Pensions - Articles - JLT issue their latest DB pension index update


JLT Employee Benefits (JLT) has updated its monthly index, showing the funding position of all UK private sector defined benefit (DB) pension schemes under the standard accounting measure (IAS19) used in company reports and accounts.

 As at 30 November 2018, JLT estimates the total DB pension scheme funding position as follows:

 

 Charles Cowling, Chief Actuary, JLT Employee Benefits, comments: “The Lloyds Banking Group case on GMP equalisation continues to keep the pensions industry awake at night. The industry is slowly coming to terms with the scale of the task ahead and the efforts necessary to resolve the sex discrimination caused by GMPs. Pension schemes are going to have to recalculate benefits for millions of members, demanding fiendishly complicated calculations that will incur huge additional costs and resources. Moreover, ongoing administration costs for pension schemes are likely to increase significantly as a result.

 “Of course, this blow has come at a time when UK pension schemes and indeed, the wider economy, are facing a looming front of uncertainty as the Brexit deadline draws ever nearer. At this stage it is impossible to know what impact Brexit will have – over either the short or longer term – but that very risk, and accompanying market uncertainty and volatility, is all the more reason for trustees and companies to be looking to take pension risks off the table.

 “The potential good news in all this, is that we may have an opportunity to simplify pension scheme benefits, using conversion legislation recently introduced. We will very soon be in a position to calculate the increase in total value required to each pension scheme member’s benefit. If this is done at the same time as benefits are automatically converted into a much simplified form (including the abolition of all GMPs) then not only will individual pension scheme members get a more straightforward benefit but this simplicity will ultimately flow through to lower costs for companies.”
  

Back to Index


Similar News to this Story

LGPS Funds a valuation anyone
Graeme Muir from Barnett Waddingham looks at the current state of LGPS Fund valuations and what to expect.
Research reveals pension tax relief timebomb set to hit
New analysis published by mutual insurer Royal London has shown, for the first time, how many of today’s workers are at risk of breaching the £1.03m l
New snapshot of what you have done with pension freedom
To mark the upcoming anniversary of pension freedoms, Canada Life has commissioned research1 looking at the behaviours of people who have flexibly acc

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.