Latest Press Reports

[Tim SMITH]

This link is to an article in Professional Pensions, entitled TPR disputes legal challenge over Halcrow restructuring (21 July 2016).

http://www.professionalpensions.com/professional-pensions/news/2465534/tpr-disputes-legal-challenge-over-halcrow-restructuring

[Tim SMITH]

This link is to an article in Building magazine, entitled Halcrow pensioners press on with legal challenge (21 July 2016).

http://www.building.co.uk/halcrow-pensioners-press-on-with-legal-challenge/5082753.article

[Tim SMITH]

This link is to an article in The Actuary, entitled TPR faces legal challenge on pension restructure (14 July 2016).

http://www.theactuary.com/news/2016/07/tpr-faces-legal-challenge-on-pension-restructure

The subheading is:

The Halcrow Pensioners' Association (HPA) has announced it will launch a legal challenge to protect the Halcrow pension scheme from being altered.

[Tim SMITH]

This link is to an article on the website of Macfarlanes, solicitors, entitled Halcrow: Latest Restructuring
of a Pension Scheme (July 2016).

http://www.macfarlanes.com/media/666303/halcrow-latest-restructuring-of-a-pension-scheme.pdf

[Tim SMITH]

This link is to an article in The Sunday Times, entitled Pensioners scrap with regulator (24 July 2016).

http://www.thetimes.co.uk/edition/business/pensioners-scrap-with-regulator-vl3l9q9b9

It is about the HPA's pursuit of a court review of the deal agreed by Halcrow, the HPS trustees and the Pensions Regulator. The text is:

A group of pensioners at the engineering consultancy Halcrow have launched a legal challenge to plans that will cut the benefits of 3,200 current and former staff.

The Halcrow Pensioners Association, which claims to represent more than 500 members, has asked for a court review of a deal agreed by the company, its trustees and the Pensions Regulator.

In May, Halcrow told its retirement savers of an agreement that would give them the option of transferring to a new scheme or entering the Pension Protection Fund (PPF), the industry-backed lifeboat, which imposes cuts of at least 10% in the benefits.

The new scheme will offer members a one-off boost of up to 2.5% to their savings but will cut their annual increases from the current level of about 5% to the rate of inflation as measured by the consumer prices index, which stood at 0.5% in June.

The announcement comes after several years of fretting over Halcrow's pension fund, which had a deficit of more than £630m at February on a "buyout" basis — the cost of insuring it with a third party.

CH2M Hill, the American engineering giant whose projects include Crossrail, bought Halcrow in 2011. It has warned that without a solution, the fund could push Halcrow into administration.

Edward Evans of the Halcrow Pensioners Association said he saw the legal challenge as "the only way to stop this secretive deal to slash our pensions for the benefit of the American parent company".

The Pensions Regulator, which is contesting the challenge, said the restructuring was "the best outcome that could be achieved in very difficult circumstances".

[Tim SMITH]

Halcrow Pensioners' Association withdraws legal challenge

This link is to an article in Professional Pensions, entitled Halcrow Pensioners' Association withdraws legal challenge over Halcrow Pension Scheme restructuring (28 July 2016).

http://www.professionalpensions.com/professional-pensions/news/2466294/halcrow-pensioners-association-withdraws-legal-challenge-over-halcrow-pension-scheme-restructuring?utm_medium=email&utm_campaign=PP.SP01.Daily_RL.EU.A.U&utm_source=PP.DCM.Editors_Updates

Copy attached.

[Mort Deas]

A report from the Guardian which is surely of interest and relevant to us all.



https://www.theguardian.com/money/2016/jul/30/state-pension-triple-clock-doubts

[Mort Deas]

A piece from the Daily Mail which pours cold water on my earlier post. :-)

http://www.dailymail.co.uk/news/article-3716506/I-won-t-ditch-triple-lock-Theresa-insists-WON-T-slash-retirement-pots-elderly-people-leaked-government-memo-proposed-scrapping-rules-boost-state-pensions-2-5.html

[Jane Tordoff]

All over the media this morning.

[Tim SMITH]

PPF compensation cap may not comply with EU law, says Court of Appeal

Here is a piece from Professional Pensions, entitled PPF compensation cap may not comply with EU law, says Court of Appeal (29 July 2016).

(How come they can afford to go all the way to the Court of Justice of the European Union, whereas HPA cannot get to the Upper Tribunal?)

[Tim SMITH]

Frozen Pensions

Further to the previous press report (above) is an article of Monckton Chambers 28 dated July 2016 (link below) suggesting that an EU ruling might be made that pensioners in receipt of PPF compensation must receive at least half of any entitlements to annual increases in their pension.

"Of potentially even greater significance than the impact of the ruling on the cap is the potential impact of any ruling that pensioners in receipt of PPF compensation must receive at least half of any entitlements to annual increases in their pension. Such a ruling will potentially benefit thousands of PPF members, including those who were initially in receipt of 90% or 100% of their original pension but who have lost any rights they had to index-linked or guaranteed annual increases."

http://www.monckton.com/gerry-facenna-qc-james-bourke-secure-court-appeal-reference-european-court-justice-ppf-pensions-cap-indexation-rules/

What are the possible ramifications of this? On the face of it, by agreeing to enter the new, inferior Halcrow scheme one might lose the benefit of such a ruling. However, perhaps one is protected from that eventuality by the rule that Halcrow has stated will "ensure that, if at any point you or your survivors would have received more pension if you had chosen to go into the Pension Protection Fund, the new scheme will pay the amount the Pension Protection Fund would have paid." (Halcrow letter ref 11 dated 31 May 2016, third page, second paragrph)

[finneyb]

I wonder if this is why the deadline has been extended, excellent research Tim;

and here's me thinking they were being thoughtful

[Tim SMITH]

Businesses 'milking and dumping' to shed pension deficits

Businesses are 'milking and dumping' to shed pension scheme deficits, according to a report by the Pensions Institute at Cass Business School. The author says that the study is particularly topical, given what has been happening at companies like BHS, Halcrow and Tata Steel – with allegations of excessive dividends paid to proprietors, bludgeoning pensioners into accepting lower benefits, proprietors distancing themselves from legal liability and incoming proprietors seeking to avoid liability altogether.

http://www.pensionsage.com/pa/Businesses-milking-and-dumping-to-shed-pension-deficits.php%20.php

[philjohnson]

Tim. Your post 1/08 regarding frozen pensions and the potential HGL/Trustee safety net clause ref 11 31 May 2016 letter does state that even if you elected for HPS2 you would be guaranteed commensurate improved PPF benefits should that retrospectively occur. As for instance the Hampshire case at court of appeal now with the ECJ for a ruling. This is reassuring if this is really a cast iron guarantee by CH2 and HGL. All the same I am of the view that a personal complaint to the Pensions Ombudsman to put all transfers on hold until this case is heard is entirely sensible and reasonable.
Good work Tim.

[John Ratsey]

Those with a subscription to the Times / Sunday Times can read all of this report from today's edition.