Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2015
05

Half of pension schemes attract board-level scrutiny due to costs

Open-access content Wednesday 6th May 2015 — updated 5.13pm, Wednesday 29th April 2020

Half of corporate boards have examined the cost of running their pension schemes in the last year, according to a study.

Consultants Capita Employee Benefits said this was because of the "harsh economic environment" and employers looking to improve efficiency and "run leaner operations". 

A survey of 72 pension managers and trustees found a further 11.1% believed that board-level scrutiny of scheme costs was imminent.

As part of a report to examine attitudes and practices of those responsible for trust-based pension scheme administration, the survey said 53.5% of respondents believed their scheme was "priced about right". But "what is considered a good price for pension managers and trustees may not be seen that way for the sponsor's board", said the report.

Stuart Heatley, sales and client development director at Capita Employee Benefits, said: "Cost will always be an important factor in running a scheme and pension managers and trustees need to be mindful of this when deciding how their scheme is administered."

The report said pension managers and trustees were also aware of other challenges such as pensions scams. In the last 12 months, 58.3% of participants had come across at least one scam, but 36.7% had not seen any and 3.3% respondents said they did not know how many cases there had been.

The firm said pension freedoms would introduce a number of changes to schemes. While more than half (52.8%) of respondents did not know or had not decided what changes would be introduced to their schemes, 40.3% said their schemes would allow for full crystallisation for a lump sum. 

Another 31.9% said they would allow for full crystallisation for an annuity. Some 12.5% of schemes would allow for partial crystallisation for a sequence of lump sums and 12.5% would introduce a combination of drawdown and lump sums.

This article appeared in our May 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Nortel's UK pensioners win payout following unprecedented joint US and Canadian court case

Pensioners of Nortel’s UK arm have won a share of $7.3bn (£4.6bn) assets following a US and Canadian ruling, says PwC.
Thursday 14th May 2015
Open-access content

Pensions minister urged to increase private pension age to 60 in 2024

Ros Altmann, the new pensions minister, has been urged to increase the private pension age to 60 in 2024, according to the Centre for Policy Studies (CPS).
Friday 15th May 2015
Open-access content

Pension freedoms leave 'millions of pounds more accessible to scammers'

A third of people aged 55 or over have been contacted by someone looking to sell them a “potentially dodgy pension product”, according to Which?.
Monday 18th May 2015
Open-access content

New government should 'rebuild pensions consensus'

The new government has been urged to “rebuild and maintain the consensus” round the UK’s long-term pensions strategy.
Wednesday 20th May 2015
Open-access content

DB schemes remain in a 'very challenging environment'

Defined benefit (DB) pension schemes with 2015 valuations may be facing challenging financial conditions, warns the Pensions Regulator (TPR).
Friday 22nd May 2015
Open-access content
2

Lufthansa's pension liabilities up by 41% as FTSE 100 firms' deficits hit £80bn

German airline Lufthansa’s defined benefit pension scheme has seen an increase in liabilities of 41%, according to its latest quarterly report.
Thursday 7th May 2015
Open-access content
Filed in
05
Topics
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ