Prudential UK Enters into Buy-In Agreement with GlaxoSmithKline
Prudential UK Enters into Buy-In Agreement with GlaxoSmithKline
(PRWEB) November 25, 2010
Prudential UK has entered into two bulk annuity buy-in contracts with the Trustees of the GlaxoSmithKline (“GSK”) Pension Scheme and the GSK Pension Fund for a tranche of pensioner members within their defined benefit pension schemes. The transactions cover around 15 per cent of GSK’s UK defined benefit pensioner liabilities and have an aggregate value of approximately £900 million.
Under the terms of the agreement, GSK has purchased bulk annuity policies from Prudential which will take on responsibility for a portion of the pensioner benefits payable by the Trustees of the GSK Pension Scheme and Pension Fund. GSK will continue to administer the Scheme and Fund and the terms of the pension payments made to its scheme members will remain unchanged.
Andrew Crossley, deputy chief executive, Prudential UK & Europe, said: “Prudential has a unique set of capabilities in the annuities market including extensive longevity experience, a superior investment track record and operational scale. Our strategy for bulk annuities is to participate selectively in the market and only enter into transactions which meet our strict requirements for return on capital. This agreement demonstrates our ability to complete complex and innovative transactions within the bulk annuity marketplace.
“Our financial strength and strong track record continue to be significant factors for pension scheme trustees looking for a safe and secure home for their pensions. We believe that the GSK Pension Scheme and Pension Fund will benefit from our expertise and experience in the pensions and annuities markets.”
This contract will be recorded for accounting purposes within Prudential’s fourth quarter results for 2010.
About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including annuities, life assurance, bonds, pension funds, a tax calculator and retirement plans.
Prudential offers customers pensions and annuities, pensions retirement income (http://www.pru.co.uk/pensions_annuities/our_annuities/), insurance and investment opportunities.
Note to Editors:
The Prudential / GSK agreement is a ‘buy-in’ of annuities (http://www.pru.co.uk/pensions_annuities/pension_guide/near_retirement/) rather than a ‘buy-out’ of pension liabilities. A ‘buy-in’ is where a group annuity contract is bought as fund investments (http://www.pru.co.uk/investments/) and held by the Trustees. It belongs to the pension fund, not individual members. The Trustees hold the policy as a fund asset to meet its liabilities, and receives income from it to pay pensioners.
In effect, the GSK Pension Scheme / Fund have chosen to invest in an annuity policy to hold alongside their other assets. Individual scheme members will not become Prudential policyholders as they would in a ‘buy-out’. Instead, the Pensions (http://www.pru.co.uk/pensions_annuities/prudential_pensions/) Scheme / Fund will receive payments from Prudential which match the money the Trustees pay out to pensioners.
PR Contact:
Steve Colton
PR Manager
Prudential
3 Sheldon Square
London
W2 6PR
+44 (0) 20 7150 3136
http://www.pru.co.uk
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Vocus, PRWeb and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Categories: Social Security News Tags: Agreement, BuyIn, Enters, GlaxoSmithKline, Into, Prudential
Prudential UK Enters into Buy-In Agreement with GlaxoSmithKline
Prudential UK Enters into Buy-In Agreement with GlaxoSmithKline
(PRWEB) November 25, 2010
Prudential UK has entered into two bulk annuity buy-in contracts with the Trustees of the GlaxoSmithKline (“GSK”) Pension Scheme and the GSK Pension Fund for a tranche of pensioner members within their defined benefit pension schemes. The transactions cover around 15 per cent of GSK’s UK defined benefit pensioner liabilities and have an aggregate value of approximately £900 million.
Under the terms of the agreement, GSK has purchased bulk annuity policies from Prudential which will take on responsibility for a portion of the pensioner benefits payable by the Trustees of the GSK Pension Scheme and Pension Fund. GSK will continue to administer the Scheme and Fund and the terms of the pension payments made to its scheme members will remain unchanged.
Andrew Crossley, deputy chief executive, Prudential UK & Europe, said: “Prudential has a unique set of capabilities in the annuities market including extensive longevity experience, a superior investment track record and operational scale. Our strategy for bulk annuities is to participate selectively in the market and only enter into transactions which meet our strict requirements for return on capital. This agreement demonstrates our ability to complete complex and innovative transactions within the bulk annuity marketplace.
“Our financial strength and strong track record continue to be significant factors for pension scheme trustees looking for a safe and secure home for their pensions. We believe that the GSK Pension Scheme and Pension Fund will benefit from our expertise and experience in the pensions and annuities markets.”
This contract will be recorded for accounting purposes within Prudential’s fourth quarter results for 2010.
About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including annuities, life assurance, bonds, pension funds, a tax calculator and retirement plans.
Prudential offers customers pensions and annuities, pensions retirement income (http://www.pru.co.uk/pensions_annuities/our_annuities/), insurance and investment opportunities.
Note to Editors:
The Prudential / GSK agreement is a ‘buy-in’ of annuities (http://www.pru.co.uk/pensions_annuities/pension_guide/near_retirement/) rather than a ‘buy-out’ of pension liabilities. A ‘buy-in’ is where a group annuity contract is bought as fund investments (http://www.pru.co.uk/investments/) and held by the Trustees. It belongs to the pension fund, not individual members. The Trustees hold the policy as a fund asset to meet its liabilities, and receives income from it to pay pensioners.
In effect, the GSK Pension Scheme / Fund have chosen to invest in an annuity policy to hold alongside their other assets. Individual scheme members will not become Prudential policyholders as they would in a ‘buy-out’. Instead, the Pensions (http://www.pru.co.uk/pensions_annuities/prudential_pensions/) Scheme / Fund will receive payments from Prudential which match the money the Trustees pay out to pensioners.
PR Contact:
Steve Colton
PR Manager
Prudential
3 Sheldon Square
London
W2 6PR
+44 (0) 20 7150 3136
http://www.pru.co.uk
###
©Copyright 1997-2010, Vocus PRW Holdings, LLC.
Vocus, PRWeb and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Categories: Pension Calculator Tags: Agreement, BuyIn, Enters, GlaxoSmithKline, Into, Prudential
Unbalanced Pension Scheme Making Dents into the Already Battered Budgets of States
Unbalanced Pension Scheme Making Dents into the Already Battered Budgets of States
Unbalanced pension scheme is making dents into the already battered budgets of states with New York City and State being the worst affected. Many argue that there is nothing illegal or unethical if it happens that the pension is often many times more than the salary especially in the police and firefighting departments.
A spokesperson form the New York State Comptroller’s Office however said that an error pertaining to the city had been pointed by in 1986 by the Supreme Court of New York. It stated that the extra hours put in by the police force should not be taken into account while calculating the pension.
For New York and many other states the question of how to meet the generous pay packets being doled out has become a major problem at this point of time when the housing crisis has led to a drastic fall in revenue. It is translating into political death as other services are being cut to meet the pension requirements. Many of the cornered governments are reluctantly admitting they have promised their workers more than they can deliver.
In other developed countries both Greece as well as Spain have very recently cut down government pensions to deal with deficit budgets. The recently installed British government has observed that it will do some rethinking on the costs of public pension.
But under the present laws the municipalities of American cannot toe the same line. The constitution of New York State prevents public bodies from reducing the pace by which the workers build their pensions up throughout their tenure. It is in sharp contrast to the private sectors where the employers can alter the rate whenever they so desire. Since the last two years this is exactly what the firms have been doing. But the states and cities with an eye to the vote banks have been pleasing the unions – the vote banks.
The police and similar other workers engaged in looking after public safety generally retire after 20 years of service with full pension. Some other workers do so after working for three decades around the age of fifty five years. Those who are currently being recruited in New York will have to move along till sixty two years of age to avail of full benefits.
Data from Census shows that municipal pensions are much richer than the usual pensions doled out by firms.
Julie Thompson, has been working on ForeclosureWarehouse.com studying the foreclosures market, helping buyers on the finer points of New York. Try to visit ForeclosureWarehouse.com and find all related information about foreclosure.
Article from articlesbase.com
Categories: Social Security News Tags: Already, Battered, Budgets, Dents, Into, Making, Pension, Scheme, States, Unbalanced
Unbalanced Pension Scheme Making Dents into the Already Battered Budgets of States
Unbalanced Pension Scheme Making Dents into the Already Battered Budgets of States
Unbalanced pension scheme is making dents into the already battered budgets of states with New York City and State being the worst affected. Many argue that there is nothing illegal or unethical if it happens that the pension is often many times more than the salary especially in the police and firefighting departments.
A spokesperson form the New York State Comptroller’s Office however said that an error pertaining to the city had been pointed by in 1986 by the Supreme Court of New York. It stated that the extra hours put in by the police force should not be taken into account while calculating the pension.
For New York and many other states the question of how to meet the generous pay packets being doled out has become a major problem at this point of time when the housing crisis has led to a drastic fall in revenue. It is translating into political death as other services are being cut to meet the pension requirements. Many of the cornered governments are reluctantly admitting they have promised their workers more than they can deliver.
In other developed countries both Greece as well as Spain have very recently cut down government pensions to deal with deficit budgets. The recently installed British government has observed that it will do some rethinking on the costs of public pension.
But under the present laws the municipalities of American cannot toe the same line. The constitution of New York State prevents public bodies from reducing the pace by which the workers build their pensions up throughout their tenure. It is in sharp contrast to the private sectors where the employers can alter the rate whenever they so desire. Since the last two years this is exactly what the firms have been doing. But the states and cities with an eye to the vote banks have been pleasing the unions – the vote banks.
The police and similar other workers engaged in looking after public safety generally retire after 20 years of service with full pension. Some other workers do so after working for three decades around the age of fifty five years. Those who are currently being recruited in New York will have to move along till sixty two years of age to avail of full benefits.
Data from Census shows that municipal pensions are much richer than the usual pensions doled out by firms.
Julie Thompson, has been working on ForeclosureWarehouse.com studying the foreclosures market, helping buyers on the finer points of New York. Try to visit ForeclosureWarehouse.com and find all related information about foreclosure.
Article from articlesbase.com
Categories: Government Pensions Tags: Already, Battered, Budgets, Dents, Into, Making, Pension, Scheme, States, Unbalanced
Donate Your Clothing and Household Items to a Charity Before the “Pension Protection Act of 2006″ is Enacted Into Law
Woburn, MA (PRWEB) August 14, 2006
During the first week of August, the Senate approved the Pension Protection Act of 2006 by a vote of 93-5. The House had already approved this bill late in July. The President said that he plans to sign this Act into law.
In addition to sweeping changes to the pension plan rules, this Act also makes a few major changes to the tax deduction people can claim for their charitable donations. One big change applies to donations of clothing and household items. As of the enactment date of this new law, taxpayers can only claim a deduction for donated goods that are in good condition or better.
“Once President Bush signs the Pension Protection Act of 2006 into law, you’ll no longer be able to claim a deduction for your donated goods that aren’t at least in good condition. So now’s the time to clean out your closets and donate your unused clothing and household items to a charity,” suggests Andrew D. Schwartz, CPA founder of CPA Niche, LLC (www.cpaniche.com), a site where taxpayers can interact with CPAs who specialize in a variety of niches such as healthcare, real estate professionals, and lawyers.
As always, people who make donations of goods should list each item donated, including each item’s fair market value, and file that list along with their other tax documents. Keep in mind that unless an item is brand new or in excellent condition, it is probably worth no more than one-third of its original cost.
Taxpayers who claim a deduction in excess of 0 for donated goods need to complete and attach a Form 8283 to their tax returns. And anyone looking to claim a deduction in excess of ,000 generally needs to attach a written appraisal to their tax form as well. More information about non-cash contributions can be found in IRS Publication 526, Charitable Contributions, available at www.irs.gov. Give the IRS time to update this publication to reflect the new rules, however.
This Act also increases the documentation required for people claiming an itemized deduction for their donations of money to a charitable organization. Effective as of the Act’s enactment date, taxpayers must maintain a cancelled check, bank record, or receipt from the charity substantiating the date and amount of the donation.
“The Pension Protection Act of 2006 made numerous changes to the U.S. Income Tax rules and will take quite a while for taxpayers and tax professionals to digest,” warns Schwartz. “Even so, with the new standard for donations of clothing and household items taking effect when this bill is signed into law, anyone who waits to drop off their goods to a charity could lose out on a valuable tax deduction.”
Andrew D. Schwartz, CPA is the editor and founder of CPA Niche, LLC (www.cpaniche.com), a site where taxpayers can interact with CPAs who specialize in a variety of niches such as healthcare, real estate professionals, and lawyers. Schwartz has provided tax and basic financial planning advice in interviews with various media, including the Washington Post and Wall Street Journal. He is available for interviews.
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