Press Releases

Commenting on the DWP Consultation “Stronger nudge to pensions guidance” Michael Ambery, Partner, Hymans Robertson says:

“We warmly welcome the DWP Consultation “Stronger Nudge to Pensions Guidance” and fully support the use of signposting. We believe signposting would likely improve outcomes for individuals and ensure products meet an individual’s needs, as well as providing awareness of other pensions and savings products. Signposting would also provide much needed awareness and education on options at the point of retirement, and stop a generation from sleepwalking into making default decisions that may be detrimental.”

Commenting on GMP Equalisation Working Group’s “Guidance Note on GMP Conversion”, Matt Davis, Head of GMP Equalisation, says:

“Resolving GMP equalisation has involved just over thirty years of hurt for the industry, so today’s release of the GMP Equalisation Working Group’s “Guidance Note on GMP Conversion” will be welcome news, as will the update from PASA on upcoming guidance. The guidance sets out practical examples based on approaches developed for some conversion projects for early adopters."

Commenting on the Pensions Dashboards Programme (PDP) Call for Input on Staging as it reaches the deadline for response, Karl Lidgley, Client Manager Third Party Administration at Hymans Robertson, says:

“We fully support the PDP’s aim of “enabling individuals to access their pension’s information online, securely and all in one place which will help supporting better planning for retirement and growing financial wellbeing."

“The fact that a vast number of pension plans are lost or unclaimed is a vital factor in the timing of the stages for the rollout. The ABI estimated that there are 1.6m lost pensions plans with the Government predicting there will be 50 million dormant and lost pensions by 2050. This orphaned pension problem is only going to increase due to a rise in job changing, particularly as a result of the coronavirus pandemic, making it an even more urgent issue."

Hymans Robertson is supporting and driving a new action group, The Climate Impact Initiative, which aims to encourage providers to make climate friendly impact investment options available for all savers regardless of plan size. The newly formed Initiative is seeking the support of pension plans, with no cost or contractual commitment, to help grow the voice of asset owners to compel providers to address the needs of defined contribution pension savers.

Commenting in response to the DWP consultation on 'simpler annual benefit statements' on the deadline for submissions, Greer Flanagan, Senior Consultant, Hymans Robertson, says:

“We welcome this consultation and fully support the ambition for the proposed simplicity of benefit statements and the advantages that go alongside this. The consultation proposes a two-page benefit statement and with our experience of moving some of our clients to this already we can see both advantages and disadvantages. The proposed content is excellent but the challenge is to contain any supplementary information whilst keeping it on two pages. While we applaud the aims of the consultation, we also have some concerns around the proposed timescales."

Commenting on the public service pensions consultation: discount rate methodology, Robert Bilton, Head of LGPS Valuations, commented:

“We welcome today’s consultation on the SCAPE discount rate methodology as it affects one of the most important assumptions used to determine how much employers should pay into the unfunded public sector pension schemes. The consultation, and its focus on stability, is not surprising after the significant increases in employer contribution rates to these schemes after the last round of valuations at 2016."

“It is good to see that the DWP is progressing with plans around the assessment of fees for private markets investments. We remain concerned, however, that these changes do not appear to be in the interest of improving outcomes for members and feel these will stifle, not support, innovation. We feel the changes will perpetuate the industry’s focus on costs and charges, and not on improving member outcomes."

“We welcome this forward-looking consultation from the DWP focusing on the future of defined contribution schemes. We believe that consolidation, if approached with individual member needs at the heart, can lead to better long-term retirement outcomes. Although this is a direction of travel we support, there is the risk that too quick a transition will not lead to better outcomes because we’ll lose some inability to learn from innovation."

Charities facing the financial strain from the pandemic could reduce their annual cash contribution to their DB pension schemes by between 35 and 65 per cent if they pledge security to their pension scheme and choose a bespoke funding plan under the proposed new DB funding regime rather than adopting the alternative fast track option, according to analysis by Hymans Robertson. In its annual report on DB pension funding in the charitable sector, the leading pensions and financial services consultancy found that charities could significantly reduce their pension cash contributions by pledging security to support a lower funding target or longer recovery plan.

Commenting on DWP’s Consultation ‘Taking action on climate risk: improving governance and reporting by occupational pension schemes’, Simon Jones, Head of Responsible Investment, Hymans Robertson says:

“We welcome the considerable efforts the DWP has made to create legislation and guidance that recognises the important role UK pension schemes need to play in combatting climate risk, and in supporting the UK Government in its ambitious, legally binding climate targets. It is evident the DWP has considered a diverse range of stakeholder feedback, and we are pleased with the majority of amendments made to the draft regulations which seek to clarify and simplify, and which include a number of our own suggestions.

DC Master Trust default funds have seen the value of investments shoot up over the last 12 months despite the market crash at the start of the pandemic, according to analysis from Hymans Robertson. Its latest Master Trust Default Fund Report shows that retirement outcomes for Master Trust pension scheme savers not only recovered but improved over the year.

“With many of the themes familiar from recent TPR guidance, nothing in today’s Annual Funding Statement should come as a huge surprise to trustees and employers. However, TPR outlines how defined benefit schemes should approach 2021 scheme valuations. As consultation on the new DB funding code continues it’s the best indication of how scheme funding will be regulated in the short term and what will attract scrutiny."