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Welfare Reform on the Web (May 2008): Pensions - UK

Pension funds sell more equities

N. Cohen

Financial Times, Apr. 1st 2008, p. 19

Research from BNY Mellon Asset Servicing shows that UK pension funds continue to trim their weightings in global equities in an apparent effort to reduce the risk from falling share prices. Figures for 2007 show the overall weighting of equities held by the average pension scheme fell for the eighth year running, from 62.7% in late 2006 to 55.1% by the end of 2007. The weighted average return of UK pension funds in 2007 was 6.4%, a real return of 3.7% above inflation.

Pensions paying out less than 1,000

N. Cohen

Financial Times, Apr. 15th 2008, p. 2

The Pension Trends Survey, published on 14 April by the Office for National Statistics, shows most single pensioners get occupational pension benefits of less than 1,000 a year. It suggests defined benefit schemes benefit a relatively small proportion of well-paid people.

(See also Daily Telegraph, Apr. 15th 2008, p. 4)

Pensions powers planned

N. Cohen

Financial Times, Apr. 28th 2008, p. 2

A DWP consultation paper which proposes new powers for the Pensions Regulator will be limited to blocking the transfer of company schemes to pension fund operators which are not regulated by the FSA.

(See also The Guardian, Apr. 28th 2008, p. 27)

Pensions Regulator gets new powers


Financial Times, Apr. 15th 2008, p. 4

The Pensions Regulator has today been given new powers to protect members' interests when uninsured companies take over a pension scheme. It will be able to require contributions from a company (or its associates) seeking to benefit from a pension scheme after a buyout. The move has been welcome by the CBI.

(See also The Guardian, Apr. 15th 2008, p. 23)

Tax cut will trim pension pot for 7 million

H. Wallop

Daily Telegraph, Apr. 29th 2008, p. 1

Up to seven million savers will see their private pension pots shrink as a result of the government's reduction of the basic rate of income tax from 22 to 20%. A saver investing a typical 200.00 per month in a private pension will now need to pay an extra 48.00 per year to end up with the same pot. Only lower rate taxpayers are affected, leading to accusations that the Treasury has again penalised poor people to fund the cut in income tax.

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