Pensions News October 2009

December 23rd, 2009 by JCB
Posted in Pensions News | No Comments »

Well here we are racing towards winter, with summer only a fond memory.  Actually there really is not a lot that was memorable about last summer’s weather!

The Secretariat

Annual Accounts 2009

We finally managed to get the Trustee’s Annual Report & Accounts for 2009 out to members around the middle of August.  If you have not received a copy, but would like one please let either Loretta or me know.

Additional Voluntary Contributions

Loretta has sent out the additional voluntary contributions renewal to those few members still contributing to the A.V.C.s scheme.  The next step is the annual A.V.C.s benefit statement which we are currently awaiting receipt from Equitable Life and Aviva (aka Norwich Union).

Summary Funding Statement

All of you should have received a copy of the annual funding statement sent out in September.  This has resulted in numerous telephone calls to the Secretariat and pilot trustees from worried members.  I realise that it made less than palatable reading but it contained information that we are required to tell you by statute.  One pensioner even told me it looked like an obituary notice, for which I apologise but my colour copier went on the blink halfway through printing them and I could only use the black print setting as I was up against a deadline.

Change of Address

We have had several instances of returned correspondence and would like to remind members that we are not psychic and if you are changing address please write and tell us your new address.

Early Access to Pensions Lump Sum

In Setting pensions free, the LibDem MP, Steve Webb, presents an argument for extending early access to pensions savings.  He would like members to have the option to take the tax free cash sum early, to clear mortgage arrears, put down a deposit on a house or for a large capital purchase.  This more flexible approach could provide a significant boost to the economy and may even increase the total amount saved.

Expat Pensioners and Widows

If an appeal to the European Court for Human Rights succeeds over 500,000 expatriate pensioners and widows could see their state pension double.  At present expats living in countries where the U.K. does not have a reciprocal social security agreements, such as Australia, South Africa, Hong Kong and Canada have had their state pension frozen.

If the appeal to the Grand Chamber is successful, those affected pensioners could see their weekly rate double to £82.05 a week depending on their level of national insurance contribution.  A decision on the appeal should be made by March 2010.

The countries that the U.K. has social security agreements with are: Barbados, Bermuda, Bosnia-Herzegovina, Croatia, Israel, Jamaica, Jersey and Guernsey, Mauritius, Montenegro, Philippines, Serbia, Turkey, USA (whew!) and the former Yugoslav Republic of Macedonia.

News in a Nutshell

Total PPF Levy fixed for 2010/11

The Pension Protection Fund (PPF) has announced that the total levy for 2010/11 will be £700m, increased in line with wages inflation.

Consultation on Future of MPs’ Pensions

The Senior Salaries Review Board has published a consultation paper on MPs’ pension as a first step to reducing costs.

Pension Deficits at all-time High

The FTSE 100 companies with defined benefit (final salary) pension schemes had a combined deficit of £96bn at mid-July 2009.

Chadwick’s Interim Report

Sir John Chadwick has issued an interim report indicating a more flexible approach will be taken to determine the relative losses of Equitable Life’s policyholders.  They will no longer need to demonstrate that they relied on flawed government information.

Ombudsman Overcomes Case Backlog

The Pensions Ombudsman has managed to reduce his backlog of cases in 2008/09 by around 90% according to his report and accounts for 2008/09.

TPAS copes with Maladministration

In 2008/09 The Pensions Advisory Service (TPAS) saw a rise in the number of complaints of about 10%.  The main reason for the increase was a 59% rise in complaints about maladministration.

Regulators New Statement on Economy

The Pensions Regulator (tPR) has issued a third statement setting out its position on the current economic volatility.  TPR indicates that it will view favourably flexible approaches in setting recovery plans to reduce deficits.

A Costly Affair

I had to include this item as it appeals to my sense of humour.

According to an extramarital dating website cheating husbands and wives spend massively more on their love affairs that they do on the pensions.  According to the website cheaters spend on average £3500 a year or £291 a month on maintaining the affair, including hotels, phone calls and flowers which is five times more than the average £59 a month spent on pensions (source: Halifax 2009).

It is amazing the articles you can discover in turgid pensions magazines.

Debbie Marten

debbie@pnpf.co.uk

Retirements

May 2009 to July 2009

D. Barnicoat Falmouth

June

G. H. R. Duff Yarmouth

May

S. D. Wood Liverpool

June

Pensioner Deaths

May 2009 to July 2009

L. E. Fane Ipswich

F. I. Forsaith Shoreham

J. J. Frankish London South

J. Hamilton Clyde

T. D. Hettle London T.H.

R. D. McGlashan Forth

E. T. Milford S. E. Wales

A. J. Moore Harwich

P. A. Roberts Dover

J. S. Robertson Clyde

W. G. Wilcox Liverpool

E. F. Williams S. E. Wales