The ICSA Pensions Guide explains the regulatory framework governing company pensions and the different types of pension available. It provides comprehensive guidance to managers, helps administrators set up and maintain pension schemes, and describes the nature of the relationships which exist between pension fund managers and third parties, such as pension scheme trustees, auditors, actuaries and insurance companies.

The ICSA Pensions Guide provides detailed guidance on the procedures that should be established and the type of information that should be recorded. Sample letters, checklists and forms are included in the book and accompanying CD to guide you through setting up and running a pensions scheme.

Key features:

• Provides practical and comprehensive guidance to the non-specialist
• Details the necessary steps and procedures needed to ensure the efficient administration of company pension schemes
• Provides valuable guidance on how to manage the relationship between provider, company and scheme members, where company pension schemes are administered by third parties
• Includes specimen letters, forms and checklists on the accompanying CD, reducing the time and effort spent drafting documents
• Includes guidance on stakeholder pensions

Paperback •  ISBN: 9781860721762 •   350 pages • Published September 2002 • £41.95

Contents
Preface
Acknowledgements
Abbreviations
Part I Background to pensions in the UK
1. A brief history of private pension provision.
Social Security Act 1973, 75, 85, 86.
Finance Act (No. 2) 1987.
Finance Act 1989.
Social Security Act 1990.
Barber v. Guardian Royal Exchange, 1990.
Pensions Act 1995.
Finance (No. 2) Act 1997.
The Welfare Reform and Pensions Act 1999.
Finance Act 2000.
Child Support, Pensions and Social Security Act 2000.
2. State pensions. A brief history.
Beveridge Report, 1942.
State Graduated Scheme.
Social Security Pensions Act 1975.
Sickness and incapacity benefits.
State Second Pension.
Levels of state benefits at 6 April 2002.
3. Available methods of retirement provision in the UK.
Personal pensions.
Private sector occupational pension schemes.
Public sector pension schemes.
Industry-wide pension schemes.
Small self-administered schemes.
Additional Voluntary Contributions.
Free-Standing Additional Voluntary Contributions.
Stakeholder pensions.
Unapproved pension arrangements.
4. Contracting out of the state schemes.
A brief history.
What is contracting out?.
Methods of contracting out.
Effects of contracting out on employers and individuals.
The effects of the State Second Pension on contracting out.
Options going forward.
Simplification of contracting-out legislation.
Additional age-related rebates payable for contracted-out DC schemes.
Additional age-related rebates payable for appropriate personal pensions.
5. Occupational pension schemes: what are they, and how do they work?.
Introduction.
Defined benefit schemes.
Defined contribution schemes.
Hybrid pension schemes.
Group personal pension schemes.
Stakeholder pension schemes.
Flexible benefit schemes.
6. Pensions and the law.
Introduction.
Important dates, statutes and regulations governing pensions law.
Trust law.
The Pensions Act 1995.
Discrimination.
Data protection.
Divorce.
Investment.
Preservation of pensions.
Disclosure.
7. Institutions and bodies involved in pensions provision.
National Insurance Contributions Office.
Inland Revenue Savings, Pensions, Share Schemes.
Department of Work and Pensions.
Occupational Pensions Regulatory Authority.
Pensions Registry.
The Pensions Advisory Service.
Financial Services Authority.
Pensions Ombudsman.
Pensions Compensation Board.
National Association of Pension Funds.
8. Roles and responsibilities.
Trustees.
Actuary.
Auditor.
Lawyers.
Part II Administering a scheme yourself.
9. Good housekeeping.
Scheme booklet.
Appointing professional advisers.
Bank accounts.
Calculations manual.
Procedures manual.
Communication with members and third parties.
Investment and disinvestment of contributions.
Appendix 9.1 Calculations manual.
Appendix 9.2 Procedures manual.
10. Information technology.
Providers of pensions administration software.
What to look for and questions to ask.
Suppliers of pensions administration software.
11. Administering a scheme yourself: the basics.
New members.
Transfers into the scheme.
Withdrawals from the scheme.
Deferred pensions.
Transfers out.
Retirements.
Deaths.
Appendix Sample documents relating to new members.
Appendix Sample documents relating to transfers in.
Appendix Sample documents relating to withdrawal from scheme.
Appendix Sample documents relating to transfers out.
Appendix Sample documents relating to retirement.
Appendix Sample documents relating to death of a member.
12. Other regular practices.
Interfaces with other departments.
Verifying and validating incoming information.
Certificates of existence.
Appendix Sample certificate of existence.
13. Disclosure of pension scheme information.
Disclosure requirements.
Automatic disclosure in certain circumstances.
14. Risk insurance.
Introduction.
Life assurance benefits.
Dependants’ death in service pensions.
Undertaking market reviews.
Underwriting.
Keeping the insurers informed.
Permanent disability insurance.
Appendix 14.1
Group risk rebroking specification: death in service.
Appendix 14.2 Group risk rebroking specification: permanent health insurance.
15. Working with external agencies.
Occupational Pensions Regulatory Authority.
National Insurance Contributions Office (Contributions Agency).
Inland Revenue Savings, Pensions, Share Schemes.
16. Financial management.
Introduction.
Checks and controls.
Timescales.
Benefit payments.
Cash-flow forecasting.
Year-end accounts.
Short-form accounts to members.
Pension accounting software providers.
Appendix Sample of year-end accounts.
17. Communications.
Introduction.
Methods of communication.
Scheme booklets.
Electronic media.
Benefit statements.
Seminars and workshops.
Appendix Explanatory booklet.
Part III Working with third-party administrators.
18. Working with third-party administrators.
Introduction.
Deciding which areas to outsource.
Choosing a provider.
Contracts.
Expectations of each party to the contract.
Monitoring performance: Service Level Agreement.
Quality monitoring: the members’ opinions.
Summary.
Appendix Sample invitation to tender for pension administration services.
Appendix Sample service level agreement.
Appendix Sample quality assurance questionnaire: retirements.
Further reading.
Index.

About the author
Alison Tegerdine: After graduating in law and business administration from Leicester University in 1989, Alison Tegerdine embarked on her career within the pensions industry with Equity and Law (now AXA). She has subsequently worked in both the public and private sectors. More recently, Alison has been Associate Director at SBJ Benefits Consultants and Director of Pensions Administration with EDIS Partnerships. Currently, she is Administration Services Manager at AON Consulting. Alison is an OPAS advisor and has published numerous articles in pensions periodicals such as Pensions Management and Professional Pensions.