Monthly Archives: February 2018

Governance in the spotlight

spotlight on governanceRecent high-profile cases, like BHS and Carillion, have shone an intense spotlight on the governance of UK pension schemes.

Over the last few years, the Pensions Regulator has demonstrated a consistent focus on governance and, in particular, the need for trustees to demonstrate effective risk management processes. At the same time, the regular stream of cases in the news has led to a very public scrutiny of how large pension schemes are managed and the decisions being made by trustee boards. This has been a wake-up call for many trustees, who now realise that merely trying to do the right thing is not enough. It is essential to be able to demonstrate that the decisions they have taken are appropriate and effective, in the context of a robust risk management framework.

At the same time, trustees are faced with increasingly complex decisions. Solutions being put forward by advisers for managing pension liability are becoming more sophisticated and multi-faceted. So how do trustees demonstrate effective decision-making as complexity increases.

Finally, there is an increasing need for trustees to be ale to act quickly to grasp opportunities that may appear (and, equally, disappear) over short timeframes. Demonstrating appropriate decision-making under time pressure can be particularly challenging.

In this Perspective, Leonard Bowman considers why governance is changing, the features of good governance and how schemes are choosing to respond.

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News for week ending 23 February

In this week’s news Frank Field questions Sir Philip Green, guidance is issued for pension schemes on the interaction of Scottish tax with relief at source and university strikes begin.

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News for week ending 16 February

In this week’s news the Government responds to the Select Committee on cold calling and guidance, IAS 19 amendments are issued, a publishing acquisition is announced and a large bulk annuity deal is done.

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News for week ending 9 February

In this week’s news BT is appealing against the recent High Court ruling on RPI/CPI pension increases while pushing ahead with the closure of its DB scheme to future accrual for managers, and WPP completes a buy-in.

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News for week ending 2 February

In this week’s news CDC is on the horizon and two decisions are published on discrimination cases in pensions.

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