How the Context of DB Pensions is Changing in 2022

• Government wants to reform Solvency II but the Prudential Regulatory Authority and the insurance industry have very different views on what should be done.  More research and consultations will take some time.

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• Since 2011 industry expectation for life expectancy improvements have been excessive.  Actuaries think the impact of Covid is best ignored for now.  They will produce updates sometime in 2023 when 2021 census data is also available.

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• As schemes mature and with the PPF’s cap on pension payments declared illegal, the proportion of a scheme’s savers’ pensions covered by the very well funded PPF is growing steadily as time "drifts" by.

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• The Court ruling re the annuity sale by Prudential to Rothesay showed savers have no continuing control over who provides their pension or the investment policies pursued after a buyout.  Benefits of current ESG initiatives can be lost.

Renewal of a pension scheme – running it on with added sponsor backed security generating funds for all stakeholders is a practical possibility.  It is supported by major fiduciary and asset managers, banks and insurers.

We have developed a proposition FiduciaryPlus in close partnership with leading financial institutions.  It can make running on happen.