Press Releases

Commenting on today’s announcement of the DWP Consultation on the draft Pensions Dashboards Regulations 2022, Karl Lidgley, client manager for third-party administration, Hymans Robertson, says:

“It is good to see the publication of this consultation which covers many of the key aspects that will contribute to the successful introduction of the pensions dashboard. This should help to give much needed clarity on what needs to be done over the coming months and years. The pensions dashboard will be the most transformational event to support UK savers for retirement in our lifetime. As well as re-uniting people with their lost pensions, it will enable far more effective, personalised guidance to give savers the support they need for the best possible retirement. We know times are hard for people and as an industry we must do everything we can to maximise every possible penny people will have for retirement. A comprehensive working pension dashboard is fundamental to this goal.”

DB pension schemes with a 2020 triennial valuation could make significant PPF levy savings by updating their PPF valuation this year, claims Hymans Robertson. These schemes are particularly at risk from having to pay higher PPF levies than they need to in 2022 because their current PPF valuation is from 31 March 2020, when asset prices were depressed due to the impact of the Covid-19 pandemic. At the same time the leading pensions and financial services consultancy is reminding sponsors they need to be considering action well before the usual 31 March 2022 deadline to minimise their PPF levy.

Commenting on the Cushon purchase of Creative Pension Trust, Michael Ambery, Partner, Hymans Robertson says:

“The announcement about Cushon’s purchase of Creative is great news, and indication of a very busy Workplace Savings market in 2022. This is the first headline consolidation of Master Trust providers this year, and highlights a market that is moving in this direction. We believe this acquisition will provide real value for members."

Transferring a DB scheme into a superfund such as Clara-Pensions can provide savings of as much as 10% for employers, according to the analysis by Hymans Robertson in its revised paper ‘A Closer Look at Clara’. The paper has been updated following the TPR announcement that Clara-Pensions had successfully completed the assessment process for defined benefit consolidators.

Commenting on today’s DWP consultation outcome, Stronger Nudge to Pensions Guidance, Michael Ambery, Partner says:

“Any support to ensure consumers make the right pensions decisions and remain fully aware of the support that is available is welcome. We are pleased to see the consultation announcement but hope, that once implemented, it doesn’t become a tick box exercise in which consumers simply opt out of receiving guidance. It will be vital that employers, trustees and the industry look at the Guidance that is available and work together to increase both engagement and awareness. They must take responsibility for highlighting the importance of life-changing financial decisions at all stages of the pension and savings journey."

Hymans Robertson acted as lead adviser to the Imperial Tobacco Pension Fund (the “Fund”) in the completion of a £1.8 billion buy-in with Standard Life, part of Phoenix Group, covering the Fund’s liabilities in respect of c.6,600 members.

The Institute of Chartered Accountants’ Staff Pensions Fund has today announced the completion of a £50 million bulk annuity buy-in transaction with Canada Life Limited. This is the third successful transaction for the Fund and its first with Canada Life.

Hymans Robertson, the leading pensions and financial services consultancy, has appointed Iain Pearce to Head of Alternative Risk Transfer Solutions. Iain will lead the firm’s advisory service supporting DB pension scheme trustees and sponsors and market participants considering new and emerging risk transfer options. These include superfunds, capital backed solutions and alternative insurance products.

A UK pension scheme (“the Scheme”) that is sponsored by one of the largest Fortune 500 Companies has completed a £150m full scheme buy-in. This transaction fully insures the benefits for all of the Scheme’s 400 pensioner and deferred members and is expected to be converted to buy-out in the short term.

20-20 Trustees are the sole trustee for the Scheme and they engaged Hymans Robertson to act as lead transaction adviser, with legal advice provided by Gowling WLG and Aon providing the Scheme Actuary and investment advisor roles and XPS the Scheme administrator.

£15bn in deficit contributions could be collectively saved by FTSE 350 companies choosing the Bespoke funding route under TPR’s proposed new TPR funding regime, according to analysis in Hymans Robertson’s annual FTSE 350 DB Report.   The report shows that 40% of FTSE 350 companies should consider this strategy, with the remaining 60% already sufficiently well-funded to instead follow TPR’s Fast Track approach with their existing funding strategy.  The leading pensions and financial services consultancy calls on corporates to start considering and preparing for the route they will take as a priority, and to seriously consider whether the Bespoke route is a viable option, given the savings that could be made.

Climate risk could add £25bn of additional deficit risk to FTSE350 pension liabilities over the next 15 years according to Hymans Robertson in its annual FTSE 350 analysis. To prevent this massive increase in liabilities, climate risk needs to be built into DB funding strategies, claims the leading pensions and financial services consultancy. Funding strategies need to be adopted that minimise the impact of climate risk on pension scheme assets and liabilities, and employer covenants it warns.

Commenting on her hopes for 2022 for DB Pensions Schemes, Susan McIlvogue, Head of DB Pensions, Hymans Robertson says:

“We expect DB schemes to face a number of governance challenges in 2022, many of which are linked to the Pension Schemes Act 2021. New regulatory powers and notifiable events—backed by significant fines and criminal offences—will encourage sponsors to think differently. A green governance perspective will continue to build momentum, with more schemes affected by climate-change reporting obligations. The delayed single Code of Practice will come into force as early as summer next year, meaning a significant ramping up of governance polices and processes. On top of this, 2022 looks set to be the year when most schemes tackle GMP equalisation in earnest."