DAVID WILLETTS MP, shadow secretary of state for work and pensions, will tonight announce Tory plans to scrap the three-quarters pension rule towards a compulsory annuity, says this morning's Daily Telegraph .
If the Conservative party is elected into government at the next election, Willetts will get rid of the requirement to spend at least three-quarters of a person’s pension on an annuity and instead issue longer-dated gilts which could then reduce the “longevity risk” of the existing regime.
Willetts is expected to repeat the Conservative’s pledge to restore the link between state pensions and earnings inflation in a bid to lift 1m people out of means-tested benefits.
BILLIONAIRE entrepreneur Philip Green, should get the pensions information he needs to launch a bid for Marks & Spencer by the end of the week, after the M&S pension fund trustees agreed to address his concerns in “the next few days”, says the Times.
Executives will meet this week to discuss Green’s requests for information however, CSFB investment and Smithfield Financial, the public relations agency, were appointed at the weekend to find out the size of M&S’s pension deficit and how much of it, if any of it, he would have to plug.
The pension black hole was £670 million in April, according to M&S’s annual report.
ROYAL & SunAlliance is also thought to be close to signing a deal with Resolution Life Group – set up by GE Holdings - to sell its remaining life insurance business, continues the Telegraph.The deal is thought to be financed by raising £750m in equity and debt, along with
another £150m raised though preference shares, however, the deal is still subject to FSA approval.
ALTHOUGH it is not a personal finance story, one interview which has made the headlines is with Easyjet’s Stelios Haji-Ioannou, who this weekend suggested he may take the budget airline private agai, says the Scotsman.
STELIOS, the flamboyant entrepreneur who retains a 41 per cent shareholding in EasyJet, the listed no-frills airline that he founded, has stoked speculation that he might seek to buy the company back and take it private.
This could be because the EasyJet share price has slumped over the past month, having earlier warned profits were being hit harder than expected by competition from rival operators and soaring fuel costs.
Before trading opened this morning, Easyjet’s share price stood at 156.75p, down from 380p in the past year and valuing the business at some £625m.
Heavy workloads, pressure to meet targets and management style were said to be the main spark for stress-related illnesses, according to the survey of employers by the Chartered Institute of Personnel and Development.IFAonline
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