Our Insights

Pensions Administration is having a ‘Cinderella moment’  

Pension administration has long been seen as the unglamorous, back-office function of the industry. Yet, as I have witnessed throughout my career, its role is absolutely critical, not only to the smooth running of schemes but to deliver confidence in the pensions system and give satisfaction to members and savers.

4 minute read

Climate, capital, and commitment: why pension funds matter

Pension funds and asset owners are among the most influential investors in the UK and globally. With their long-term horizons and fiduciary duties, pension funds are well placed to support the transition to a net zero economy.   As I explained on the Brightwell Pensions Unpacked podcast, a company with whom I work, climate change poses a clear and present threat to pension funds’ ability to meet their long-term financial commitments. If pension funds invest in assets that may become stranded as the world decarbonises, they risk undermining their ability to meet long-term obligations to members.

4 minute read

UK businesses poised to put pension scheme surplus to work

Throughout the discussions on surplus release, one figure has been cited time and again - £160bn. his figure is the amount of surplus which currently exists in defined benefit pension schemes on a low dependency basis. But, following the publication of the Pension Schemes Bill, the DWP’s impact assessment suggested that just 5% or just around £8.4bn of surplus after tax would be released over the next 10 years as a result of new rules.

4 minute read

Navigating the future of DB pensions: The case for outsourcing Scheme Services

For decades, UK sponsors of defined benefit (DB) pension schemes have viewed them as a legacy burden, financially draining and administratively complex. Many have invested hundreds of millions, even billions, into maintaining their schemes. But the narrative is shifting. The Options for DB schemes consultation response should set out further detail around plans to allow well-funded DB schemes to release surplus back to sponsors – a proposal widely welcomed by the sector.

6 minute read

Unlocking DB pension scheme surplus – striking the right balance

For the pensions sector, the coming months look set to be busy. We have the Pension Schemes Bill, the government’s response to the first phase of the pensions review and its response to the Options for DB schemes consultation. The Options for DB schemes consultation response should set out further detail around plans to allow well-funded DB schemes to release surplus back to sponsors – a proposal widely welcomed by the sector.

5 minute read

DB Pension Scheme convergence with buy-out model

The forthcoming Pension Schemes Bill is likely to contain legislation to make it easier for defined benefit pension scheme surplus to be returned to sponsors. The Government believes employers can use these funds “to increase the productivity of their businesses – to boost wages and drive growth or unlock more money for pension scheme members.” The question now is what is the right model for running on a pension scheme with surplus extraction as an option?

13 minute read

Behind the Curtain: Navigating the Maze of Private Asset Fund Activities

With the ongoing growth of private market allocations within UK pension schemes the challenge of managing the ongoing investment, operational, legal, and tax related tasks is becoming more and more pressing. Getting these things right is central to maximising value from allocations to private market funds.

10 minute read

What does the revolving door of Pensions Ministers mean for pensions policy?

By its very nature, pensions policy needs to be long-term and consistent in order to deliver. Unfortunately, governments are quite often much more short-termist in their thinking, driven predominantly by electoral cycles. While there have been some notable successes – automatic enrolment (AE) being the main one - in recent years pensions policy appears to have hit the buffers and the high turnover of Pensions Ministers doesn’t help.

5 minute read

Pensions review – which way for DB?

As the pensions review gets underway, there’s one section of the market that’s out of scope – defined benefit (DB) schemes. The terms of reference for the review which were published over the summer state: “Ongoing policy development with respect to defined benefit workplace pensions schemes will remain separate from the review.” To exclude such a large section of the market from the government’s review in some ways feels counterintuitive.

5 minute read