Working with your trustees
Punter Southall helps employers work effectively with their scheme trustees using open communication and efficient ways of sharing information.

​This could be in situations such as:

  • reviewing or closing company pension schemes
  • controlling the cost of member options
  • controlling operational risk
 

 Overview

 
​We can help you:
  • understand your scheme’s investment strategy and the options available to your trustees - for example, reducing pension scheme funding volatility through investing in alternative assets or using investment products to safeguard against large drops in equity markets
  • prepare for negotiation with scheme trustees on the future funding of the current pension arrangements
  • effectively present the strength of your employer covenant to your scheme trustees, and negotiate with them on covenant-related issues
  • ensure your pension scheme works for your high earning individuals, with the latest developments in the annual and lifetime allowances handled correctly
  • present a business case to trustees and employees when scheme changes are required, which engages them in the process
  • consult with your scheme trustees when considering a liability reduction exercise to help de-risk your pension scheme

 

 Insights and views

 
    Corporate Bulletin: Quarter 1 2013
    8 April 2013
    In brief:
    • Lower net discount rates at the quarter end mean that pension scheme liabilities could increase by up to 15% compared with the previous year.
    • However, many companies may see net deficits reported on the balance sheet remain broadly unchanged due to good investment performance over the period.
    • The Financial Reporting Council have published FRS102 which will replace FRS17 for accounting periods beginning on or after 1 January 2015.
    Download a copy
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    Valuations in a cold climate revisited
    5 March 2013
    Following an announcement made by the Chancellor of the Exchequer in his autumn statement last year, the Department for Work and Pensions (DWP) has published a ‘call for evidence’ entitled ‘Pensions and Growth’ on whether to allow smoothing of assets and liabilities in scheme funding valuations and whether to require the Pensions Regulator (TPR) to have a new statutory objective to consider the long-term affordability of deficit recovery plans to sponsoring employers.

    View the briefing note


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    Call for evidence on new statutory objective for the Pensions Regulator
    21 February 2013

    Punter Southall’s response to the call for evidence on whether to introduce a new statutory objective for the Pensions Regulator.

     

    View our response

     

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    What if... smoothing is allowed?
    21 February 2013

    What is the current position?

    Actuarial valuations are undertaken based on market prices and yields on the date of the valuation. Assets are taken at market value and liabilities are priced using discount rates set with reference to gilts or other similar markets on the valuation date. Gilt yields have fallen significantly over recent years due in part to quantitative easing and this has led to widening deficits.

    View the hot topic

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    PPF Levies - Jan 2013
    14 January 2013

    ​On 17 December 2012, the Board of the PPF issued the final determination confirming how the levy will be calculated for the 2013/14 levy year. This confirmed that the proposals in the September 2012 consultation will be implemented, together with some additional tweaks.

    View the briefing note

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    Corporate Bulletin: Quarter 4 2012
    9 January 2013

    In Brief:  

    • Lower net discount rates at the year end mean that pension scheme liabilities could increase by up to 8% compared with the previous year end.
    • Schemes invested in equities and corporate bonds may expect to see accounting deficits broadly unchanged compared to the previous year whereas schemes invested in gilts and index-linked gilts may expect to see increased deficits at the year end.
    • The ONS is due to announce its proposals for possible changes to RPI on 10 January 2013. Until the proposals have been digested, there will remain uncertainty over setting the RPI and CPI inflation assumptions.
    Download a copy

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    Reinvigorating Workplace Pensions
    10 December 2012
    On 22 November 2012, the Department for Work and Pensions (DWP) published its long-awaited strategy paper ‘Reinvigorating workplace pensions’ which sets out some possible ideas for so-called ‘defined ambition’ (DA) schemes. It is not a formal consultation; however, the DWP intends to have discussions with industry and consumer bodies to develop possible DA designs. In the short term, the DWP aims to publish, possibly jointly with industry, a framework for DA pensions, although no specific time frame is given.
     
    View the briefing note


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    Pensions Regulator analyses defined benefit funding regime
    13 November 2012
    On 10 October 2012, the Pensions Regulator published further evidence and analysis on the defined benefit funding regime and the funding flexibilities that have been used by pension schemes and sponsoring employers. It highlights that practices vary and that, in facing challenging conditions, schemes are making increasing use of the flexibilities available within the funding regime. This corroborates the findings of Punter Southall’s 2012 Scheme Funding Survey, ‘Reaching pragmatic funding agreements in challenging times’ which showed that both trustees and employers were exploring avenues that had not previously been considered as part of their negotiations.
     
    View the briefing note

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    Corporate Bulletin: October 2012
    9 October 2012

    In brief

    • Lower net discount rates at the quarter end could increase scheme liabilities by up to 12% compared with the previous year end - with asset returns only just managing to keep pace.

    • The ONS proposals to change the calculation of RPI may create additional uncertainty when setting the RPI and CPI assumptions.

    • The changes to IAS19 from 2013 are set to bring increased pension costs for most companies.
    Download a copy

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    High Earners & Contributors: Survival Guide
    10 September 2012
    Update: September 2012
     
    We are now producing additional survival guides on some of the more technical aspects of the new taxation regime. If you would like to see any of these notes, please contact Sarah Tolson for a copy.

    14: Multiple Normal Pension Ages and the annual allowance
    13: Scheme pays in the year of retirement
    12: How deferred members may be caught by the annual allowance charge
    11: Using pension benefits to pay the annual allowance charge: scheme pays in practice
    10: HMRC provides further detail on fixed protection
    9: HMRC revises its interpretation of the carry-forward rules
     
    Further notes will cover topics such as on the ‘carve-out’ from the annual allowance for deferred members, the valuation of benefits for the purpose of the annual allowance and the new ‘scheme pays’ provisions.
    -------------------------------------------------------------------------------------------------------------
    In the 2009 Budget, the Government announced fundamental changes to the way that pensions will be taxed from 2011 for high earners and introduced immediate measures designed to prevent individuals increasing their pension savings in anticipation of these changes.

    These changes will affect not just high earning individuals but also companies, trustees and pensions managers. At the Punter Southall Group, we can draw on a range of expertise to enable us to provide advice to all of these parties. We can ensure that:
    • companies have the right remuneration strategy in place for their key staff;
    • individuals make the right decisions on their pension based on their circumstances; and
    • trustees can implement the new information and administration requirements effectively.
    We are now launching our “High Earners & Contributors: Survival Guide”. Through a series of straightforward and focused briefing notes, we will help you to develop an understanding of the changes ahead and keep you up to date with developments as they occur.
     
    Note 6: What do the annual allowance changes mean for pension schemes?
     
    Note 5: More detail on the tax changes emerges
     
    Note 4: Annual allowance approach confirmed  
     
    Note 3: HM Treasury consults on alternative approach  
     
    Note 2: Annual allowance: an alternative universe 
     
    Note 1: High earners: five key tax changes – will you be ready?
     

     

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    Recovery plans: the fifth analysis
    27 July 2012
    In June 2012, the Pensions Regulator published its fifth analysis of the recovery plan submissions it has received. As in previous years, the analysis includes comparisons of the assumptions used for technical provisions, details of recovery plans and information on how many of those recovery plans failed the trigger tests.
     
    View the briefing note

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    Corporate Bulletin: July 2012
    17 July 2012

    In Brief:

    • Lower net discount rates at the quarter end could increase scheme liabilities by up to 15% compared with the previous year end.
    • Many schemes are likely to have experienced investment returns lower than 10% over the year to 30 June 2012. Overall, deficits are expected to have widened.
    • Companies may look to increase the assumed gap between RPI and CPI.

       
    ​Download a copy
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    Pension scheme funding in current environment
    3 May 2012
    On 27 April 2012 the Pensions Regulator (“the regulator”) published a statement aimed at trustees and employers who are carrying out valuations over the period September 2011 to September 2012. The aim of the statement is to set out the regulator’s views on acceptable approaches to the valuation process in the current economic environment.

    View the briefing note

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    Valuations in a cold climate
    5 March 2012
    With gilt yields at historic lows, trustees and sponsors with valuation dates around the end of 2011 and start of 2012 can expect liabilities or ‘technical provisions’ calculated on current agreed bases to be higher than ever.
     
    View the briefing note

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

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