The use of pension protection schemes (PPS) within calculations for the holistic balance sheet (HBS) has caused disagreements among Europe’s pension funds.A consultation from the European Insurance and Occupational Pensions Authority (EIOPA) on the HBS closed last week, with respondents generally rejecting the idea.However, in its consultation, EIOPA raised the debate over whether pension protection schemes should form part of the balancing items for potential solvency capital requirements – minimum funding levels of risk management tools in four of the proposed six models.The UK’s Pension Protection Fund (PPF) said, in principle, a PPS could be considered as impacting on sponsor support and thus used as a balancing item for the HBS. However, it said, in its case, it should not be used if the HBS is used for solvency or funding purposes.“[The PPF] steps in to compensate members when their pension schemes have insufficient funds to pay the pensions promised following a sponsor’s insolvency,” the fund said.“The trustees should not be running the scheme finances taking into account any compensation payable following the scheme’s disappearance, and to include the PPF on the balance sheet would run the risk trustees and employers came to target PPF levels of compensation.”The scheme also said that, where a PPS was used as a balancing item, a separate minimum level of funding with financial assets or sponsor support should be required.“We would be concerned the incentive for trustees and sponsors to properly fund their pension scheme would be reduced if there were no minimum funding requirement and the scheme’s HBS always balanced,” it added.However, the German pension fund association (aba) and the UK’s National Association of Pension Funds (NAPF) disagreed with the PPF over additional minimum-funding requirements.The aba said a PPS should be included as a balancing item, as it could be seen as collective sponsor support.“In the case of a strong sponsor or a sponsor backed by a pension protection scheme, the pension promise is safeguarded,” it said. “That is the rationale for treating these security mechanisms as balancing items. Thus, an additional separate minimum level of funding with financial assets should not be required.”Aon Hewitt, which took views from consultants across its European offices, said it was unconvinced a PPS should be used as a balancing item at all, unless it covered 100% of benefits.“To do so would create the possibility pension schemes would be under-funded in the event of employer insolvency, and this would then put pressure on the financing of the pension protection scheme itself,” Aon Hewitt said.Towers Watson’s UK office responded by siding with the PPF, but added that it should not come within EIOPA’s remit.“The protection of the PPS will require a separate minimum funding level based on financial assets/sponsor support to protect the viability of the PPS,” it said.“However, this is something that is best determined by the relevant individual member state and its national competent authority.”Consultation respondents also criticised EIOPA over conflicting views in its consultation and called for delays until all key factors were decided by the Authority.
The Cincinnati Pops Orchestra performs in front of a large crowd at Liberty Park in June 2013.The Cincinnati Pops Orchestra will not be returning to the Batesville Music and Arts Festival in June 2014.The Mayor’s Committee for the Performing Arts decided to nix the headliner due to budget constraints. The committee is currently searching for another headliner group.The Music and Arts Festival is scheduled for June 18-20, and will continue to offer the Rural Alliance for the Arts Community Art Show and the Texaco Country Showdown, which is presented by Jim True Ford in Brookville and WRBI.Individuals or organizations interested in offering a financial contribution to the annual arts show can mail checks to the Mayor’s Committee for the Performing Arts to Fifth Third Bank, c/o co-chair Jim Sturges, P.O. Box 30, Batesville, IN 47006.Additional inquires can be sent to co-chair George Brinkmoeller, 55 Crosstie Lane, Batesville.Committee members also include Ron Green, Bob Fitzpatrick, Joan Kuhlman, Lori Feldbauer, John Irrgang, Sarah Lamping, Andrea Wade and Debbie Blank.
RelatedPosts Italy introduces compulsory virus testing for travellers from France Nigeria records new COVID-19 infections, more deaths as figures rise to 57,242 I was in best of forms before Tokyo Paralympics was postponed — Powerlifter Ejike The International Olympic Committee continues to come under pressure to postpone the 2020 Tokyo Games due to the coronavirus pandemic. Sporting events around the globe have all taken action as life is put on hold for athletes and fans alike. On Saturday, US Track and Field sent an email calling for the US Olympic and Paralympic Committee to make representations about delaying the Games in Japan – set to start on July 24 – as the “right and responsible thing to do” in the circumstances. An increasing number of athletes have been speaking out over their fears for Tokyo 2020, particularly in relation to social distancing, which make their training programmes impossible to pursue. USA Swimming, meanwhile, had already asked the USOPC to push for a one-year postponement as the impact of the lockdown began to hit home. USATF chief executive Max Siegel wrote: “The right and responsible thing to do is prioritise everyone’s health and safety, and appropriately recognise the toll this difficult situation has, and continues to take, on our athletes and their Olympic Games preparations. “We are all experiencing unfathomable disruptions, and everyone’s lives are being impacted accordingly. “For those reasons, USATF is respectfully requesting that the (USOPC) advocate to the IOC for the postponement of the 2020 Olympic Games in Tokyo.” The Spanish Football Federation also called for this summer’s Olympics to be postponed. President of the RFEF Luis Rubiales made the request to IOC committee member Juan Antonio Samaranch Jr at a meeting with other Spanish sports federations, the governing body said in a statement. The meeting had been called by president of the Spanish Olympic Committee, Alejandro Blanco. Rubiales said in a statement: “At this time, health must prevail over any other issue and we must be on the side of our Government. “Sport is our reason for being, but now it must be in the background. We continue to work for football and solutions for this sector, however, now the duty as Spaniards is to stay united and to suspend all sports events.”Tags: CoronavirusInternational Olympic CommitteeIOCMax SiegelUSOPC