Pension News from Around the Web

PPF 7800 deficit almost doubles in a year

The total funding level of the Pension Protection Fund (PPF) 7800 index has worsened for the fourth month in a row, after further gilt yield falls.
The lifeboat fund’s analysis showed how the funding ratio for the 5,945 schemes dropped to 76.1% by the end of August from 79.2% in July and from 84.3% in August 2015. The total deficit rose from £376.8bn…...

more

FTSE-100-firms-spent-five-times-dividends-pension-payments

Britain’s biggest companies paid out five times more to their shareholders than they spent plugging the gaps in their pension funds, according to a report.

In what is set to fuel anger over pension scheme funding following the BHS collapse, research revealed FTSE 100 firms with defined benefit schemes – offering a guaranteed income in retirement – paid out £71.8...

more

Short-term pension boost to follow reforms

The majority of new pensioners will gain from the “flat-rate” state pension in the early years after it is launched in April, government figures suggest.

However, people retiring in decades to come are more likely to lose out financially from the reformed system.

The new UK state pension, aimed at simplifying the system, will see a bigger payment of £155 a week made...

more

Pension information given to millions ‘is wrong’

Millions of people may be planning their retirement based on wrong information thanks to government “bungling” MPs have warned.

The Commons Work and Pensions Committee said details sent out about when people will get state pensions and how much they are worth were “inadequate” and “confusing”.

It warns this particularly applies to women, whose...

more

UK pensions two decades behind on liabilities

UK pension funds face a two-decade wait before they have enough cash to meet their liabilities and the assets needed to pay the pension requirements of their members.

The funding level of so-called defined benefit pension schemes, where the employer promises to pay a pension typically based on a proportion of final salary, is worse now than in 2006, according to Redington, the pension...

more

Firefighters to receive pension payouts after government concedes case

Some firefighters are in line for payouts running into thousands of pounds after the government effectively conceded they had been short-changed on their pensions.

The “significant legal victory” announced by the Fire Brigades Union (FBU) relates to a controversial policy that meant many of its members had to pay in for up to 32 years in order to receive a 30-year pension.

...

more

UK state pension ‘one of the world’s lowest’, says OECD

Pensioners in the UK receive much less state pension than they would in many other countries around the world, according to the latest figures from the Organisation for Economic Cooperation and Development (OECD).

At present the full basic state pension equates to just 16% of the nation’s average earnings. That is really low when compared to other countries – the OECD believes...

more

State pension: public sector workers may get inflation-linked benefits after all

The Government could ride to the rescue of millions of civil servants who stand to lose inflation-linked pension increases under the new state pension rules applying from April. Private sector pensioners in the same quandary are unlikely to be helped.

Under the new pension regime, around seven million people employed across both the public and private sector will see some reduction in...

more

UK state pension amongst least generous, says OECD

The UK’s state pension is one of the least generous in the world, according to a report from an international think tank.

The Organisation for Economic Co-operation and Development (OECD) said that only two OECD countries pay poorer pensions.

Those countries are Mexico and Chile.

Meanwhile countries like Turkey, Russia and Greece pay significantly bigger retirement...

more