SLIDE 1 Stream sponsored by: Media partner:
RONAN O'CONNOR
DEPUTY DIRECTOR, PRIVATE PENSIONS POLICY
DWP
BUILDING A MORE ROBUST DEFINED BENEFIT SECTOR
LESLEY WILLIAMS
DIRECTOR OF PENSIONS
WHITBREAD GROUP JOE DABROWSKI
HEAD OF GOVERNANCE & INVESTMENT PLSA
SPEAKERS CHAIR
@ThePLSA
SLIDE 2 Stream sponsored by: Media partner:
RONAN O'CONNOR
PENSIONS REFORM UPDATE DEPUTY DIRECTOR, PRIVATE PENSIONS POLICY DWP
SLIDE 3 Source: Office for National Statistics, Annual Survey of Hours and Earnings
PROPORTION OF EMPLOYEES WITH WORKPLACE PENSIONS: BY TYPE OF PENSION, 1997 TO 2016
SLIDE 4
DB SCHEME FUNDING LEVEL PROJECTIONS ON A BUY-OUT BASIS, ‘BASE CASE’ SCENARIO
SLIDE 5
DB SCHEME FUNDING LEVEL PROJECTIONS ON A BUY-OUT BASIS, ‘LOW GILT YIELD’ SCENARIO
SLIDE 6
CUMULATIVE DEFICITS OF SCHEMES ENTERING THE PPF
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Clear objectives agreed by trustee and sponsor Buy Out Consolidate Self Sufficiency Sponsor Support Clear trustee and sponsor accountability Assessing success of strategies Better targeted interventions
IMPROVING GOVERNANCE
SLIDE 8
Does the statutory funding objective need to be clearer? Being clear about what good looks like. How do you demonstrate prudence? The right information and the right interventions Do we need a Chair Statement to drive accountability And a Regulator equipped to enforce standards?
UNAMBIGUOUS STANDARDS
SLIDE 9
Have been repeated calls for a more proactive approach from the Regulator July 2017 TPR announced “TPR Futures”, their strategy to be clearer, quicker, tougher What more does the Regulator need in it’s statutory armoury?
CONFIDENT AND PROACTIVE REGULATOR
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Which schemes will benefit most from consolidation? Is a commercial consolidator an occupational pension? What funding standards should it meet? Should sponsoring employers be discharged? Is better than – good enough?
CONSOLIDATION – BIG QUESTIONS
SLIDE 11
Better understanding and communication of risk – Trustees, Employers, Members, and Regulator Fewer, larger, more efficient schemes Confident, pro-active Regulator Better outcomes for members
SUSTAINABLE AND SECURE
SLIDE 12 Stream sponsored by: Media partner:
LESLEY WILLIAMS
BUILDING A MORE ROBUST DEFINED BENEFIT SECTOR DIRECTOR OF PENSIONS WHITBREAD GROUP
SLIDE 13
Great governance Sponsor covenant Investment returns
DB MITIGATIONS
SLIDE 14
Consolidate More regulation Consider benefit levels
DB SOLUTIONS
SLIDE 15 Stream sponsored by: Media partner:
