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Pensions Risk and Strategy

Pensions Risk and Strategy

  • Author:
  • Publisher: Sweet & Maxwell U.K.
  • ISBN: 9781898830757
  • Published In: August 2005
  • Format: Paperback
  • Jurisdiction: U.K. ? Disclaimer:
    Countri(es) stated herein are used as reference only
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"Pensions Risk and Strategy" is published at a time when occupational pensions are undergoing radical reform. There are entirely new questions facing employers, trustees and administrators.

This book addresses the current major issues, including:

  • the ending of final salary (defined benefit) schemes in favour of defined contribution schemes;
  • the balance between debt and equity investment strategies;
  • the impact of new accounting and disclosure rules under FRS17 and developments following the Myners Report.

Significantly, this is the first book available to bring together:

  • risk factors for employers sponsoring defined benefit (DB) plans;
  • HR and legal risks associated with defined contribution (DC) plans;
  • Bar chart illustrations of DC pensions from budgeted contributions;
  • UK pension costs on acquisitions and disposals;
  • Funding requirements of the EU Directive, effective September 2005;
  • Key areas of the UK Pensions Act 2004;
  • Pensions Commission's report of October 2004;
  • New obligations of Trustees from April 2005;
  • Tax changes applicable from April 2006.

Finance directors and other senior management, in-house counsel and trustees, pension lawyers, consultants and risk managers will all benefit from reading this valuable book.

            STRATEGIC AIMS

  • Legacy - defined benefit (DB) or defined contribution (DC) - key risks
  • Closing DB to new entrants - effect on short-term cost
  • Terminating DB accrual - HR and legal risks
  • Managing risk - investment policy
  • Trustees - extent of company control
  • Defined contribution (DC) plans - how do they work?
  • Options for the future - the reward package
    KEY BACKGROUND
  • PLC Accounts - UK and international standards
  • Employers' liability on plan termination - June 2003 increase
  • Acquisitions and disposals - risk assessment - TUPE
  • Pensions Act 2004 - costly 'member protection'
  • Radical tax changes - April 2006
  • Minimum Funding Requirement (MFR)
  • EU funding requirements - effective September 2005
  • EU consultation requirements - significant employment changes
  • Trustee governance - business risk, legislation, Myners Report
  • Occupational pension schemes, personal schemes, stakeholder, state schemes
  • Demographics - Pensions Commission reviews way forward

Jonathan Seres, Sacker & Partners LLP

Feargus Mitchell, Deloitte & Touche LLP

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