Press Releases

Half of DB Scheme Trustees (50%) believe the pandemic has increased the need for schemes to invest in engagement strategies about member options and provide access to financial advice for members, according to research from Hymans Robertson. The fallout from Covid-19 has also compounded the need for those approaching retirement to review their plans, according to the leading pensions and financial services consultancy, as it warns that Trustees must take action to implement these changes.

Commenting on the joint discussion paper by The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) ‘Driving Value for Money in DC Pensions’, Laura Andrikopoulos, Head of DC Governance, Partner says:

“We welcome the joint TPR/FCA discussion paper on assessing value for money in DC schemes. A common framework is essential to support members’ in understanding to what extent their current arrangement provides value regardless of its overarching trust or contract based structure. Currently there are a number of definitions of ‘value for members’ and ‘value for money’ in play which hinders proper comparison and transparency. We look forward to seeing a joined-up approach to value assessment in DC pensions that puts member outcomes at the heart of its considerations of what really constitutes good value, as opposed to a narrower focus on charges that fails to capture the complete picture.”

Commenting on the DWP Consultation ‘Strengthening The Pensions Regulator's Powers: Notifiable Events (Amendments) Regulations 2021’, Laura McLaren, Partner says:

“The latest consultation from the Government starts to fill in the much anticipated detail on proposed changes to the notifiable events regime. Extending both the list of notifiable events, and the duties on employers to provide information to the Regulator about proposed corporate transactions, the draft Regulations are doing pretty much what was promised ahead of the 2021 Act."

Commenting on the scrapping of triple lock for 2022/23, Chris Noon, Partner, says:

“The triple-lock used to increase State pension is an important long-term protection for pensioners. Too many pensioners are still living on incomes that are below the pensioner poverty threshold despite years of the triple-lock being in place. The unusual circumstances of furlough means that the triple lock formula is not fit-for-purpose for the April 2022 State pension increase. This is short-term technical issue and we are pleased that the Government has not been persuaded to abandon the triple lock completely but has simply accommodated a one-year anomaly. The UK already has one of the worst State pensions across the OECD. Throwing out the triple-lock would have risked pushing more pensioners in to poverty.”

The Hymans Robertson Foundation’s fifth birthday this year will be marked with it offering an additional series of grants totalling £45,000. Five awards of £5,000 will be given to the Foundation’s smaller charity partners – FARE Scotland, SportInspired, TLG – Transforming Lives for Good, Works + and MyBnk. Each charity will be able to allocate this grant to meet their individual charity’s needs. In recognition of the firm’s local charity partnerships, which are managed by teams of volunteers within each Hymans Robertson office, an additional £20,000 has also been allocated to be distributed to local charity partners.

Hymans Robertson has been listed as a signatory to the UK Stewardship Code 2020 by the Financial Reporting Council (FRC). The Stewardship Code ‘Code’ sets high standards for participants in the financial services industry to demonstrate their stewardship practices. This marks the leading actuarial and pension firm’s continued commitment to addressing responsible investment issues across its business and follows the recent launch of a new action group, The Climate Impact initiative, and the firm becoming a member of Pensions for Purpose.

Commenting on the Stronger Nudge to Pensions Guidance Consultation, Michael Ambery, Partner says:

“We fully support any assistance that can help members with decision making as they approach retirement. So this consultation’s aim to understand whether nudging individuals in their decision making will improve these decisions is very welcome. Providing the right and most appropriate advice, in a way that will help individuals make the best decisions for their own circumstances, is critical as they access or transfer their pension. It is imperative that nudges, guidance and signposting continue right up to the point of retirement as support is both timely and critical, and the repercussions of poor decisions can be significant."

Commenting on the Interim response to the consultation on TPR’s new code of practice, Laura Andrikopoulos, Head of Governance Consulting, says:

“We welcome an update from TPR on the progress of the consolidated Code of Practice which could have a significant impact on schemes’ governance processes and the amount and attention devoted to good governance. With the underlying regulations having been in force since early 2019 it is important that the UK pension system starts to comply sooner rather than later. It's positive there has been so much engagement with TPR with the consultation, although this has meant the introduction has been delayed beyond the original timetable. Many schemes do however need to start undertaking their gap analyses now to ensure they are well prepared for the Code’s introduction.”

Commenting on the closed public service pensions consultation: Cost control mechanism, Robert Bilton, Head of LGPS Valuations, says:

“We welcome the proposed changes to the mechanism, and the stability these will bring to future cost cap valuation results. In particular, the ‘economic check’ will help to reduce the potential for ‘perverse’ results to occur. The check should make it less likely that we will see a recurrence of the situation where benefit improvements are proposed at the same time as contribution rate increases from the 2016 actuarial valuations."

Hymans Robertson, the leading pensions and risk consultancy has promoted Callum Stewart to Head of DC Investment, who will manage and embed the firm’s climate and responsible investment strategy.

With 13 years’ experience in the pensions industry, Callum joined Hymans Robertson in 2015, and is a Fellow of the Institute and Faculty of Actuaries. Callum is responsible for DC Master Trust and single-employer clients, and has been actively involved in driving the firm’s approach to tackling climate change and responsible investment. Callum recently co-founded an industry action group to encourage all pension providers to make a climate impact investment option available to all DC savers across the UK.

Companies can cut the cash costs of their DB pension scheme by up to 30 per cent if they implement an effective endgame strategy instead of following the herd and heading down the TPR Fast Track route, according to the latest modelling by Hymans Robertson.

As many as 81% of IFAs believe that environmental, social and governance (ESG) risks are ‘extremely’ important in the construction of client portfolios, according to research by Hymans Robertson Investment Services (HRIS). While it is encouraging to see this appetite, advisers must approach responsible investment with care, and develop an understanding of the potential implications on their investments and costs warns HRIS.