Managing cost

Our range of employer advisory services, modellers and online tools enable employers to ensure costs are controlled whilst corporate objectives are satisfied.
 

 Overview

 
The next step for any employer with a final salary pension scheme deficit is to agree an affordable recovery plan.

We can help:
  • ensure you have up-to-date knowledge on your scheme’s position through our online tools
  • understand the expected developments in, and options for change for future pension arrangements, enabling you to ensure your pension provision is affordable and sustainable
  • negotiate with trustees about de-risking initiatives, benefits changes and pension scheme funding assumptions, in particular managing the approach taken to agreeing the level of prudence
  • plan for the introduction of auto-enrolment from your staging date – for example, by helping you prepare for the potentially higher pension costs, or understanding the impact prior to a merger or acquisition
  • minimise the risk-based levy payable to the Pension Protection Fund (PPF) by taking actions which reduce the assessed pension deficit and assumed probability of insolvency

 

 Insights and views

 
    Pensions Bulletin March 2015
    4 March 2015

    ​There has understandably been a great deal of focus recently on the implications of the new flexibilities that will be available to members of defined contribution (DC) arrangements come Flexiday – 6 April 2015. What perhaps hasn’t received so much attention is how defined benefit (DB) schemes might be faring. Employers have been putting billions of pounds into UK schemes over recent years – has it made a difference?

     

    Click here to view pensions bulletin

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    Briefing Note: Is it RIP for RPI?
    26 February 2015

    ​At the beginning of January 2015, the UK Statistics Authority published an independent review of UK consumer price statistics. Amongst other things, the review recommends that government and regulators work towards ending the use of RPI as soon as practicable.

     

    Read full briefing note here

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    Issue 9: Flexiday - Where are we now?
    12 January 2015

    It is now over nine months since the Chancellor announced his Flexiday proposals to allow members of defined contribution (DC) schemes more flexible access to their benefits. This briefing note reviews where we are now in the process of implementing Flexiday in law – and what we are still waiting for (with three months to go).

    View briefing note here ​

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    Corporate Bulletin: Quarter 4 2014 update
    9 January 2015

    ​Welcome to the 2014 year-end edition of our quarterly bulletin aimed at defined benefit (DB) sponsors. We provide an overview of market conditions and the range of accounting assumptions sponsors may wish to use for their annual disclosures at 31 December 2014 alongside market news regarding pension buy-outs and de-risking, and an update on PPF issues.

    View full Corporate Bulletin here

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    Countdown to Flexiday Briefing Note Issue 8 - DC trusts - implement or facilitate?
    9 December 2014

    Amidst continued media excitement about the new flexibilities, trustees of defined contribution (DC) schemes and sections now need to decide exactly how they will implement the new flexibilities.

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    Autumn Statement Pensions Update
    4 December 2014
    The Chancellor’s Autumn Statement was light on pensions details. This will have come as a welcome relief to most of those involved in pension schemes, who are still reeling from the implications of the Budget announcement and the seemingly endless series of amendments to the two pensions Bills before Parliament.
     
    The only significant new announcement was that beneficiaries of people who die under the age of 75 with a joint life or guaranteed term annuity will be able to receive any future payments from such policies tax-free. This will only apply where no payments have been made to beneficiaries before Flexiday (6 April 2015). The tax rules will also be changed to allow joint life annuities to be paid to any beneficiary. Where the member was over 75 at death, the beneficiary will pay income tax at their marginal rate, or 45% if the funds are taken as a lump sum payment (marginal rate from 2016/17).
     
    These changes will largely align the tax treatment of annuities on death with the treatment already proposed for drawdown and lump sums. This does not appear to apply to scheme pensions from defined benefit schemes, although we await further details of the proposals.
     
    The Government has also confirmed that it will not make changes to the age limit of 75 at which tax relief can be claimed on pension contributions.
     
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    DC Schemes: race for the finishing line
    2 December 2014

    Trustees of defined contribution schemes and sections have never been so busy!   6 April 2015 is fast approaching, when the new legal governance requirements and default fund charge cap come into force. 

     

     



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    Visit the Industry Insights page for news and views on the latest industry developments
 

 Events

 
    Member Communications Event: Will you be ready for Pension Freedoms?
    17 March 2015
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    Member Communications: Will you be ready for 'Flexiday'
    25 March 2015
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    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    15 April 2015
    This course addressed the knowledge and understanding requirements
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    Getting Ready for Your Next Pension Scheme Valuation
    21 May 2015
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    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    15 September 2015
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    PS Annual Pensions Conference 2015
    1 October 2015
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    Getting Ready for Your Next Pension Scheme Valuation
    26 November 2015
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    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    3 December 2015
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    Visit the Events area for all forthcoming Punter Southall seminars, conferences and events
    Speak to us

    Speak direct to our specialists in this area
    Neil Lalley
    Head of Employer Services
    Or call us on
    020 3327 5000