United Kingdom

Details

  • Type: Press release
  • Date: 05/12/2012

Autumn Statement 2012: Speed up pension scheme regime, says KPMG 

Consultation on pension scheme funding regime needs to be quick, says KPMG

 

Wednesday 5th December 2012

 

Commenting on today’s statement by the Chancellor of the Exchequer that the Department for Work and Pensions will consult on changes to the pensions scheme funding regime.

 

Mike Smedley, pensions partner at KPMG in the UK, said “We do hope that this consultation can be undertaken quickly.  Companies and trustees are now starting to plan for their 2013 valuations, and any uncertainty over the regime under which they are to be conducted will delay decision-making.

 

“However we wonder if the first part of the consultation will be likely to lead to much change in practice.  The Pensions Regulator already looks at affordability when considering deficit recovery plans.  Without some new hard parameters being set out, it does not appear that such a new high-level objective would do much to change the status quo.

 

“The consultation on allowing for smoothing of asset and liability values will no doubt give rise to a heated debate.  There are strongly-held views across the pensions industry both for and against the present mark-to-market approach.  A simple smoothing approach is not without its problems, as shown by the PPF’s latest calculations for its levy on schemes, where even with a five-year smoothing approach they have seen a large rise in scheme deficits.”

 

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www.kpmg.com/uk/autumnstatement

 
For further information please contact:
KPMG Press office
Tel:  +44 (0) 207 694 8773
Margot Cowhig, KPMG Corporate Communications
Mobile: 07920 274856: Email.address margot.cowhig@kpmg.co.uk


About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

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Autumn Statement 2012