of existing FURBS (Funded Unapproved Retirement Benefits Schemes) or UURBS (Unfunded Unapproved Retirement Benefits Schemes).
www.mayerbrown.com

De-merger
Lane Clark & Peacock has advised Cable & Wireless on the impact of its de-merger on the company's £2bn UK pension scheme liabilities.
www.lcp.uk.com

Falling contributions
The Office for National Statistics in Pension Trends estimates that contributions to funded pension schemes fell from £64.2bn in 2007 to £59.8bn in 2008.
www.ons.gov.uk

Expats lose out
Expatriate pensioners living in Australia, Canada and South Africa have lost their battle to force the UK government to uprate their state pension in line with state pensioners living in the UK, as well as in line with those of expatriates living in countries with which the UK has reciprocal social security agreements.
www.lcp.uk.com

High default rate
Since 2007, the average default rate on defined contribution plans has remained constant between 78 and 81%.
www.PensionsDCisions.com

Be a friend
Pension consultants, advisers, providers and IFAs who raise awareness of the NAPF's Pension Quality Mark will be able to become a “Friend of Pension Quality Mark”.
The Pension Quality Mark is available to employers who meet basic criteria on contribution rates, governance and communications.
www.napf.co.uk

Hitting the right notes
Pitmans Trustees has been appointed independent trustee to the Steinway & Sons Pension Scheme.
www.pitmanstrustees.com

Losing favour
One in four employers report staff cutting their pension contributions, finds Punter Southall research.
www.puntersouthall.com