Quantum News is a must for trustees, finance directors, HR directors and anyone else involved in running a company pension scheme. Read the latest issue now...
This document summarizes several financial and employment topics relevant for UK businesses and individuals in October 2012. It discusses the beginning of auto-enrollment pension requirements for large employers, a small increase to the national minimum wage, plans for a new government-backed business bank, and upcoming changes to state pensions and child benefits that may prompt individuals to review their retirement plans.
This year’s guide has a particular focus on the United Kingdom, and featured topics include automatic enrolment, pension flexibility and the rise of defined contribution pensions.
The document provides an update on the Quantum News publication. It announces a new fresh look and format for the magazine while maintaining similar content covering defined benefit and contribution pension schemes. It notes that Quantum has expanded significantly over the past 16 years, growing from a small team based in one office to approximately 100 employees across five offices. The article welcomes readers to the new style publication and invites feedback.
This document outlines how an employer can assist their employees in saving for retirement through automatic enrollment in a group pension scheme. It discusses the key duties employers have, such as identifying staging dates, setting up a qualifying pension scheme, making minimum contributions, and assessing and enrolling eligible employees. It then provides details on the services a financial firm can provide to help employers design, implement, manage and promote an appropriate pension scheme for their employees in compliance with new legislation. These services include producing reports to review options and costs, implementing the chosen scheme, providing ongoing administration support, and offering financial advice to employees.
Slides from a presentation given by Will Lovegrove at the CIPP / AAT event (3rd March 2016) on "automatic enrolment for agents". It summarises the tactics and strategies currently employed by successful payroll agents to efficiently administer AE for their clients. Including:
- Service Design
- Service Pricing
- Choosing a pension scheme
- Choosing software
This newsletter from Plummer Parsons provides information about upcoming events like the upcoming UK budget and the transition to real time payroll reporting requirements. It also offers guidance on dividend vs salary payments for business owners and weighs factors to consider for retirement planning to avoid needing to work into one's 70s. The firm is available to help clients with any of these issues or with payroll processing and can provide a report on the budget after it is delivered.
Why pensions might just change your lifeHenry Tapper
This document discusses the challenges Jill faces in managing her multiple pensions and getting answers to her questions. It provides tips to help Jill understand pensions and ensure she gets value from her savings. The document notes that while pensions can be complex, there are simple steps Jill can take to stay on top of her state pension, private pensions, track her various pots, and find help when she needs it. The overall message is that pensions are an important way for Jill and others to save for retirement, but many people find them overwhelming and would benefit from easy-to-use tools and guidance.
The document provides an introduction to new employer duties regarding automatically enrolling certain employees into workplace pension schemes. Key points include:
1) Employers must automatically enroll eligible jobholders who earn above a minimum threshold, are between 22-state pension age, and work in the UK. Eligible employees can opt out of the scheme.
2) Employers will need to provide a qualifying pension scheme that meets minimum contribution requirements and inform employees of enrollment and their right to opt out.
3) Contribution requirements are a minimum 3% from employers for eligible employees, with employees contributing a minimum of 5% to make a total minimum contribution of 8%.
This document summarizes several financial and employment topics relevant for UK businesses and individuals in October 2012. It discusses the beginning of auto-enrollment pension requirements for large employers, a small increase to the national minimum wage, plans for a new government-backed business bank, and upcoming changes to state pensions and child benefits that may prompt individuals to review their retirement plans.
This year’s guide has a particular focus on the United Kingdom, and featured topics include automatic enrolment, pension flexibility and the rise of defined contribution pensions.
The document provides an update on the Quantum News publication. It announces a new fresh look and format for the magazine while maintaining similar content covering defined benefit and contribution pension schemes. It notes that Quantum has expanded significantly over the past 16 years, growing from a small team based in one office to approximately 100 employees across five offices. The article welcomes readers to the new style publication and invites feedback.
This document outlines how an employer can assist their employees in saving for retirement through automatic enrollment in a group pension scheme. It discusses the key duties employers have, such as identifying staging dates, setting up a qualifying pension scheme, making minimum contributions, and assessing and enrolling eligible employees. It then provides details on the services a financial firm can provide to help employers design, implement, manage and promote an appropriate pension scheme for their employees in compliance with new legislation. These services include producing reports to review options and costs, implementing the chosen scheme, providing ongoing administration support, and offering financial advice to employees.
Slides from a presentation given by Will Lovegrove at the CIPP / AAT event (3rd March 2016) on "automatic enrolment for agents". It summarises the tactics and strategies currently employed by successful payroll agents to efficiently administer AE for their clients. Including:
- Service Design
- Service Pricing
- Choosing a pension scheme
- Choosing software
This newsletter from Plummer Parsons provides information about upcoming events like the upcoming UK budget and the transition to real time payroll reporting requirements. It also offers guidance on dividend vs salary payments for business owners and weighs factors to consider for retirement planning to avoid needing to work into one's 70s. The firm is available to help clients with any of these issues or with payroll processing and can provide a report on the budget after it is delivered.
Why pensions might just change your lifeHenry Tapper
This document discusses the challenges Jill faces in managing her multiple pensions and getting answers to her questions. It provides tips to help Jill understand pensions and ensure she gets value from her savings. The document notes that while pensions can be complex, there are simple steps Jill can take to stay on top of her state pension, private pensions, track her various pots, and find help when she needs it. The overall message is that pensions are an important way for Jill and others to save for retirement, but many people find them overwhelming and would benefit from easy-to-use tools and guidance.
The document provides an introduction to new employer duties regarding automatically enrolling certain employees into workplace pension schemes. Key points include:
1) Employers must automatically enroll eligible jobholders who earn above a minimum threshold, are between 22-state pension age, and work in the UK. Eligible employees can opt out of the scheme.
2) Employers will need to provide a qualifying pension scheme that meets minimum contribution requirements and inform employees of enrollment and their right to opt out.
3) Contribution requirements are a minimum 3% from employers for eligible employees, with employees contributing a minimum of 5% to make a total minimum contribution of 8%.
This presentation summarizes key aspects of upcoming pension reforms in the UK. It discusses the goals of increasing retirement savings coverage, particularly for low-paid workers. A major component is auto-enrollment, which will require employers to automatically enroll eligible employees into a qualifying pension scheme. It outlines the contribution structure and phases in contributions over time. It also discusses the National Employment Savings Trust (NEST) program that employers can use and certification processes for existing employer pension schemes. Key dates are provided for when auto-enrollment will take effect based on company size. Potential impacts and strategies for employers are identified.
This 3-sentence summary provides an overview of the key points in the Singaporean government's budget document:
The budget document outlines Singapore's plans to promote quality economic growth through policies like tightening foreign worker rules, raising wages, and developing new industries; to build a more inclusive society with measures like increasing spending on education, strengthening social safety nets; and to provide $1.7 billion in direct assistance to households to help with cost of living expenses.
The document proposes a new pension scheme called the Wage in Retirement Scheme (WinRS) with the following features:
- It would provide a base pension benefit with potential increases targeted at RPI to provide an income for life within a fixed employer budget.
- Members would contribute 6% and the employer would contribute a fixed 17.1%. Pensions would accrue at a rate of 1/60th and include benefits for partners.
- Annual increases for current pensioners would be targeted at RPI but guaranteed to increase at least in line with CPI up to 2.5%. Deferred pensions would not be guaranteed revaluation.
- The scheme aims to manage funding by annually comparing assets to
Agencies in New Zealand are making progress implementing new procurement rules that focus on social and environmental outcomes over just outputs, though suppliers are still catching up. Research found that agencies have advanced the fastest in areas with well-defined existing solutions and by joining collaborative contracts, while more planning upfront helps agencies make bigger strides. The COVID-19 pandemic has created both challenges and opportunities that align with the goals of the new procurement rules.
Workplace Pensions - The impact on people who employ carersChris Gardner
The document discusses the impact of new workplace pension rules on individuals who employ carers. It explains that employers will now be required to automatically enroll eligible employees into a qualifying pension scheme and contribute a minimum amount. This poses challenges for elderly or vulnerable people who directly employ carers, as they will now have legal responsibilities and costs as employers. The document considers two options for how such individuals can meet the new requirements - establishing their own pension scheme or using the low-cost National Employment Savings Trust (NEST) scheme. It also notes that many elderly employers may switch to using care agencies instead, passing on the pension obligations.
The Greater Pittsburgh Nonprofit Partnership hosted its 2011 Semi-Annual Membership Meeting on June 22, 2011. Ron Kramer from Schneider Downs presented on the potential changes to charitable deductions. Members Laura Maines, Bernadette Turner, and Dave Coplan provided a PA budget update, an update on our three committees' work, and an introduction to our 2012 dues changes, respectively. Thanks to all, including our Chair, Colleen Fedor and President, Diana Bucco for leading the meeting.
Working to deliver better member outcomesHenry Tapper
This document provides an overview of AgeWage, an independent financial advisory firm, and Retirement Line, the UK's largest annuity intermediary.
AgeWage aims to provide clear and simple scoring and guidance on retirement options through an algorithm assessing pension funds. It advocates for thought leadership in advising clients and proposes a delegated model for ongoing oversight of appointed independent financial advisors.
Retirement Line arranges annuities through an automated online and telephone service. It specializes in enhanced annuities that provide higher payouts based on health factors. Retirement Line has achieved significant growth and high customer satisfaction ratings. It aims to secure the best retirement outcomes for clients through expert, contented staff.
The document discusses the timeline and requirements for pension reform in the UK starting in 2012. Employers will be required to automatically enroll eligible employees into a qualifying workplace pension scheme if they are not already in one. Contribution levels will be phased in, starting at 2% total with 1% from employers. Employers have the choice to use the National Employment Savings Trust (NEST) scheme or set up their own qualifying workplace pension.
Con Keating's presentation on CDC - August 25th 2021Henry Tapper
This document discusses Collective Defined Contribution (CDC) pension schemes. It explains that CDC schemes offer pensions like defined benefit schemes but are not guaranteed, relying on their own resources. Risk is pooled across members through longevity and investment horizon pooling. Fairness is prioritized through equal cuts if needed. Contributions are allocated like defined benefit to provide mutual insurance. Decumulation flexibility is desirable. Valuations assess viability and earned surpluses to determine if cuts are required based on contractual accrual rates and risk-sharing rules minimize volatility and sequencing risk. Simulations show cuts occur infrequently and are small under 5% of current pensions.
Henry Tapper, Ruston Smith, David Slater and Vincent Franklin discuss the ways we can support staff as they move from a workplace pension into a post retirement world
This document provides information about an upcoming conference on Canadian workplace pensions on September 29-30, 2015 in Toronto. The conference will discuss topics such as pension reform, plan governance, de-risking strategies, and communication with pension plan members. It lists the conference speakers and schedule. Attendees can earn continuing professional development hours for legal societies. The document encourages registering for the conference and offers various pricing options.
The document discusses the pensions shortfall in the UK and how current contribution levels through auto-enrollment will not be enough for many people to achieve the target pension pots of £200,000-£250,000 by retirement. It notes that contributions may need to increase to 12.5% to help address this gap. However, increasing employer contributions could put pressure on businesses and require reviewing other costs. The article advocates for financial education programs to empower employees to make better savings decisions over their careers.
The document discusses opportunities and risks related to upcoming changes in UK pension laws. It outlines several ways high earners could maximize their pension contributions and tax relief before rules change in 2011. It also notes opportunities for employers through initiatives like auto-enrollment and salary exchange to increase employees' pension contributions in a tax-efficient manner. Overall the document aims to help advisers identify strategies clients could use to benefit from pending pension reforms.
Inflation Hedging and the Change in Indexation from RPI to CPI - Survey ResultsRedington
The document summarizes the results of a survey conducted by Redington and Pension Corporation on UK final salary pension schemes. Key findings from the survey include:
- The majority of defined benefit pension schemes are highly vulnerable to future inflation increases as less than 20% have at least 50% of their inflation-linked pensions backed by inflation-linked assets.
- 64% of actuaries and 39% of trustees believe schemes will carry out a buy-out or buy-in within the next three years.
- 91% of trustees said they would consider better asset-liability matching over the next three years.
Novarca Communication of asset management costsHenry Tapper
A presentation delivered to the Transparency task force which helps us to understand not just what we are paying for asset management but what we are getting for our money
ClaimLinx specializes in consulting and benefit administration for self-funded medical plans. Their Simple Option Solution program allows employers to raise deductibles on their health plans and implement a Section 105 medical reimbursement plan to "buy back" benefits for less. This can save employers 10-80% on health costs. The implementation process involves presenting employers with customized savings projections and transitioning their plan administration to ClaimLinx as the third-party administrator. ClaimLinx handles ongoing services like claims processing and reporting to help employers lower costs while maintaining coverage for employees.
Health Reform Policy and Information UpdateTom Daly
The document discusses key provisions of the Affordable Care Act, including the individual mandate, health insurance exchanges, essential health benefits, Medicaid expansion, and the employer mandate. It provides details on eligibility and requirements for the individual mandate, health insurance exchanges, and employer mandate. The document also outlines goals and funding mechanisms for expanding health insurance coverage.
The document summarizes new UK pension rules introduced in April 2011. Key changes include a flat annual contribution limit of £50,000 with unused allowance from 2008-2011 able to be carried forward, replacement of a tax penalty at age 75 with a 55% tax charge, and introduction of flexible drawdown allowing unlimited withdrawals subject to a minimum £20,000 secured income. The new rules aim to simplify the previous government's complex pension measures and may impact how much individuals can save into and take from their pensions.
This document provides an overview of key provisions and timelines related to the Affordable Care Act (ACA) including employer shared responsibility requirements, health insurance exchanges, and cost-sharing limitations. It discusses what constitutes an applicable large employer, the penalties for not offering affordable minimum essential coverage ("Play or Pay"), and examples of how penalties would be calculated. It also summarizes other ACA mandates and reporting requirements employers need to be aware of through 2014-2015.
Is Mass at Rest One and the Same? A Philosophical Comment: on the Quantum I...Vasil Penchev
The way, in which quantum information can unify quantum mechanics (and therefore the standard
model) and general relativity, is investigated. Quantum information is defined as the generalization
of the concept of information as to the choice among infinite sets of alternatives. Relevantly, the
axiom of choice is necessary in general. The unit of quantum information, a qubit is interpreted
as a relevant elementary choice among an infinite set of alternatives generalizing that of a bit.
The invariance to the axiom of choice shared by quantum mechanics is introduced: It constitutes
quantum information as the relation of any state unorderable in principle (e.g. any coherent quantum
state before measurement) and the same state already well-ordered (e.g. the well-ordered statistical
ensemble of the measurement of the quantum system at issue). This allows of equating the classical and
quantum time correspondingly as the well-ordering of any physical quantity or quantities and their
coherent superposition. That equating is interpretable as the isomorphism of Minkowski space and
Hilbert space. Quantum information is the structure interpretable in both ways and thus underlying
their unification. Its deformation is representable correspondingly as gravitation in the deformed
pseudo-Riemannian space of general relativity and the entanglement of two or more quantum
systems. The standard model studies a single quantum system and thus privileges a single reference
frame turning out to be inertial for the generalized symmetry [U(1)]X[SU(2)]X[SU(3)] “gauging” the
standard model. As the standard model refers to a single quantum system, it is necessarily linear
and thus the corresponding privileged reference frame is necessary inertial. The Higgs mechanism
U(1) → [U(1)]X[SU(2)] confirmed enough already experimentally describes exactly the choice of the
initial position of a privileged reference frame as the corresponding breaking of the symmetry. The
standard model defines ‘mass at rest’ linearly and absolutely, but general relativity non-linearly
and relatively. The “Big Bang” hypothesis is additional interpreting that position as that of the
“Big Bang”. It serves also in order to reconcile the linear standard model in the singularity of the
“Big Bang” with the observed nonlinearity of the further expansion of the universe described very
well by general relativity. Quantum information links the standard model and general relativity in
another way by mediation of entanglement. The linearity and absoluteness of the former and the
nonlinearity and relativeness of the latter can be considered as the relation of a whole and the same
whole divided into parts entangled in general.
Quantum computing poses a threat to modern cryptography methods. While current encryption algorithms are considered secure on classical computers, quantum computers could crack these algorithms almost instantly due to their ability to solve certain problems and find patterns in large numbers much faster. This has led to research in quantum cryptography, which harnesses quantum mechanics principles like superposition and entanglement to securely transmit encryption keys in a way that is not vulnerable to being cracked by quantum computers. However, simply increasing the size of encryption keys is not a perfect solution either, as it significantly decreases encryption/decryption speeds. New approaches are needed to develop cryptography that maintains security against both classical and quantum attacks while preserving reasonable performance levels.
This presentation summarizes key aspects of upcoming pension reforms in the UK. It discusses the goals of increasing retirement savings coverage, particularly for low-paid workers. A major component is auto-enrollment, which will require employers to automatically enroll eligible employees into a qualifying pension scheme. It outlines the contribution structure and phases in contributions over time. It also discusses the National Employment Savings Trust (NEST) program that employers can use and certification processes for existing employer pension schemes. Key dates are provided for when auto-enrollment will take effect based on company size. Potential impacts and strategies for employers are identified.
This 3-sentence summary provides an overview of the key points in the Singaporean government's budget document:
The budget document outlines Singapore's plans to promote quality economic growth through policies like tightening foreign worker rules, raising wages, and developing new industries; to build a more inclusive society with measures like increasing spending on education, strengthening social safety nets; and to provide $1.7 billion in direct assistance to households to help with cost of living expenses.
The document proposes a new pension scheme called the Wage in Retirement Scheme (WinRS) with the following features:
- It would provide a base pension benefit with potential increases targeted at RPI to provide an income for life within a fixed employer budget.
- Members would contribute 6% and the employer would contribute a fixed 17.1%. Pensions would accrue at a rate of 1/60th and include benefits for partners.
- Annual increases for current pensioners would be targeted at RPI but guaranteed to increase at least in line with CPI up to 2.5%. Deferred pensions would not be guaranteed revaluation.
- The scheme aims to manage funding by annually comparing assets to
Agencies in New Zealand are making progress implementing new procurement rules that focus on social and environmental outcomes over just outputs, though suppliers are still catching up. Research found that agencies have advanced the fastest in areas with well-defined existing solutions and by joining collaborative contracts, while more planning upfront helps agencies make bigger strides. The COVID-19 pandemic has created both challenges and opportunities that align with the goals of the new procurement rules.
Workplace Pensions - The impact on people who employ carersChris Gardner
The document discusses the impact of new workplace pension rules on individuals who employ carers. It explains that employers will now be required to automatically enroll eligible employees into a qualifying pension scheme and contribute a minimum amount. This poses challenges for elderly or vulnerable people who directly employ carers, as they will now have legal responsibilities and costs as employers. The document considers two options for how such individuals can meet the new requirements - establishing their own pension scheme or using the low-cost National Employment Savings Trust (NEST) scheme. It also notes that many elderly employers may switch to using care agencies instead, passing on the pension obligations.
The Greater Pittsburgh Nonprofit Partnership hosted its 2011 Semi-Annual Membership Meeting on June 22, 2011. Ron Kramer from Schneider Downs presented on the potential changes to charitable deductions. Members Laura Maines, Bernadette Turner, and Dave Coplan provided a PA budget update, an update on our three committees' work, and an introduction to our 2012 dues changes, respectively. Thanks to all, including our Chair, Colleen Fedor and President, Diana Bucco for leading the meeting.
Working to deliver better member outcomesHenry Tapper
This document provides an overview of AgeWage, an independent financial advisory firm, and Retirement Line, the UK's largest annuity intermediary.
AgeWage aims to provide clear and simple scoring and guidance on retirement options through an algorithm assessing pension funds. It advocates for thought leadership in advising clients and proposes a delegated model for ongoing oversight of appointed independent financial advisors.
Retirement Line arranges annuities through an automated online and telephone service. It specializes in enhanced annuities that provide higher payouts based on health factors. Retirement Line has achieved significant growth and high customer satisfaction ratings. It aims to secure the best retirement outcomes for clients through expert, contented staff.
The document discusses the timeline and requirements for pension reform in the UK starting in 2012. Employers will be required to automatically enroll eligible employees into a qualifying workplace pension scheme if they are not already in one. Contribution levels will be phased in, starting at 2% total with 1% from employers. Employers have the choice to use the National Employment Savings Trust (NEST) scheme or set up their own qualifying workplace pension.
Con Keating's presentation on CDC - August 25th 2021Henry Tapper
This document discusses Collective Defined Contribution (CDC) pension schemes. It explains that CDC schemes offer pensions like defined benefit schemes but are not guaranteed, relying on their own resources. Risk is pooled across members through longevity and investment horizon pooling. Fairness is prioritized through equal cuts if needed. Contributions are allocated like defined benefit to provide mutual insurance. Decumulation flexibility is desirable. Valuations assess viability and earned surpluses to determine if cuts are required based on contractual accrual rates and risk-sharing rules minimize volatility and sequencing risk. Simulations show cuts occur infrequently and are small under 5% of current pensions.
Henry Tapper, Ruston Smith, David Slater and Vincent Franklin discuss the ways we can support staff as they move from a workplace pension into a post retirement world
This document provides information about an upcoming conference on Canadian workplace pensions on September 29-30, 2015 in Toronto. The conference will discuss topics such as pension reform, plan governance, de-risking strategies, and communication with pension plan members. It lists the conference speakers and schedule. Attendees can earn continuing professional development hours for legal societies. The document encourages registering for the conference and offers various pricing options.
The document discusses the pensions shortfall in the UK and how current contribution levels through auto-enrollment will not be enough for many people to achieve the target pension pots of £200,000-£250,000 by retirement. It notes that contributions may need to increase to 12.5% to help address this gap. However, increasing employer contributions could put pressure on businesses and require reviewing other costs. The article advocates for financial education programs to empower employees to make better savings decisions over their careers.
The document discusses opportunities and risks related to upcoming changes in UK pension laws. It outlines several ways high earners could maximize their pension contributions and tax relief before rules change in 2011. It also notes opportunities for employers through initiatives like auto-enrollment and salary exchange to increase employees' pension contributions in a tax-efficient manner. Overall the document aims to help advisers identify strategies clients could use to benefit from pending pension reforms.
Inflation Hedging and the Change in Indexation from RPI to CPI - Survey ResultsRedington
The document summarizes the results of a survey conducted by Redington and Pension Corporation on UK final salary pension schemes. Key findings from the survey include:
- The majority of defined benefit pension schemes are highly vulnerable to future inflation increases as less than 20% have at least 50% of their inflation-linked pensions backed by inflation-linked assets.
- 64% of actuaries and 39% of trustees believe schemes will carry out a buy-out or buy-in within the next three years.
- 91% of trustees said they would consider better asset-liability matching over the next three years.
Novarca Communication of asset management costsHenry Tapper
A presentation delivered to the Transparency task force which helps us to understand not just what we are paying for asset management but what we are getting for our money
ClaimLinx specializes in consulting and benefit administration for self-funded medical plans. Their Simple Option Solution program allows employers to raise deductibles on their health plans and implement a Section 105 medical reimbursement plan to "buy back" benefits for less. This can save employers 10-80% on health costs. The implementation process involves presenting employers with customized savings projections and transitioning their plan administration to ClaimLinx as the third-party administrator. ClaimLinx handles ongoing services like claims processing and reporting to help employers lower costs while maintaining coverage for employees.
Health Reform Policy and Information UpdateTom Daly
The document discusses key provisions of the Affordable Care Act, including the individual mandate, health insurance exchanges, essential health benefits, Medicaid expansion, and the employer mandate. It provides details on eligibility and requirements for the individual mandate, health insurance exchanges, and employer mandate. The document also outlines goals and funding mechanisms for expanding health insurance coverage.
The document summarizes new UK pension rules introduced in April 2011. Key changes include a flat annual contribution limit of £50,000 with unused allowance from 2008-2011 able to be carried forward, replacement of a tax penalty at age 75 with a 55% tax charge, and introduction of flexible drawdown allowing unlimited withdrawals subject to a minimum £20,000 secured income. The new rules aim to simplify the previous government's complex pension measures and may impact how much individuals can save into and take from their pensions.
This document provides an overview of key provisions and timelines related to the Affordable Care Act (ACA) including employer shared responsibility requirements, health insurance exchanges, and cost-sharing limitations. It discusses what constitutes an applicable large employer, the penalties for not offering affordable minimum essential coverage ("Play or Pay"), and examples of how penalties would be calculated. It also summarizes other ACA mandates and reporting requirements employers need to be aware of through 2014-2015.
Is Mass at Rest One and the Same? A Philosophical Comment: on the Quantum I...Vasil Penchev
The way, in which quantum information can unify quantum mechanics (and therefore the standard
model) and general relativity, is investigated. Quantum information is defined as the generalization
of the concept of information as to the choice among infinite sets of alternatives. Relevantly, the
axiom of choice is necessary in general. The unit of quantum information, a qubit is interpreted
as a relevant elementary choice among an infinite set of alternatives generalizing that of a bit.
The invariance to the axiom of choice shared by quantum mechanics is introduced: It constitutes
quantum information as the relation of any state unorderable in principle (e.g. any coherent quantum
state before measurement) and the same state already well-ordered (e.g. the well-ordered statistical
ensemble of the measurement of the quantum system at issue). This allows of equating the classical and
quantum time correspondingly as the well-ordering of any physical quantity or quantities and their
coherent superposition. That equating is interpretable as the isomorphism of Minkowski space and
Hilbert space. Quantum information is the structure interpretable in both ways and thus underlying
their unification. Its deformation is representable correspondingly as gravitation in the deformed
pseudo-Riemannian space of general relativity and the entanglement of two or more quantum
systems. The standard model studies a single quantum system and thus privileges a single reference
frame turning out to be inertial for the generalized symmetry [U(1)]X[SU(2)]X[SU(3)] “gauging” the
standard model. As the standard model refers to a single quantum system, it is necessarily linear
and thus the corresponding privileged reference frame is necessary inertial. The Higgs mechanism
U(1) → [U(1)]X[SU(2)] confirmed enough already experimentally describes exactly the choice of the
initial position of a privileged reference frame as the corresponding breaking of the symmetry. The
standard model defines ‘mass at rest’ linearly and absolutely, but general relativity non-linearly
and relatively. The “Big Bang” hypothesis is additional interpreting that position as that of the
“Big Bang”. It serves also in order to reconcile the linear standard model in the singularity of the
“Big Bang” with the observed nonlinearity of the further expansion of the universe described very
well by general relativity. Quantum information links the standard model and general relativity in
another way by mediation of entanglement. The linearity and absoluteness of the former and the
nonlinearity and relativeness of the latter can be considered as the relation of a whole and the same
whole divided into parts entangled in general.
Quantum computing poses a threat to modern cryptography methods. While current encryption algorithms are considered secure on classical computers, quantum computers could crack these algorithms almost instantly due to their ability to solve certain problems and find patterns in large numbers much faster. This has led to research in quantum cryptography, which harnesses quantum mechanics principles like superposition and entanglement to securely transmit encryption keys in a way that is not vulnerable to being cracked by quantum computers. However, simply increasing the size of encryption keys is not a perfect solution either, as it significantly decreases encryption/decryption speeds. New approaches are needed to develop cryptography that maintains security against both classical and quantum attacks while preserving reasonable performance levels.
Networking Training in Ambala ! Batra Computer Centrejatin batra
Batra Computer Centre is An ISO certified 9001:2008 training Centre in Ambala.
We Provide Best networking Training in Ambala. BATRA COMPUTER CENTRE provides best training in C, C++, S.E.O, Web Designing, Web Development and So many other courses are available.
Jonathan Jackson presented on Ember FastBoot, Ember's solution for server-side rendering. FastBoot allows rendering Ember applications on the server so they are crawlable by search engines and perform well on low-powered devices. It handles server-side routing, model fetching, and rendering so apps work like traditional server-rendered sites. Jackson demonstrated how to set up FastBoot and use it with Ember Serve, and where to get help if issues arise.
Problem of the direct quantum-information transformation of chemical substanceVasil Penchev
1. The document discusses the possibility of directly transforming one chemical substance into another through a "Trigger field" as proposed in a science fiction novel.
2. It explores how quantum mechanics, which underlies chemistry, can be interpreted in terms of quantum information and entanglement. Entanglement could theoretically allow the direct alteration of a substance's quantum information and transformation into another substance from a distance.
3. While a standalone "Trigger field" is not currently known to exist, the document argues that entanglement provides a theoretical framework for how a field could directly change a substance's quantum information and transform it into another, as envisioned in the science fiction story.
1) The document discusses the relationship between transforming entangled quantum states via local operations and classical communication (LOCC) and the theory of majorization from linear algebra.
2) Nielsen's theorem states that one entangled state can be transformed into another via LOCC if and only if the vector of eigenvalues of one state is majorized by the vector of eigenvalues of the other state.
3) The proof of Nielsen's theorem relies on five key properties, including that any two-way classical communication in an LOCC protocol can be simulated by a one-way communication protocol.
Tomcat is an open-source implementation of Java servlet and JSP technologies. It has a modular architecture with components like Catalina, Coyote, and Jasper that allow it to function as a web server and servlet container. Tomcat has advantages like being free, cross-platform, and highly reliable/performant, though it can consume high resources and system changes require stopping all applications.
What is quantum information? Information symmetry and mechanical motionVasil Penchev
The concept of quantum information is introduced as both normed superposition of two orthogonal subspaces of the separable complex Hilbert space and invariance of Hamilton and Lagrange representation of any mechanical system. The base is the isomorphism of the standard introduction and the representation of a qubit to a 3D unit ball, in which two points are chosen.
The separable complex Hilbert space is considered as the free variable of quantum information and any point in it (a wave function describing a state of a quantum system) as its value as the bound variable.
A qubit is equivalent to the generalization of ‘bit’ from the set of two equally probable alternatives to an infinite set of alternatives. Then, that Hilbert space is considered as a generalization of Peano arithmetic where any unit is substituted by a qubit and thus the set of natural number is mappable within any qubit as the complex internal structure of the unit or a different state of it. Thus, any mathematical structure being reducible to set theory is representable as a set of wave functions and a subspace of the separable complex Hilbert space, and it can be identified as the category of all categories for any functor represents an operator transforming a set (or subspace) of the separable complex Hilbert space into another. Thus, category theory is isomorphic to the Hilbert-space representation of set theory & Peano arithmetic as above.
Given any value of quantum information, i.e. a point in the separable complex Hilbert space, it always admits two equally acceptable interpretations: the one is physical, the other is mathematical. The former is a wave function as the exhausted description of a certain state of a certain quantum system. The latter chooses a certain mathematical structure among a certain category. Thus there is no way to be distinguished a mathematical structure from a physical state for both are described exhaustedly as a value of quantum information. This statement in turn can be utilized to be defined quantum information by the identity of any mathematical structure to a physical state, and also vice versa. Further, that definition is equivalent to both standard definition as the normed superposition and invariance of Hamilton and Lagrange interpretation of mechanical motion introduced in the beginning of the paper.
Then, the concept of information symmetry can be involved as the symmetry between three elements or two pairs of elements: Lagrange representation and each counterpart of the pair of Hamilton representation. The sense and meaning of information symmetry may be visualized by a single (quantum) bit and its interpretation as both (privileged) reference frame and the symmetries of the Standard model.
The document discusses backup and recovery strategies in SQL Server. It covers planning and implementing backups, different types of backups including full, differential and transaction log backups. It also discusses restoring databases from backups, verifying backups, scheduling backups with jobs and maintenance plans, and restoring databases to recover from failures or migrate data. Key points covered include the transaction log and point-in-time restores, restoring filegroups, and consistency when restoring system databases.
This document provides an introduction to quantum computing, including key concepts like qubits, superposition, entanglement, and quantum gates. It discusses how quantum computing could provide significant speedups over classical computing for problems like optimization, encryption, and protein folding. However, building large-scale quantum computers faces challenges like preventing decoherence, developing operating conditions that maintain quantum states, verifying operations, and performing error correction on quantum bits. The document outlines various quantum computing concepts and applications but acknowledges that further advances are needed to develop practical quantum machines.
There are 7 themes within Prince2 and they run through the project linking common items together. A theme is different to a principle in that the principles are like guidelines for the project whereas a theme runs through the project.
The 7 themes of Prince2 are:
Business Case
Organization
Quality
Plans
Risk
Change
Progress
This document provides an overview of the concept of Kaizen. It discusses that Kaizen is a Japanese word meaning "continuous improvement" with the goal of generating customer satisfaction through small, incremental improvements involving everyone in an organization. The document outlines some of the key beliefs and views of Kaizen, including that there should be no day without some improvement. It also discusses how Kaizen can lead to better quality, faster work cycles, flexibility and low costs/waste. The document compares Kaizen to innovation and highlights some of the differences. Finally, it provides an overview of the steps in a typical Kaizen program and includes a case study on how Toyota has implemented Kaizen.
The document repeatedly states "In Association With:" without providing any other context or information. It is unclear what the document is about or what it is associating with.
This document appears to be a catalog listing various switch part numbers and their applications. It includes switches for air conditioning, brakes, and other systems for many vehicle makes and models. Each entry provides the switch part number, application details like vehicle and years, and in some cases additional identification numbers. There are over 400 entries listed across 11 pages.
Nubiga Brunu is seeking a position in hospitality where he can improve his skills. He has over 5 years of experience in customer service roles including at hotels and coffee shops. Brunu has an education background including diplomas in computer software and business management. He is proficient in English and French and has strong customer service, communication, and teamwork skills.
In September 2014, Barclays Bank was fined £37.7 million by the FCA for failing to properly protect £16.5 billion of client assets. This represented significant weaknesses in Barclays' systems and controls for protecting client assets. The new FCA rules introduced in 2014 through a policy statement aim to enhance the UK's client assets protection regime in order to increase confidence in financial markets and better protect client money and assets. The changes will impact how firms handle client money and assets through their operations, IT systems, and policies. All firms are expected to comply with the new rules being introduced in stages by June 2015.
This edition of Experian’s FutureProof expands on
some of the key presentations from this year’s Credit
Risk Summit, where we explored the customer’s
power to choose.
Life, Pensions, and Investments: What do you want to be famous for? Becoming ...Accenture Insurance
With every area of their marketplace being disrupted, British life & pensions providers have an overriding priority: ensuring an in-depth understanding of each consumer segment. This will allow them to identify where long-term value can be generated in each one, and to develop the capabilities to achieve this goal. This report examines the most important disruptive forces affecting L&P carriers, and the business models that can be adopted to capitalize on this disruption and build value for the long term.
The document discusses several topics related to healthcare in the UK, including:
1) New models of care need strong tax controls to avoid costly mistakes like the collapse of the UnitingCare Partnership due to unplanned VAT costs.
2) Bridging the gap between contract award and implementation is key to realizing procurement savings, and requires collaboration between stakeholders and dedicated resources.
3) Reducing temporary staffing is a challenge that requires tackling behaviors, improving recruitment and retention, governance over procurement, and service improvements to reduce need for extra staffing.
- Coverage of M&T's DIVERSITY event at the Sydney Opera House featuring the Hon. Anna Bligh.
- Hiring trends in the Business Intelligence and Information Management space, commentary by BI specialist, Tom Sweeney. Includes breakdown of most in-demand roles in the space, cotnract vs permanent, industries.
- How labour trends are looking like for all Australian regions, as seen by our Regional Directors.
- A look at ING Direct's innovative Zero Touch Project, it's very own private cloud that leads all Australian banks.
- Laura Hanson, M&T's Account Manager in Queensland updates on her latest IT Healhcare Workshop which featured Patrick Lilwall, CIO of Blue Care and Dean Dimkim from Queensland Health.
- Labour trends in the past quarter, including most in-deamdn contract roles, permanent roles and highest paid permanent roles.
Grant Thornton - Higher Education News 2012 UKGrant Thornton
The document discusses developments affecting UK higher education pensions over the past year. Despite gains from changes to pension increases, market turmoil has increased pension deficits. Lower bond yields have significantly increased liabilities, widening deficits. The UK government plans to reform public sector pensions to reduce costs by moving to career average plans and increasing member contributions. Universities are also under pressure to cut costs through more efficient procurement and restructuring support activities, but reductions must be sustainable to avoid compromising quality. Collaboration between institutions may help but VAT remains a barrier unless a formal cost sharing group is established.
1. Auto-enrolment will be successful in getting more people enrolled in pensions, but simply enrolling them is not enough - people need to understand why saving for retirement is important and how to save adequate amounts.
2. While employers will need to provide minimum information to employees about auto-enrolment, they should consider going beyond this with financial education programs to encourage higher contribution rates.
3. Communicating the importance of retirement savings and options for increasing contributions will be important to prevent people from thinking the low auto-enrolment rates are sufficient and to avoid potential opt-outs. Ongoing education can help maximize the benefits
This document summarizes a presentation by Timsey Deb and Shantina Morgan on changes to the disabled facilities grant (DFG) provision in Birmingham. It outlines that the population is growing and aging, which will increase demand for adaptations. It describes how the DFG service was previously run in-house but struggled with backlogs and inefficiencies. In 2017, the service was rebranded as the Occupational Therapy DFG team and a new design-build contract model was implemented. This streamlined processes, reduced waiting times, and improved oversight of contractors. The future plans include further digitization and a new housing assistance policy to help more citizens live independently.
The document discusses upcoming trends in retirement plans in 2018, including a growing emphasis on retirement income solutions and strategies for spending retirement savings from defined contribution plans. It notes that in-plan retirement income options will likely continue evolving to provide flexibility in distributing assets to participants. A think tank expects retirement income solutions will become a larger part of employer well-being programs and help improve readiness. However, some consultants may hesitate to propose innovative retirement income products due to fiduciary risk concerns. Recent federal guidance and legislation are aimed at supporting lifetime income options and addressing these concerns. The new tax law may also provide additional savings opportunities that plans could leverage through education on Roth accounts.
This is the third annual Census from BWD. It is now established as a definitive reference source for salaries and benefits in UK financial services. The Census records cover the period from 2012, through 2013 and now, 2014. The three sample points span pre and post RDR and so act as a valuable analysis of the impact of this pivotal piece of regulation, whilst also showing how the sector is reshaping itself for the future.
Whilst the Census is essentially designed to focus on its core subject – salaries and benefits – the report includes information and analysis on broader sector issues – emerging qualification benchmarks, the balance of independence versus restricted status and other matters of interest and concern to all industry participants and commentators.
We also include BWD’s expert commentary on key recruitment trends for the various occupational groups covered in the Census.
This is the third annual Census
from BWD. It is now established
as a definitive reference source
for salaries and benefits in UK
financial services. The Census
records cover the period from
2012, through 2013 and now,
2014. The three sample points
span pre and post RDR and so act
as a valuable analysis of the impact
of this pivotal piece of regulation,
whilst also showing how the sector
is reshaping itself for the future.
Whilst the Census is essentially
designed to focus on its core
subject – salaries and benefits -
the report includes information
and analysis on broader sector
issues – emerging qualification
benchmarks, the balance of
independence versus restricted
status and other matters of
interest and concern to all industry
participants and commentators.
We also include BWD’s expert
commentary on key recruitment
trends for the various occupational
groups covered in the Census.
This is the third annual Census from BWD. It is now established as a definitive reference source for salaries and benefits in UK financial services. The Census records cover the period from 2012, through 2013 and now, 2014. The three sample points span pre and post RDR and so act as a valuable analysis of the impact of this pivotal piece of regulation, whilst also showing how the sector is reshaping itself for the future.
Whilst the Census is essentially designed to focus on its core subject – salaries and benefits – the report includes information and analysis on broader sector issues – emerging qualification benchmarks, the balance of independence versus restricted status and other matters of interest and concern to all industry participants and commentators.
We also include BWD’s expert commentary on key recruitment trends for the various occupational groups covered in the Census.
This document is a summary of the 2014-2015 Salary and Benefit Census for the UK Financial Services Industry from BWD Search & Selection. It provides an overview and analysis of salaries, bonuses, and benefits across various occupations in financial services based on data from 760 individuals. Key findings include that in 2014, financial advisers had the highest total earnings of £80,774, reversing from previous years. Employed advisers earned £77,027 on average while self-employed advisers earned £84,521. Overall, salaries and earnings increased year-over-year with optimism about further increases in 2015.
The past - present and future of auto-enrolment Henry Tapper
Auto-enrollment has led to over 7 million employees being enrolled in workplace pensions by March 2017. Compliance among employers has been improving but is still an area of focus, with nearly half of employers missing their staging deadlines in early 2017. Opt-out rates have remained low at under 10%. Looking ahead, ensuring compliance among the estimated 200,000 new employers each year will be a priority in the near future. Longer term, the adequacy of contribution levels and relieving pressure on the state pension are issues that may be examined. Employers are also increasingly focused on effective pension governance to mitigate risks and maximize returns and benefits for employees.
This document is Pure Search's 12th annual salary survey of UK in-house tax professionals. It finds that demand for tax professionals remains as the tax landscape continues to change. Average salaries for heads of tax increased in 2014 across all sectors. The biggest trends affecting tax over the next few years will be increased transparency around tax strategies and total tax contributions of multinational companies. Tax authorities are also increasing their ability to pursue tax revenues through reforms like country-by-country reporting. The UK economy is recovering and forecast to continue growing in 2014/15, leading to a positive outlook for the tax market.
The professional recruitment market as a whole has continued the trend from the back end of last year by growing steadily in terms of absolute job numbers by between 5% and 12% so far this year; a good indicator of market sentiment.
We have also found in Q1 2015 versus the same period last year that firms are committed to hiring when they go to market, not just scoping out the possibilities. As you will see in our market breakdown of the legal sector, firms are now moving quickly to secure talent and are offering competitive packages up front to secure the best people.
HML's October 2014 Commercial Bulletin contains all of the key economic data from the month, including the 6% unemployment rate, the European Union bill and the latest update from the financial sector.
Deloitte UK Restructuring Sector Outlook 2016 - Adult Social Care in Troubled...Thorsten Lederer 托尔斯滕
The Adult Social Care sector in the UK is in difficulty. The sector is experiencing the perfect storm of an ageing UK population which is increasing demand for services at the same time as it tries to respond to five years of real term funding cuts, significant wage inflation and increasing regulation. Worthwhile reading.
Similar to Quantum News Issue 43 - Winter 2017 (20)
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
1. Q U A N T U M
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Specific information for defined
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pension schemes
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contribution (money purchase)
pension schemes
General information about
employee benefits
DB
DC
I
As some of you may know, Quantum first
opened its doors for business in early
January 2000, so will hit our 18th birthday
in 2018. The shared vision of the company
back in 2000 was to create a team that
would deliver top quality advice and
services at a competitive fee, whilst being
fair to clients, staff and other stakeholders.
That early vision remains true today and
the continued success of the business
can be measured by the number of
long-standing clients and staff that have
remained with us over the years.
Over the past 17 years, we have opened
five offices and have gone from a
small number of staff to nearly 100.
We have recently moved offices in Cardiff
to cope with the increase in demand. Our
new premises will allow us to double our
workforce in Cardiff to nearly 120 over the
coming years which we certainly would
like to do so long as our client servicing
capabilities are not compromised.
We certainly hope that the next 17 years
have been as good as the first. It’s been
an incredible journey for us all and we
would like to thank all of you who have
contributed to our success along the way.
We look forward to working with you in
2017 and beyond. ●
Quantum approaches its
coming of age• SORP: one year on
• Pensions Monitor
• Actuary in the corner
• Paying for mum and dad
• Take control of your PPF levy
• GMP - It's not over 'til it's over
• An end to the sting in the pension tale?
• Climate change and investment
• Charity work
• And the nominees are...
• The return of Fiscal Policy?
• Quantum chronicles
ISSUE 43 | WINTER 2017
I
2. ISSUE 43 | WINTER 2017
2
SORP: one year on
suzy.lloyd@quantumadvisory.co.uk
This time last year we were all eagerly
anticipating the launch of the new Pensions
SORP. The revised SORP was applicable
for accounting periods commencing on
or after 1 January 2015, hence most
administrators, auditors and trustees have
now been through the process so we have
the opportunity to step back and reflect on
our experiences.
How did it go?
The general feedback given at the annual
Pensions Research Accountants Group
(PRAG) meeting in November was that
overall it was easier than expected and that
trustees found the new disclosures useful.
Fair Value Hierarchy
Early in 2016, the Financial Reporting
Council (FRC) announced amendments to
FRS102 fair value hierarchy disclosures for
scheme years starting on or after 1 January
2017 and aligned these with International
Financial Reporting Standards (IFRS). This
would have been more beneficial if it had
been agreed prior to the launch of the new
SORP, however once released by the FRC
most schemes adopted the disclosures
early and this made the new disclosure
simpler and most investment managers
were equipped to easily provide the
required information.
Investment risk disclosures
These new disclosures were always
expected to be the more difficult area.
There were always question marks over
who would own this disclosure and with
written disclosures there is always an
element of subjectivity. This did prove to
be the most challenging area. They often
turned into quite lengthy documents
with inconsistencies between the rest
of the report. There were different
approaches to quantifying the different
risk areas. A summary approach began to
emerge, however the presentation of the
quantification varied.
• There were moons
• there were ticks
• and there were asterisks
DB DC
3. ISSUE 43 | WINTER 2017
3
Going forward we expect to see some
standardisation as to which of these
approaches to use. Following the first
year of completion, it is hoped the
owner of these disclosures has now
been established and they have a
template of the required format.
Annuity valuations
The valuation of annuities for the first
time seemed to be received timely
and accurately when actuaries were
involved. Delays were encountered
when the information was being
delivered by insurance providers. It is
hoped now the insurance providers
have gone through the first year of
providing the information, it will be a
smoother and more efficient process in
the future.
Way forward
There is still the overall question of
how much do the new disclosures add
value to the accounts. Additional costs
were incurred in the transition to the
new SORP; these will reduce going
forward but the increased disclosures are
ongoing.
For smaller schemes e.g. less than £10
million net assets, it raises the question
of whether we really need the same
disclosures as in a much larger e.g.
£100million plus scheme; who do the
additional disclosures benefit? The extra
costs and time to prepare can be quite
a burden for a small scheme. Could
we see a SORP adaptation for smaller
schemes in the future e.g. something
equivalent to the Financial Reporting
Standard for Smaller Entities (FRSSE)?
This would reduce costs and time of
preparation. It is something that could
be considered in the future but may
prove difficult to justify that one pension
scheme is more important than another
purely based on size. ●
level of contributions that their employer
pays into their defined contribution pot.
More alarmingly, it seems that 43% are
unable to confirm the level of their own
contributions whilst a third do not know
the name of their pension provider. This
all comes despite the increasing levels of
information made available to them.
Without this knowledge, many making life
changing decisions can expose them to
risk as their decisions may be irreversible.
This may signify a need to change the
communication methods employed,
although from what we have seen, there
may be little scope to do so.
Leaves on the line?
Whilst those in the South are struggling
with their rail journeys, it is not all plain
sailing for those in the pensions industry.
HMRC has admitted that files submitted
via the GMP Scheme Reconciliation
Service in November 2016 would not be
acknowledged until March 2017 at the
earliest, with any response to queries
raised not being addressed until June 2017.
This backlog could lead to many problems
such as reputational damage for the
industry and higher costs for schemes as
administrators struggle with inaccurate
GMP data. The knock-on effect of the delays
means that members may be paid incorrect
benefits or pension increases which will take
further time and money to rectify.
At the time of writing, HMRC has not
provided any indication as to how it intends
to improve the service it provides so this
may run for many months more.
Changes
The funding deficit of the UK’s defined
benefit schemes dropped almost 30%
to £195bn in November, according to
the Pension Protection Fund. Driven by
rising gilt yields, the impact of changes
to actuarial assumptions and the new
Purple Book dataset, there was an £81bn
fall compared to October. There was a
corresponding improvement in the funding
ratio of 88.1% for November as opposed to
84.1% at the end of October.
Total assets fell by 1.2% over November to
£1.4trn whilst total liabilities decreased by
5.7% to £1.6trn, hence the improvement. ●
DB DC
Should the auto enrolment
minimum contributions be raised?
Calls for the minimum contribution levels
to increase to at least 12% have been
made by the Pensions and Lifetime Savings
Association, who despite agreeing that a
noticeable improvement will be made to
retirement benefits, some 13 million or
so are still at risk of saving too little and
would need to make higher contributions
and/or work longer to achieve the Pension
Commission’s target income replacement
rate of 67%. Of these, the so called
Generation X (of which I am one!) were
found to be the most affected as few had
saved during their early careers and those
that did, only contributed at the lowest
rates possible.
Whilst the move can only have a positive
impact upon financial outcomes for
those individuals, some organisations
have urged that more time is needed
otherwise it could discourage support
from employees and employers who
would struggle to find the extra monies
required. They have suggested that the
current contribution structure be allowed
time to bed in before changes are
introduced.
Having said that, there has also been
much success with the new initiative.
Auto enrolment increased pension
savings by £2.5bn a year to April 2015
(and is believed to have increased even
further at the time of writing) as a direct
factor of a large increase in pension
membership. Auto enrolment increased
participation among those eligible so that
by April 2015, 88% of all private sector
employees were members of a workplace
pension scheme (up from around half of
these employees before auto enrolment).
In 2012 there were around 5.4m private
sector employees who were members of
a workplace pension scheme although
by 2015 this had increased to 10.0m (of
whom 4.4 million were as a direct result
of auto enrolment).
Blissfully unaware?
A recent survey of over 3,000 pension
scheme members by the Money Advice
Service has indicated that most pension
scheme members are unaware of the
Pensions Monitor
david.deidun@quantumadvisory.co.uk
4. ISSUE 43 | WINTER 2017
4
Actuary in the corner
kanishk.singh@quantumadvisory.co.uk
Scheme Actuaries and their
Gilty Conscience…
A title that can be attributed to the
merciless humour of those Christmas
cracker one liners fresh in the memory,
and the need for some respite from the
depressing familiar story of low gilt yields
and the persistent rise in pension scheme
deficits. Please accept my apologies!
Background
When Scheme Actuaries sit down to draft
their assumptions papers for scheme
valuations, invariably it is difficult to move
from the approach used to determine
the present value of the defined benefit
obligations by deriving a “market based”
discount rate wedded to a “gilts plus a
margin”.
The margin typically allows for some
asset outperformance over the gilt yield,
the need for prudence and the sponsor’s
strength. However, in the current
climate we see the valuation of Technical
Provisions at unprecedented levels. With
funding levels linked to gilt yields and in an
attempt to reduce the volatility of future
funding levels, trustees can feel pressured
into pouring assets into premium priced
gilts. This isn’t fiddling whilst Rome burns,
it’s actively adding fuel to the fire!
This is an issue that has been persistently
debated and consulted upon in recent
years, but the magnitude of the problem
will inevitably force the industry into action
- The Work and Pensions Select Committee
is now looking into “the balance between
meeting pension obligations and ensuring
the ongoing viability of sponsoring
employers”.
What are the alternatives?
One obvious solution to the problem would
be to simply increase the “risk margin”
(or to allow for gilt price reversion – “they
must fall surely, it’s just too painful if they
don’t”). If the margin is increased by the
recent fall in yields, then overall return
assumptions do not change and the impact
on the Technical Provisions is nil. But,
perversely, this also fuels the argument
that the discount rate is no longer “market
based”, but instead a subjective and
increasingly arbitrary figure.
It can also be argued that this masks the
crucial consideration for sponsors and
trustees – can we afford to pay for our
members’ benefits?
The Work and Pensions
Select Committee is now
looking into “the balance
between meeting pension
obligations and ensuring
the ongoing viability of
sponsoring employers”
The Pensions Regulator insists that there
are flexibilities within existing legislation
to tackle the low gilt yield environment
and one of those is by adopting a discount
rate based on a prudent assessment of the
expected return of the scheme assets i.e.
not using a rate that is simply a function on
gilt yields.
However, for all of the reasons above,
looking beyond the link between liability
valuations and yields and instead
concentrating on cash-flows and member
outcomes seems like a pragmatic approach.
Consequently, we would expect many
future funding conversations to lead to an
interconnected approach as follows:
• Funding – liability values calculated using
an estimate of longer term returns that
suitably reflect the scheme’s investment
strategy, with a view to avoiding
inappropriately volatile funding positions
and possibly unnecessary cash calls on the
sponsors.
Considering payments from the Scheme
as “short” and “long” term rather than the
more traditional “pensioner” and “non-
pensioner” is more appropriate. Some of
the future pension payments for “younger”
pensioners are not expected to be paid for
another 30-40 years. Locking in assets now
to meet an obligation so far into the future
seems excessively prudent.
• Investment – adopting (or at least
considering) a type of Liability Driven
Investment (LDI) strategy that gives due
consideration to the timing of future
scheme cash-flows. This will balance
protecting schemes from the effect of
further falls in gilt yields on near term
liabilities and provide a structure to protect
the position of far term liabilities in future
as gilt yields rise.
Alternatively, we expect investment
managers/insurers to issue products that
DB
5. I
ISSUE 43 | WINTER 2017
5
Paying for mum
and dad
stuart.price@quantumadvisory.co.uk
As we all know, some of the National
Insurance contributions paid by those
of us in work are used to pay the State
Pension to those currently receiving it.
We hope that by the time we reach State
Pension Age, whatever age that may be,
there are enough National Insurance
contributions being paid by our children
to pay for our State Pension, but that is
an article for another day.
But surely, we do not pay for our parents’
private pensions too? Well I think we do.
Let me explain why...
For those of us in our twenties, thirties
and forties, many of our parents are
from the golden generation where
they are very likely to have been, for a
significant period of their working life,
a member of their employer’s defined
benefit scheme. These schemes are now
predominately closed to new entrants
and us ‘youngsters’ now must join a
defined contribution arrangement.
It is fair to say that in most, if not all,
cases what is paid by employers into
defined contribution schemes, and hence
the ultimate benefits provided from these
arrangements, are substandard compared
to those of their defined benefit
counterparts.
It could be argued that the reason
employer contributions to defined
contribution arrangements are low
is that defined benefit schemes have
large deficits, which need to be plugged
with significant contributions from
employers. In an ideal world, if there
were no deficits, employers could pay
more contributions into their defined
contribution arrangements. Therefore,
as you can see, we are subsidising our
parents’ private pensions too!
What can we do to overcome this?
Over the years, defined benefit schemes
have fallen foul of legislation and are
now riddled with extra guarantees that
weren’t originally in place when these
schemes were set up. This is great for
our parents but comes at a cost with us
‘youngsters’ ultimately footing the bill.
The government could look to reduce or
remove some or all of these guarantees
on benefits already built up. This would
help reduce or even eliminate deficits
in defined benefit arrangements and
therefore more employer contributions
could be directed into our defined
contribution schemes.
The end result would be a reduction in
our parents’ benefits, which may not be
palatable to them, but it would mean an
increase in our benefits and in my opinion
would help to create a more level playing
field between generations. ●
provide cash at certain points in the
future to match relatively short term
benefits payments. These will reduce
the scheme’s exposure to short term
market fluctuations and allow other
assets to be allocated to sectors with a
longer investment time horizon.
• Sponsor covenant – increased
scrutiny of the employer covenant,
coupled with a “joined up” sponsor and
trustee conversation about cash-flow
requirements and how the business
may support these, possibly via a
tailored recovery plan.
Matching benefit payments with
income from the sponsor, to the
extent possible, can free up assets to
be invested with a longer term time
horizon. Subject to appropriate checks
and balances, this could allow a more
aggressive investment strategy, and
hence funding strategy, to be applied for
benefits payable over the longer term.
This closer correlation between
investment strategy, funding plan
and employer covenant should sound
familiar to all trustees. Trustees
are now required to consider the
interaction of risks associated with
each of these factors on the overall
financial strength of the scheme…
is it possible that we could have an
integrated solution that optimises the
opportunities that a situation affords a
scheme? It’s difficult for an actuary to
say this, but there might be an upside
and we might be able to take advantage
of it…is it possible a Scheme Actuary’s
“Gilty Conscience” could become a
“Gilty Pleasure”? ●
DB DC
6. ISSUE 43 | WINTER 2017
6
Take control of your PPF levy
simon.hubbard@quantumadvisory.co.uk
The Pension Protection Fund (PPF)
provides a valuable safety net to members
of defined benefit pension schemes,
protecting members’ benefits on employer
insolvency. It is funded by a levy on those
same schemes, and this is a significant cost
for many schemes and sponsors.
The levy is largely based on the funding
position of the scheme and the financial
strength of the sponsoring employer, with
those schemes that the PPF think pose the
highest risk paying the highest levies. The
PPF’s methodology is publicly available,
and this allows us to see where we can
take steps to reduce the levy.
Improving your Experian score
In many cases the assessed strength of
the employer can be improved. The
PPF’s assessment is based on a specially-
designed credit score from Experian, which
is designed to estimate the chance of
employer insolvency during the next year.
Because Experian must provide a score for
every company sponsoring a UK pension
scheme, they follow a simple calculation
approach. Experian will:
1. Place the employer into one of eight
‘scorecards’ depending on the size and
type of the business (e.g. large group with
turnover greater than £50 million p.a.)
2. Extract 5-7 key metrics from the
employer’s most recently filed accounts
and mortgage listings.
3. Calculate a PPF score, where the
scorecard used (from step 1) determines
the weighting applied to each of the
metrics.
This suggests a few steps an employer can
take to potentially improve its PPF Experian
score:
1. Check that Experian has placed the
employer in the correct scorecard. An
example here might be where Experian
has failed to identify that an employer is
a charity. The Experian score would then
penalise the employer for failing to make
a profit, when they should in fact be in the
‘not-for-profit’ scorecard where profit does
not feed into the score.
2. Check that Experian has picked up the
latest filed accounts. Clearly the results
within those accounts are important and
may not be better than the previous year’s,
but Experian will penalise an employer’s
PPF score if they think accounts are
overdue.
3. Check the age of the most recent
mortgage recorded by Experian. The PPF
Experian score treats older mortgages
more favourably than younger mortgages,
so refinancing can sometimes harm your
score if it results in a new mortgage
charge. Experian have a certification
process to allow employers to override the
‘young mortgage’ effect if the mortgage is
immaterial or if it directly replaced an older
mortgage.
Reducing the ‘risk’ the PPF
associate with your scheme
Looking beyond Experian scores, other
options to reduce a scheme’s PPF levy
include:
1. Certifying deficit reduction contributions
that have been paid into the scheme since
the last valuation. This reduces the PPF
deficit and hence the levy payable.
2. Carrying out bespoke investment stress
testing (which overrides the PPF’s standard
stress tests). This has the most potential
to reduce the PPF levy for schemes using
liability driven or complex investment
strategies where the PPF’s standard stress
tests cannot fully reflect the strategy.
3. Putting in place a PPF-compliant
guarantee from a parent company. In this
case the PPF will use the Experian score
of the parent instead of the scheme’s
sponsoring employer, potentially reducing
the PPF levy if the parent is deemed to
be stronger. Such a guarantee places a
legal obligation on the parent and care is
needed around how this interacts with
other creditors.
If you are thinking of taking any of the
steps above, we can estimate the likely
impact on your levy beforehand. Please
get in touch with your usual Quantum
contact if you would like to discuss your
options.
Case study
One of our clients was facing a PPF levy of
over £1 million, and asked us if we could
help. We were able to reduce the levy by
10% through a combination of certifying
deficit contributions (saving about £20,000)
and carrying out a bespoke investment
stress test (saving another £90,000). The
levy reduction achieved through bespoke
stress testing can also be replicated in
future years for further savings. ●
DB
7. ISSUE 43 | WINTER 2017
7
GMP - It's not over 'til it's over
matthew.elguezabal@quantumadvisory.co.uk
At their heart, the responsibilities of
trustees and pension administrators
can be distilled into one simple golden
rule: “Pay the right benefits, to the right
people, at the right time”. However
historically for contracted out occupational
pension schemes, important tranches
of those benefits have been calculated
using methods, earnings and revaluation
requirements beyond their control. So,
whilst the rule may still be golden, it has
been far from simple. We are, of course,
talking about Guaranteed Minimum
Pensions (GMPs).
GMPs
GMPs accrued for service between 1978-
1997 and were designed to provide an
equivalent benefit to the earnings-related
tier of the State Pension that the member
would otherwise have earned had they
not been a member of their employer’s
pension scheme. In 1997 they were
replaced by Protected Rights, but accrued
GMP rights endured, often as a time
consuming administrative headache.
With the advent of a single tier State
Pension, contracting out on a defined
benefit basis ceased with effect from 5
April 2016 (having already ceased for
defined contribution schemes in 2012).
HMRC has engaged with schemes to
encourage them to validate and reconcile
their remaining records before they
withdraw their support on the issue at the
close of 2018.
What’s new?
This confers a responsibility on trustees
to ensure their records correctly reflect
the changing complexities of the last
38 years. However, it also represents
a great opportunity, with HMRC giving
unprecedented access to their records
through both the Scheme Reconciliation
Service (SRS) and the excellent online
GMP checker. This allows administrators
to interrogate the HMRC database
for individuals or groups of members
producing earnings information and GMP
calculations for a variety of dates and
scenarios. It seems that HMRC are seeking
a genuinely collaborative exchange to
ensure the correct information is held.
It is important for trustees to engage with
the opportunity to both ensure that their
records correctly reflect the liabilities they
hold and that they are not being held
responsible for benefits that have rightly
been discharged, through historic refunds,
transfers and trivial commutation exercises
etc. Schemes with deferred and pensioner
members should already be some way
down the road of confirming with HMRC
the liabilities they hold and perhaps more
importantly declaring those which they
believe they do not!
What’s next?
HMRC is next turning its attention to
active members (i.e. those who were still
contributing members of schemes at the
point contracting out ceased in April 2016).
Like the recent exercise for deferred and
pensioner members, schemes who wish to
gain access to HMRC’s records to compare
them with their own need to register to
acquire the relevant data. HMRC launched
this process on 6 December 2016 with a
view to collating their data in respect of
these members over the Christmas period.
The results are expected to be available
between January and March of 2017.
The responsibilities of trustees
and pension administrators
can be distilled into one
simple golden rule: “Pay the
right benefits, to the right
people, at the right time”
What now?
This is far from the end, however and
may only clear the path for the next
development, that of Equalisation.
Equalisation of benefits between men and
women has been a thorny issue in pension
administration circles since the Barber
judgement of 1990. Draft regulations
and guidance were first issued in respect
of its effect on GMPs in 2012 only to be
quickly abandoned due to complexities
and industry concerns as to the burdens it
would place on scheme administration.
Given Britain’s decision in June 2016 to
leave the EU, it was wondered whether, as
an EU directive, the whole thing may be
quietly dropped, but the DWP launched a
consultation running to 15 January 2017
discussing ways that the issue may be
handled. Any decisions of methodology will
not be compulsory nor binding but perhaps
they are hoping that a workable and
equitable solution to the issue may remove
one of the barriers to the obvious final
chapter of the GMP story; conversion.
GMP conversion has been available since
2009 and allows trustees, subject to
certain conditions (including equalisation),
to convert GMPs and the ongoing
administrative complexities they involve
for benefits of actuarial equivalent value.
Tellingly the requirement for equivalence
applies only at the date of conversion and
is not ongoing.
Conclusion
In attempting to finally end its involvement
with GMPs, HMRC has expended more
effort and become more helpfully engaged
in the issue than at any time since 1997.
This has in turn brought a sharper focus
from trustees and administrators on to the
subject and with the work already ongoing
and the potential developments outlined
above maybe still to come, it seems that
reports of GMPs’ imminent demise may be
greatly exaggerated.
As ever, we will keep you posted of any
progress made on the subject as and when
it becomes available. ●
DB
8. ISSUE 43 | WINTER 2017
8
An end to the sting in the
pension tale?
jemma.jurgenson@quantumadvisory.co.uk
“Corruption, embezzlement, fraud,
these are all characteristics which exist
everywhere. It is regrettably the way
human nature functions, whether we
like it or not. What successful economies
do is keep it to a minimum. No one
has ever eliminated any of that stuff.”
Alan Greenspan (former Chairman of the
Federal Reserve of the United States).
But it looks as though the Government
is going to have a try at eliminating it…at
least in terms of pension fraud.
It’s become an all too familiar story these
days to read about members who have lost
their retirement savings after being duped
by scammers following cold calls and
people turning up on their doorstep with
transfer forms to complete.
But while many of us have wised up to the
pension transfer fraud it seems that many
are still being lured into signing away their
retirement savings to investment vehicles
with promises of eye-catching returns,
but which deliver no returns or even eye-
watering losses.
And there is often a dilemma for pension
scheme trustees when it comes to
transferring member benefits – they are
torn between taking a paternalistic view
and wanting to protect their members
from potential fraudsters, and avoiding
a charge of maladministration should a
member or spouse come back years later
and claim that the transfer should not,
in fact, have taken place. So, it can be
tricky for trustees who despite when their
scheme administrators have undertaken a
sufficient due diligence exercise may find
that they have not been discharged from
their duty to provide benefits under the
scheme.
Now in a bid to help both members
and trustees, HMRC and the DWP have
launched a consultation proposing a series
of restrictions on pension transfers to try
to halt the rise in pension fraud particularly
since the launch of pension freedoms in 2015.
The consultation proposes the following
approach:
• Imposing a ban on pensions “cold-calling”
• Placing restrictions on a member’s
statutory right to transfer their pension
benefits
• Making it harder to set up potentially
fraudulent small pension schemes (often a
destination for pension scams).
Ban on cold-calling
It is estimated that there are some 250
million cold calls each year, equivalent
to eight potential fraud attempts every
second. A blanket ban on cold-calling
will send out a clear message both to the
public that no legitimate organisation
will make cold-calls about pensions, and
to the fraudsters, as potential fines of
up to £500,000 could be imposed by the
Information Commissioner’s Office on
any UK organisation breaching this ban.
The government has outlined the sorts of
telephone conversations that will fall foul
of the ban which include: offers of a “free
pensions review”, inducements to release
pension funds early and promotions of
retirement income products, such as
drawdown and annuity purchase.
Restrictions on transfers
It is generally difficult to block a transfer
even where it is suspected that an
individual may be transferring to a
fraudulent scheme, because the individual
generally has a statutory right to transfer.
Indeed the government has said in this
consultation: “The government is regularly
informed by firms and schemes that they
are frustrated and concerned because they
feel current legislation gives them little
scope to refuse a transfer to a scheme
that displays the characteristics of a scam,
despite their legitimate concerns as to the
safety of members' savings.”
To avoid the blocking of legitimate
transfers, the government has said that
clear criteria are now needed on when
a transfer could be blocked in future.
DB
It is estimated that there
are some 250 million cold
calls each year, equivalent
to eight potential fraud
attempts every second.
(Image Source: The Pensions Regulator)
DC
9. ISSUE 43 | WINTER 2017
9
The consultation proposes that a
statutory transfer would only exist
where the receiving scheme:
• is a personal pension operated by a
FCA authorised firm or entity;
• is an occupational pension scheme
and the individual can prove a genuine
employment link with evidence of
regular earnings and confirmation that
the sponsoring employer has agreed to
participate in the receiving scheme;
• is an occupational pension scheme
established as an authorised Master Trust.
Setting up fraudulent schemes
The government also wants to make
it harder to open fraudulent pension
schemes in the first place. There has
been a trend recently towards the
setting up of small tax-registered
schemes that require no registration
with the Pensions Regulator and which
often use a dormant company as the
sponsoring employer. The consultation
proposes that only companies that are
actively trading will be able to establish
a registered pension scheme which the
government hopes will prevent the use
of these dormant or shell companies as
a sponsoring employer for the purpose
of registering a pension scheme.
The consultation closes on 13 February
2017 and so, at the time of writing, we
await the outcome of this. Whether
any of the measures finally introduced
will make an impact remains to be
seen. History tells us that fraudsters can
always find a loop in the system. ●
Climate change and
investment
amanda.burdge@quantumadvisory.co.uk
There has been much press comment
recently, following the HSBC UK Pension
Scheme’s decision to adopt a climate
change focused fund as its default for its
DC members. What will this mean for DC
(and DB) schemes in future?
What is a climate change
focused fund?
There are various versions of these
funds available. What they have in
common is a strong focus on low carbon
investments, or businesses targeting a
reduced carbon footprint. They achieve
this by screening potential investments
against strict criteria to assess each
investment’s impact. Whilst it would
be easy to exclude fossil fuel companies
for example, other investments will be
more nuanced. However, the Montreal
Carbon Pledge commits those investment
managers who have signed up to disclose
the carbon footprint of all their equity
funds. Managers will therefore have
much of the information and will have
already carried out the analysis on
existing and potential investments.
Are these funds the future?
A number of pension schemes’ existing
investments will naturally have a lower
carbon footprint than the FTSE All Share,
or even the MSCI World, particularly
if they tend to favour sectors other
than energy for example. In addition,
many companies have improved their
environmental reporting in recent years
and may have already become carbon
neutral (e.g. Microsoft), or may be
targeting specific reductions in carbon
emissions, reduced water usage in
manufacturing and reduced waste for
example.
For actively managed funds, the manager
will already be assessing the potential
impact of climate change when making
investment decisions. It is for the
Trustees (and their advisers) to determine
if their decisions are sufficiently robust.
Implications for pension schemes
The investment decision made by
the Trustees of the HSBC Scheme has
certainly raised the profile of these
investments and we expect to see some
of the following during 2017:
• greater disclosures in Schemes’
Statements of Investment Principles on
ESG issues, including climate change
• questions for active fund managers on
how they manage the risks associated
with climate change
• perhaps a greater focus on “green”
default investment strategies for DC
schemes
This will be an interesting area to watch
and one we are certainly talking to clients
about (not just DC clients). ●
DB DC
10. ISSUE 43 | WINTER 2017
10
And the nominees are...
ryan.davies@quantumadvisory.co.uk
Group life assurance scheme trustees have full discretion over
how a scheme’s lump sum benefits are distributed. The trustees’
decision can be made much simpler if members complete a
nomination form, identifying the preferred beneficiaries and
distribution basis. Although the trustees have ultimate discretion,
they would use the completed nomination form along with any
information gained from their own investigations to make an
informed decision regarding the payment of benefits.
Without a completed nomination form, not only will the decision
on settling any benefits be made more difficult for the trustees,
but the employee loses a valuable opportunity to express how
they would like the benefits to be distributed. In addition to this,
the increased level of investigations that may be required into the
member’s personal circumstances in the absence of a nomination
form may cause a delay in the settlement of benefits. This delay
could have consequences for the dependants who may have to
cover mortgage payments and other expenses on top of dealing
with the bereavement itself.
It is therefore recommended that scheme trustees provide
members with access to nomination forms, which could be made
I
I
available to the member upon joining the scheme, issued with
annual benefit statements and/or placed on the Company’s
intranet for the member to update if their personal circumstances
were to change.
If you have any concerns regarding your own policy(ies) or would
like a nomination form to be designed for distribution to your
scheme members, then please get in contact and we will be happy
to assist you.●
The Association of Member
Nominated Trustees (AMNT)
david.deidun@quantumadvisory.co.uk
We are pleased to announce our sponsorship of the AMNT.
The AMNT is a not-for-profit organisation supporting member-
nominated trustees, member-nominated directors and employee
representatives of UK based pension schemes in the private and
public sector (funded and unfunded).
The AMNT launched in September 2010 because of feedback and
comments from member nominated trustees who expressed a
desire to be able to liaise with other member nominees, share
experiences and build a community designed specifically to cater
for their unique perspective within the pensions industry. Since
then the association has won universal support, including in the
pensions media and among the pensions’ trade bodies: momentum
continues to build.
With the help of sponsors such as Quantum, the AMNT’s
membership has grown more than 45% over the year and now
stands at 685. Their members represent nearly 500 pension
schemes, with an overall AUM of some £662 billion.
In addition to hosting many pensions related functions throughout
the year they also organise quarterly conferences on hot pension
topics, with the aim of keeping their membership fully up to date
and aware of all things related to this fast-changing industry. Their
meetings allow members to discuss various items of common
interest and enables them to seek input into any concerns they
have in relation to their pension schemes. In addition, the AMNT
successfully established the Red Line Voting initiative to enable
pension schemes to take a more active asset ownership role – to
become more responsible investors. See their websites at http://
amnt.org and http://redlinevoting.org for further information. ●
11. ISSUE 43 | WINTER 2017
11
The return of Fiscal Policy?
matthew.tucker@quantumadvisory.co.uk
DB
Quantum chronicles
New arrivals
Billy Jamieson
Deborah Wilson
Scott Moyle
James Melsa
Sherrilyn Jones
Paula Gibson
Events
Past Events
• London Pensions & Investment Seminar @ Merchant Taylors on 13th July 2016
• ‘Race to the Stones’ challenge in aid of Tŷ Hafan Children’s Hospice on 16th July 2016
• Cardiff Pensions for Breakfast @ The Celtic Manor on 20th July 2016
• Birmingham Pensions & Investment Conference @ Opus on 20th October 2016
Upcoming Events
• Cardiff Trustee Training Part 1 on 9th February 2017
• Wales and South West Pensions for Breakfast @ The Celtic Manor on 28th February 2017
• Cardiff Trustee Training Part 2 on 2nd March 2017
• Wales HR Awards @ SSE Swalec Stadium on 23rd March 2017
• Cardiff Trustee Training Part 3 on 13th April 2017
• Wales and South West Pensions for Breakfast @ The Celtic Manor on 20th June 2017
• Wales and South West Pensions for Breakfast @ The Celtic Manor on 31st October 2017
Since the Financial Crisis of 2008, global
authorities have relied on monetary
policy – specifically lower interest rates
and expanded money supplies – to boost
aggregate demand, sustain economic
growth and prevent the slide into deflation,
with fiscal policy largely constrained in
the face of increasing budget deficits and
stocks of public debt.
However, many commentators have
attributed the UK’s surprise vote to
leave the European Union, and the
equally unexpected victory of Donald
Trump in the United States, to the failure
of monetary policy to boost incomes
amongst the lowest earners and the
consequent persistence of inequality. This
has fermented the idea, perpetuated by
both Donald Trump and Nigel Farage, that
politicians were ‘out of touch’ with working
men and women, and part of a ‘liberal,
metropolitan elite,’ unconcerned and
oblivious to the wants and desires of the
people that voted for them.
Voter dissatisfaction with the consensus
suggests change is indeed coming, with
fiscal policy likely to play an increasingly
important role throughout the developed
World. This should be encouraging for DB
pension schemes.
Policy actions
In the UK, Chancellor Philip Hammond
has abolished the strict deficit targets of
his predecessor, allowing the government
to cut taxes and increase spending.
His promise to develop an industrial
strategy – something which consecutive
Conservative and Labour governments
have lacked for decades – also promises to
boost growth which, when matched with
targeted infrastructure spending, could
also serve to narrow the inequality divide.
Public infrastructure not only increases
economic growth by boosting aggregate
demand, but also supports improvements
to productivity and economic efficiency
due to increased aggregate supply. The
multiplier effect also ensures the benefits
of the initial expense are transmitted
throughout the economy; furthermore,
with borrowing costs low, financing
the increased budget deficit remains
sustainable.
The election of Donald Trump in the States
also promises to herald a new period
of fiscal stimulus, with infrastructure
and defence spending likely to see
significant increases in the coming year.
His commitment to cut taxes also supports
increased economic growth, although
the kind of tax cuts the President and his
Republican colleagues in Congress are
likely to enact are not those necessarily
aimed at the lowest paid.
Impact on investments
Looser fiscal policy is likely to have a
positive effect on equity prices relative to
fixed income securities; defensive sectors
such as Consumer Staples, Utilities and
Healthcare are likely to underperform, with
cyclical sectors performing better.
Increased government spending and
lower taxes boost discretionary income,
which thus boosts consumer spending;
not only does this support inflation but,
more importantly, it also increases inflation
expectations, which is what the monetary
authorities monitor when making their
policy prescriptions. Higher inflation
expectations will compel Central Banks to
raise interest rates, negatively impacting
government bonds and other fixed income
securities, particularly those of long
durations.
While the last few years have been torrid
for DB pension schemes, the promise of
higher inflation and higher interest rates
suggests that, despite all the shocks that
2016 has given rise to, 2017 could finally
herald brighter prospects. ●
For further information on any of our events, please visit
www.quantumadvisory.co.uk/events/
12. Who we are
Established in 2000, Quantum Advisory is an independent financial services consultancy
that provides solution based pensions and employee benefit services to employers, scheme
trustees and members.
We design, maintain and review pension schemes and related employee benefits so that
they operate efficiently and effectively and are valued by employees. This means that you
can get on with doing the things that you do best, therefore saving you time and money.
Products and services
We offer a range of services to companies and pension trustees, all designed to focus on
your specific needs, including:
• Actuarial services
• Administration of defined contribution and defined benefit pension schemes
• Banking, accounting and pensioner payroll
• Company advice
• Employee benefits consultancy
• Governance
• Investment consultancy
• Pension and employee benefit communications
• Risk benefits advice
• Pension scheme wind up
• Secretarial services to trustees
• Trustee training
Getting in contact
We have offices in Amersham, Birmingham, Bristol, Cardiff and London. Give us a call to see
how we can help with your pension and employee benefit challenges.
Stuart Price
Cypress House
Pascal Close, St Mellons
Cardiff CF3 0LW
029 2083 7902
stuart.price@quantumadvisory.co.uk
Stuart Price
Broad Quay House
Prince Street
Bristol BS1 4DJ
0117 905 8766
stuart.price@quantumadvisory.co.uk
Phil Farrell
16 St Martin’s Le Grand
St Paul’s
London EC1A 4EN
020 3008 7197
phil.farrell@quantumadvisory.co.uk
Rhidian Williams
St Mary’s Court, The Broadway
Amersham
Bucks HP7 0UT
01494 582 024
rhidian.williams@quantumadvisory.co.uk
Robert Palmer
One Victoria Square
Birmingham B1 1BD
0121 632 2190
robert.palmer@quantumadvisory.co.uk
www.quantumadvisory.co.uk
Quantum Actuarial LLP, trading as Quantum Advisory,
Registration Number: OC326665 & Quantum Advisory
Limited, Company Number: 06020436, registered
in England and Wales. Quantum Actuarial LLP is
authorised and regulated by the Financial Conduct
Authority. Registered office: Cypress House, Pascal
Close, St Mellons, Cardiff CF3 0LW.
A list of all members is available for inspection at our
registered office. WORKING IN PARTNERSHIP WITH YOU