From IDS Pensions Bulletin 210, November 2007

Company news

• Changes made to DC and DB provisions at DSG
• Shell takes contribution holiday

Regulatory round-up

• DWP consultation on flexible retirement and pension provision

ONS survey shows schemes in decline

In October 2007 the Office of National Statistics (ONS) published the 2006 edition of its Occupational Pension Schemes Annual Report. This survey shows that there is a growing difference between the pension contributions being paid to DB and DC schemes. Also, as more DB schemes in the private sector close to new members, there has been a decline in private sector scheme membership in general, although the number of active members in public sector schemes has increased.

The Regulator reports on recovery plans

The trustees of defined benefit pension schemes with a deficit are generally required by the Pensions Act 2004 to submit a recovery plan to the Pensions Regulator setting out how the deficit is going to be eliminated. In September 2007 the Regulator published its analysis of its first crop of recovery plans.

Comment

Roger Self, regular contributor to the IDS Pensions Service, looks at the Government’s proposal to reduce the cap on the mandatory revaluation rate of deferred final salary benefits from five per cent to 2.5 per cent a year.