Occupational Pensions, Defined Contribution and Defined Benefit Pensions News

THE FINANCIAL SERVICES AUTHORITY (FSA) has decided to proceed with a ban on the payment of commission on all new group personal pension (GPP) products and sales, whether sold with advice or otherwise.

THE PENSIONS REGULATOR has issued a financial support direction1 (FSD) against 25 companies in the Nortel Group in Canada, the US, Europe and Africa. The regulator’s Determinations Pan el found that it would be reasonable to impose such an order on the Nortel companies after the sponsoring employer of the Nortel Networks UK Pension Plan was found to be “insufficiently resourced”. Nortel Networks Corporation, and several subsidiary companies, were placed in various creditor protection and administration procedures around the world in January 2009.

THE TREASURY has launched a consultation1 on the removal of the requirement to purchase an annuity by age 75. As announced in the recent Budget (OP, July 2010), this requirement is to be withdrawn in April 2011. Few will benefit Under the proposals, those with a defined-contribution pension fund will be permitted to keep their money in an income drawdown arrangement indefinitely, rather than having to buy an annuity by the age of 75.

MEMBERS OF the BBC Pension Scheme have been told that the corporation intends to close the defined-benefit (DB) arrangement to new members as of 1
December 2010, and limit future increases to pensionable pay for existing members at 1% per annum, from April 2011.

FIVE YEARS AFTER the relevant statutory provisions came into force, the Pensions Regulator has issued its first contribution notice1. It has been issued to a Belgian company, Michel Van de Wiele NV (VDW). The notice is for just over £5 million and has been made in respect of the Bonas Group Pension Scheme.
Although the regulator has, in the past, reportedly taken a number of cases to the brink, settlement has always been reached before a notice was issued.

THE EUROPEAN COMMISSION has launched a green paper1 in an attempt to ensure what it describes as “adequate, sus tainable and safe pensions throughout the EU”.

A CLAIM LODGED through the US bankruptcy courts by the Pension Protection Fund (PPF), to try and recoup $550 million from the US owner of the failed company Visteon UK, has been withdrawn. The PPF withdrew the claim following the Pensions Regulator’s decision not to use its anti-avoidance powers against the Visteon US entities.

THE PENSIONS REGULATOR has decided to completely rewrite its guidance for trustees of defined-benefit (DB) multiemployer schemes. It is consulting
on a revised version1 which is far more detailed than the existing guidance.