I remember with some fondness Denis Norden and his clipboard each Christmas taking us through another collection of bloopers and mishaps. The strange thing was that the title was a bit misleading as it quite clearly never was alright on the night.
Early in 2010 I made some predictions about the likely outcome of the SFHA pension schemes actuarial valuation and unfortunately when the results were made public these proved to be all too accurate . As I mentioned in the later blog you really didn’t have to be Derren Brown or own a fully functioning crystal ball to arrive at the results. Read more »
A wave of optimism broke out as I read a recent interview with Sarah Smart, the Chair of the Pensions Trust (“the Trust”) in which she quite sensibly highlighted the risks faced by charities from their final salary pension schemes.
However the optimism was short lived, as whilst finding it difficult to disagree with the sentiments expressed they struck me as being at odds with another recent article where Mrs Smart appeared to continue to promote the use of Defined Benefit schemes with the statement “Despite numerous and well-publicised assassination attempts on DB Schemes over the past few years, I remain hopeful that they may yet prove to be Rasputin-like in their resilience and stubbornly refuse to lay down and die.” In the same article she had confirmed that she had effectively turned a DC Governance seminar into a sales pitch for DB. Am I the only one who sees some inconsistency here? Read more »
Pension liabilities have been cited as one of the main barriers to pursuing a merger, and it is understandable given the complexities of the legislation, HR issues and potential threat of triggering a significant financial burden.
It is no wonder then that the last two years has seen few mergers completed and a significant number being abandoned before conclusion.
Mergers are inevitable in the current market environment as a way of improving competitiveness, scale and efficiencies, but to navigate the pension minefield professional advice sought at an early stage of the negotiations is vital.
This advice would allow a full investigation of the implications of any change to ensure short term objectives are not being met at the expense of the long term security of the organisation.
Read the full article by David Davison at Civil Society.
The recent announcement about the improved funding position of the Social Housing Pension Scheme (SHPS), while good news on the face of it does warrant some further investigation and should encourage some questions to be asked by participants.
Read more »
David Davison explains to Civil Society readers how charities are still sticking their heads in the sand about future pension provision, despite the increase in comment on the issue.
Highlighted as far back as 2004 and one of the biggest issues charities will face, the elephant in the room can no longer be ignored.
The need for disclosure of a charities pension assets and liabilities under accounting standard FRS17 will depend upon a number of factors and the implications are varied.
David Davison explains that whether disclosure is required or not the need for charities to be aware of and begin to manage the financial situation of their pension fund is crystal clear.
David Davison for Civil Society warns that charities should ensure their pension plan “does exactly what is says on the tin“.
Here he talks about the optimistically named “Growth Plan” from the Pensions Trust, that may carry hidden and costly dangers.
The Charity Finance Directors Group (CFDG) have announced plans to research the true scale of the charity sector’s final salary pension problem.
David Davison for Civil Society, explains why the focus should not be on the size of the number, but on how to address the issues, engage all stakeholders and formulate a ‘blueprint for change’.
David Davison provides insight to Third Sector magazine on the implications of final salary benefits to participants in the Scottish Voluntary Sector Pension Scheme (SVSPS), and the implications of the ‘last man standing’ basis of the scheme and the impact it might have on those charities participating.
A link to David Davison’s article in Civil Society magazine which looks at the risks pension schemes pose to trustees of unincorporated charities highlighted by the case of the 72 year old charity volunteer facing ruin as a result of being pursued for nearly £20,000 by the Trustee of the pension scheme he was associated with as Chairman of a branch of the charity.