PPF shows company pensions doubling
10 Feb 11
The 6,560 company pensions in the UK covered by the Pension Protection Fund (PPF) saw surpluses over liabilities more than double during January, showing progress for the country's corporate retirement savings.
According to the PPF, rising gilt yields were able to make up for stock market losses, most specifically due to a fall in obligations triggered by a 26 basis point increase in 15-year gilt yields.
Compensating members of pension schemes if their company fails due to monetary issues, the PPF undoubtedly breathed a sigh of relief at news that eligible schemes had posted a surplus of £46.1 billion, rising from £21.7 billion pounds in December.
One of the main casualties of the recession still remains to be final-salary pension schemes, which have fallen out of favour with employers because of the costs associated with running them due to members living longer and tightening regulations
15 May 13 | Final salary schemes could be finished in 3 years, experts warn
The combined deficit of UK pension funds increased by £20 billion in April to £256.6 billion, and experts have warned that final salary pension schemes could be finished within three years.
25 Apr 13 | Equitable Life Policyholders
The Government is in danger of missing its March 2014 target to pay all traceable policyholders who lost out following the collapse of Equitable Life.
22 Apr 13 | MPs call for single pensions regulator
20 Apr 13 | Upper Tribunal confirms pension fund entitled to tax credits but out of time to bring statutory claim
The Upper Tribunal (tribunal) has upheld the decision of the First-tier Tribunal that an exempt UK resident pension scheme (BTPS) was entitled, in respect of in-date claims, to a payable tax credit for dividends paid by UK companies out of foreign income (FIDs) and for dividends paid by overseas companies. The tribunal determined that BTPS had enforceable Article 56 (free movement of capital) rights. As the UK rules stood, shareholders could be discouraged from investing in non-UK resident companies or UK resident companies with substantial non-UK investments, breaching Article 56.
