UK funds should be allowed to enforce CPI indexation to cut deficits

first_imgSponsors with large UK pension deficits should be allowed to override any indexation provision and only offer increases in line with the consumer prices index (CPI), LCP has urged.Proposing the government end the “legal lottery”, the consultancy estimated FTSE 100 firms would see a £30bn (€35bn) reduction in their liabilities if they were able to switch to CPI, rather than the retail prices index (RPI) for all future indexation.The recommendation came as LCP estimated the largest listed firms had pension deficits of £63bn by early August, following the Bank of England’s re-launch of quantitative easing, a significant increase from the £46bn estimated shortfall in June when assets stood at £582bn.However, while advocating the change, LCP partner Bob Scott said the switch to the traditionally lower level of indexation should only occur subject to certain safeguards. “The safeguards are important as they should not automatically allow a profitable company with a large pension surplus to increase that surplus by reducing benefits,” he said.“They could, however, provide relief to a company with a large deficit where the trustees agreed it was in the members’ interests for benefits to be reduced.”LCP’s call came the same day as latest CPI data was released, which showed inflation running at 0.6% in July, up by 0.5 percentage points compared to June. This compared to a 0.3 percentage point increase in RPI to 1.9%.Charles Cowling, director of JLT Employee Benefits, said the inflation data amounted to a “Brexit double-whammy”, as it added to the pressure facing funds due to increasing deficits due to uncertainty following the vote in June.The suggestion funds be allowed to amend the level of indexation comes months after such a move was proposed to reduce the deficit within the British Steel Pension Scheme (BSPS), which faces entry into the Pension Protection Fund as its sponsor, Tata Steel, seeks to sell its UK assets.At the time the consultation was announced, the Pensions and Lifetime Savings Association (PLSA) warned against “bespoke” regulatory changes, and said it would be “inconceivable” for the government to not offer such a solution to the entire DB sector.The previous government considered a statutory override of trust deeds in 2010, but then-pensions minister Steve Webb ruled out such as step as it could see member trust in schemes “severely damaged”.,WebsitesWe are not responsible for the content of external sitesLink to LCP 2016 Accounting for Pensions reportlast_img read more

Carolina RaceSaver Nationals postponed due to weather; replacement race scheduled

first_imgFAYETTEVILLE, N.C. (May 27) – Due to inclement weather and persistent negative forecasts, the much anticipated Carolina RaceSaver Nationals originally scheduled for this weekend (May 29-30) has been postponed to Oct. 23-24. “As they say, sometimes it rains,” said Sean Vardell of the Tribodyn Carolina Sprint Tour. “We were really looking forward to this event but are hoping to make it that much better in October when more folks are able to travel and join us for the inaugural Carolina Nationals. With the uncertain forecasts and all of the traveling racers coming from across the country, we owe it to them and their fans to give them a chance at a full weekend of racing, not a fruitless road trip.”Competitors who confirmed entries for the event have a handful of options which will be handled by the track, PPG Raceway (formerly Fayetteville Motor Speedway), including partial and full refunds, application to other events and more. Race teams are encouraged to contact the facility for instructions on pursuing their desired means of resolution. A replacement single-day event has been scheduled at PPG Raceway in Fayetteville on June 6 paying $1,000 to the winner and $225 to start.center_img IMCA.TV will carry the rescheduled Carolina RaceSaver Nationals on its new date, Oct. 23-24, and will immediately issue full refunds to those who have pre-purchased viewing passes. A production crew will also be on-site for the June 6 replacement event, also to be carried on IMCA.TV. For more information on the Carolina Sprint Tour, follow them on Facebook (@CarolinaSprintTour) or Twitter (@Tribodyn_CST). More information on their future broadcast events can be found at imca.tv, speedsport.tv and pitrow.tv.last_img read more

Liverpool: Brendan Rodgers says Reds lucky to beat QPR

first_imgLiverpool manager Brendan Rodgers said his side did not deserve their thrilling victory over QPR.The Hoops spurned several clear chances before four goals in the last eight minutes, culminating in Steven Caulker’s own goal, gave the Reds a 3-2 victory at Loftus Road.Rodgers said: “QPR certainly did not deserve to lose. We were lucky to win, but we showed tremendous character.”QPR definitely deserved something from the game. Overall, we were fortunate.”Liverpool led through Richard Dunne’s record 10th Premier League own goal before a breathless finale.Eduardo Vargas levelled three minutes from the end of normal time with his first QPR goal, before Philippe Coutinho drilled in Liverpool’s second. Vargas equalised again in added time before Caulker diverted a Raheem Sterling cross into his own net.Rodgers said his side, who climbed to fifth, had “no rhythm” in the first half and “there was no speed in the game”.He added: “Joe Allen and Philippe Coutinho coming on gave us a technical lift and we started to create more.”QPR remain bottom of the Premier League with four points from eight games.Manager Harry Redknapp described his side’s performance as the best of his tenure, but added they were “naive”. He said: “You need to take the point because, in our situation, it gives us all a big lift.”You organise with a minute to go, thinking we’ll take a point, we’re not going to get beat whatever happens and then to throw the result away, having worked so hard…”Everywhere I thought we were fantastic. We went after them all over the park and we won our battles in 90% of positions, but in the end we got done for being naive.”I still feel like we’re going to be OK. I’m really positive.”last_img read more