Press Releases

Commenting on the closed consultation “Public Service Pensions: Cost Control Mechanism consultation”, Robert Bilton, Head of LGPS Valuation, said:

“We welcome the Government’s decision to make changes to the mechanism, and the increased stability these will bring to future cost cap valuation results. In particular, the ‘economic check’ will help to reduce the potential for ‘perverse’ results to occur. The check should make it less likely that we will see a recurrence of the situation from the 2016 actuarial valuations, where benefit improvements are proposed at the same time as contribution rate increases."

Commenting on today’s consultation ‘Guaranteed Minimum Pension Fixed Rate Revaluation,’  Matt Davis, Head of GMP Equalisation, says:

“Today’s release of the DWP Public Consultation on “GMP Fixed Rate Revaluation” proposes a ninth different level of fixed rate revaluation. The proposed change anticipates lower medium term wage growth than last time round. For schemes that are part way through GMP equalisation projects, it is important to factor in this potential change due in April 2022. As the industry knows all too well, GMPs can be very complex to administer. However, recent guidance can help schemes use GMP conversion to remove these complexities.”

Over a third of people (39%) are more likely to buy protection insurance as a result of their experience during the pandemic, research from Hymans Robertson has revealed in its 2021 Protection Report. The main reason for this increase was due to people seeing the impact of the pandemic on the health of others the findings show.

The Selecta (UK) Pension Plan (the “Plan”), sponsored by Selecta UK Limited has completed a £250m full scheme buy-in with Legal & General covering liabilities in respect of the Plan’s approximately 1,000 deferred and approximately 1,000 pensioner members.

Hymans Robertson has joined the Net Zero Investment Consultants Initiative (NZICI) which commits to supporting the goal of global net zero greenhouse gas emissions by 2050 or sooner. The leading pensions and financial services consultancy has signed up to the initiative alongside ten other investment consultants and all have collective responsibility for $10trillion of assets. The development of the NZICI has been led by the Investment Consultants Sustainability Working Groups (both within the UK and US) and is endorsed by the United Nations Race to Zero campaign and the Principles for Responsible Investment (PRI).

Half of DB Scheme Trustees (50%) believe the pandemic has increased the need for schemes to invest in engagement strategies about member options and provide access to financial advice for members, according to research from Hymans Robertson. The fallout from Covid-19 has also compounded the need for those approaching retirement to review their plans, according to the leading pensions and financial services consultancy, as it warns that Trustees must take action to implement these changes.

Commenting on the joint discussion paper by The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) ‘Driving Value for Money in DC Pensions’, Laura Andrikopoulos, Head of DC Governance, Partner says:

“We welcome the joint TPR/FCA discussion paper on assessing value for money in DC schemes. A common framework is essential to support members’ in understanding to what extent their current arrangement provides value regardless of its overarching trust or contract based structure. Currently there are a number of definitions of ‘value for members’ and ‘value for money’ in play which hinders proper comparison and transparency. We look forward to seeing a joined-up approach to value assessment in DC pensions that puts member outcomes at the heart of its considerations of what really constitutes good value, as opposed to a narrower focus on charges that fails to capture the complete picture.”

Commenting on the DWP Consultation ‘Strengthening The Pensions Regulator's Powers: Notifiable Events (Amendments) Regulations 2021’, Laura McLaren, Partner says:

“The latest consultation from the Government starts to fill in the much anticipated detail on proposed changes to the notifiable events regime. Extending both the list of notifiable events, and the duties on employers to provide information to the Regulator about proposed corporate transactions, the draft Regulations are doing pretty much what was promised ahead of the 2021 Act."

Commenting on the scrapping of triple lock for 2022/23, Chris Noon, Partner, says:

“The triple-lock used to increase State pension is an important long-term protection for pensioners. Too many pensioners are still living on incomes that are below the pensioner poverty threshold despite years of the triple-lock being in place. The unusual circumstances of furlough means that the triple lock formula is not fit-for-purpose for the April 2022 State pension increase. This is short-term technical issue and we are pleased that the Government has not been persuaded to abandon the triple lock completely but has simply accommodated a one-year anomaly. The UK already has one of the worst State pensions across the OECD. Throwing out the triple-lock would have risked pushing more pensioners in to poverty.”

The Hymans Robertson Foundation’s fifth birthday this year will be marked with it offering an additional series of grants totalling £45,000. Five awards of £5,000 will be given to the Foundation’s smaller charity partners – FARE Scotland, SportInspired, TLG – Transforming Lives for Good, Works + and MyBnk. Each charity will be able to allocate this grant to meet their individual charity’s needs. In recognition of the firm’s local charity partnerships, which are managed by teams of volunteers within each Hymans Robertson office, an additional £20,000 has also been allocated to be distributed to local charity partners.

Hymans Robertson has been listed as a signatory to the UK Stewardship Code 2020 by the Financial Reporting Council (FRC). The Stewardship Code ‘Code’ sets high standards for participants in the financial services industry to demonstrate their stewardship practices. This marks the leading actuarial and pension firm’s continued commitment to addressing responsible investment issues across its business and follows the recent launch of a new action group, The Climate Impact initiative, and the firm becoming a member of Pensions for Purpose.

Commenting on the Stronger Nudge to Pensions Guidance Consultation, Michael Ambery, Partner says:

“We fully support any assistance that can help members with decision making as they approach retirement. So this consultation’s aim to understand whether nudging individuals in their decision making will improve these decisions is very welcome. Providing the right and most appropriate advice, in a way that will help individuals make the best decisions for their own circumstances, is critical as they access or transfer their pension. It is imperative that nudges, guidance and signposting continue right up to the point of retirement as support is both timely and critical, and the repercussions of poor decisions can be significant."