Your Quarterly Pensions Update Q1 2019

1,193. The number of world ranking places that Tiger Woods has climbed in just over a year. A comeback to rank amidst the finest sporting comebacks. A story of resilience. A lesson in positivity triumphing over adversity.

Normally when I sit down to write an introduction to Dalriada’s latest Quarterly Update I struggle to find a current event that may have some (often tenuous) link to the topics in the report, or that are ripe for making (even more tenuous) puns. Well, not this quarter!

All week the front pages of my usual news feeds have had images of this sporting legend draped in his new (but fifth) green jacket. Like many of you reading this, I had given up hope of seeing the halcyon days of Woods’ return to golf. Yet, from the nadir of a personal life implosion, numerous surgeries and a world ranking of 1,199, hope and positivity were still retained by Tiger, if not by the rest of us. Now, the news bulletins are awash with congratulations from sport stars, world leaders and people from all across the globe, hailing the return of this thrilling force of nature. Pessimistic talk of an irreversible slide has turned to optimistic predictions of more major championships to come.

The first quarter of 2019 has seen a different type of slide for DB pension funds, with scheme funding levels falling considerably towards the end of March, driven by falling gilt yields. UK pension schemes were once at the top of the world rankings too, but have seen their standing slip in recent years. Yet in the midst of these chastening times there are positives to be had. Like the reaction of Tiger Woods, there is resilience. There is a desire to learn and prepare, to come back stronger, healthier and more secure.

This Quarterly Report discusses progress made to protect members from pension scams, with the new cold calling ban. There are features on the Regulator’s new guidance on scheme data and how to better value DB schemes going forward. We’ve also included a summary of the government’s approval of Collective Defined Contribution schemes, as a means for members’ benefits to be better protected as a result of pooling contributions and risk together.

No matter how disheartening an image may be – an icon of sport in ruins, or the increasing size of a scheme deficit – there are always actions we can take to find positives and come back stronger. Hopefully our Quarterly Report assists in that effort and helps schemes get back into the swing of things (I couldn’t resist at least one golf pun!).