Pension schemes have been “shoehorned” into valuing liabilities against gilts, creating a “herd mentality” that does not reflect scheme funding accurately, says PwC.
Mercer has launched a defined benefit (DB) master trust in a bid to offer a “best-in-class solution” that recognises the shrinking universe.
A burgeoning superfund market could be on the cards within three years as defined benefit (DB) scheme trustees and sponsors face myriad legislative, economic, and capacity issues, says Lane Clark & Peacock (LCP).
Plans to improve value to members in defined contribution (DC) plans by improving investment options and governance while consolidating small schemes have been welcomed as a “wake-up call” for the industry.
Around £12.6bn of buy-ins and buyouts were completed in the first half of 2020 despite the onset of the Covid-19 pandemic, according to Lane Clark & Peacock (LCP) analysis.
Pension Insurance Corporation (PIC) Group secured £3.5bn of defined benefit (DB) scheme liabilities throughout the first half of the year, although adjusted profits fell by nearly three-quarters.
A falling average quality of fixed income indices combined with intensifying competition for high-quality assets could make it more challenging and costly for pension funds using benchmarks.
Sole trustee appointments are featuring more often in tender proposals as schemes seek nimbleness and expertise. James Phillips looks at a Kempen white paper on the burgeoning market.
Barnett Waddingham has used a Camradata service to source bespoke ESG manager research and market insights, as well as establish universes and strategies for ESG-related funds for clients.
The Civil Aviation Authority Pension Scheme (CAAPS) has appointed BlackRock to run a £4bn fiduciary mandate for its growth portfolios.
Pension companies must be given the power to trigger an “urgent regulatory response” to savers at risk of fraud, while regulators should be able to override the right to transfer, The People’s Pension and The Police Foundation have said.
The Plumbing and Mechanical Services (UK) Industry Pension Scheme has appointed independent consultant Pi Consulting to conduct a review of its governance.
The average recovery plan length for schemes in deficit has fallen by 2.2 years compared to three years ago, according to an Aon study.
Trish Houston has been appointed as chief operating officer (COO) at Law Debenture and will also join its board as an executive director.
Oversimplification must be avoided in The Pensions Regulator’s (TPR) proposed revision of the defined benefit (DB) scheme funding code, and a third way might be necessary, the industry has said.
This year might prove to be a blip in the growth of the bulk annuity market despite volumes trending towards £25bn, according to Mercer.
The Marathon Service (GB) Limited Pension and Life Assurance Scheme has completed a £610m full buy-in with Rothesay Life, covering the benefits of more than 1,400 members.
The Pensions Policy Institute (PPI) has launched a research series focused on identifying practical ways to improve trustee and contract-based scheme provider engagement on ESG issues.
Both open and closed defined benefit (DB) schemes will be given the clarity and flexibility they need under the proposed revision of the funding code, says The Pensions Regulator (TPR).
Nest has completed its plans to rid its investment portfolio of tobacco assets a year earlier than it had anticipated.
The Pensions Regulator’s (TPR) proposal for a ‘fast track’ approach to defined benefit (DB) scheme funding regulation is being “used too broadly” and in danger of suffering from “mission creep”, says Aon.
The Local Pensions Partnership (LPP) has invested £150m in private rental housing, joining a consortium of investors who have so far committed to £1.2bn for the build to rent platform.
The Hitachi UK Pension Scheme has agreed and completed a £275m buy-in deal with Legal & General (L&G) covering the remaining benefits in the scheme.
The Pension Protection Fund (PPF) and Department for Work and Pensions (DWP) will appeal court judgments relating to the way the lifeboat fund pays compensation.
Potential changes to the way the Retail Prices Index (RPI) is calculated and reported could cause assets to fall by between £60bn and £130bn, according to various estimates.
Three investment professionals tell Professional Pensions how the pandemic has impacted scheme portfolios, what opportunities may arise post-pandemic, and the key lessons for trustees
Lane Clark & Peacock (LCP) reported record income of £126.5m for the financial year ending 31 March 2020, up 10.1% on last year’s figure of £114.9m, also a record at the time.
Foresight has completed the acquisition of the Pensions Infrastructure Platform (PIP) just one month after announcing the planned purchase.
Capita has deferred a £31.7m deficit recovery contribution (DRC) due to the Capita Pension and Life Assurance Scheme in June 2020 to the second half of the year.
The Siemens Benefits Scheme has agreed a £530m buy-in with Legal & General (L&G), insuring the benefits of more than 2,300 pensioner members.
Coats Group has agreed with its UK pension trustees to defer the payment of its remaining deficit recovery contributions (DRCs) for 2020.
The ICI Pension Fund has completed its ninth buy-in with Legal & General (L&G), insuring a further £70m of benefits and bringing total insured benefits with L&G to around £5.8bn.
Just Group completed £460.3m of bulk annuity deals in the six months to 30 June, its half-year results have revealed.
The Littlewoods Pensions Scheme has completed a buy-in covering just under £930m of around 6,500 members’ benefits with Rothesay Life, the majority of which relate to deferred members.
The Local Government Pension Scheme (LGPS) funds of Lothian, Falkirk and Fife have appointed three independent advisers to their joint investment strategy panel (JISP).
Every month, several firms issue trackers of the aggregate defined benefit (DB) scheme funding position. See here for the July 2020 estimates on the various measures…
Defined benefit (DB) schemes will have to wait an extra year and a half on average to agree a buyout compared to their pre-Covid-19 endgame journey plans, Barnett Waddingham estimates.
ITV has submitted a £31m offer to The Pensions Regulator (TPR) for the Box Clever Pension Scheme after being forced to set out how it would financially support the scheme following a lengthy court process.
Phoenix Group has reported a £36m increase in group operating profit in the first six months of this year, as well as strong cash generation of £433m.
Aviva’s operating profit fell by 11% in the first half of the year as Covid-19 hit business activity, although a growth in bulk annuity sales partially offset the drop.
River & Mercantile’s (R&M) fiduciary management arm has appointed PTL to conduct an independent value for members review of its portfolio of defined contribution (DC) clients.
The Hays Pension Scheme has agreed a six-year contract extension with EQ Paymaster to deliver services including GMP equalisation, data cleansing, and address tracing.
Scottish Widows has invested £2bn of pension fund assets to become the inaugural investor in BlackRock’s authorised contractual scheme (ACS) Climate Transition World Equity Fund.
NHS Pension Scheme members in England and Wales have been given a further six months to take advantage of the voluntary scheme pays process for the 2018/19 deadline.
Longevity swap usage is expected to grow further as more reinsurers enter the market to hedge the risk of deferred members, according to Mercer.
The number of defined benefit (DB) schemes employing a sole trustee model is expected to double over the next five years, according to an Aon poll of the sector.
EValue has launched a range of investment pathway solutions ahead of the implementation deadline next February.
The Pensions Administration Standards Association (PASA) has published follow-up guidance for administrators as they navigate their way out of the Covid-19 lockdown.