Investment

UK - Abolishing contracting out for final salary schemes could eventually lead to a higher universal state pension, an analyst says.

Defined contribution scheme members are overly optimistic about reaching their retirement targets, Towers Watson research shows.

EUROPE - The European Commission is reviewing a letter from nine member states seeking to alter the way public debt is calculated to account for changes in state pension systems.

Institutional investment in Gartmore's £3.6bn alternative funds business increased to 70% of total assets under management in the first half of 2010, interim results show.

NORWAY - The Government Pension Fund Global saw 5.4% (155bn kroner, $25bn) wiped off its investments in the second quarter of 2010, pulled down by a decline in global equity markets and a massive loss on its stake in BP.

News that the Norwegian Government Pension Fund Global lost €1.1bn on its 1.75% stake in BP has highlighted the potential impact faced by UK schemes, FairPensions says.

MEXICO - The Mexican Association of Administrators of Retirement Funds (Amafore) recorded profits of 2.6% in June, achieving a cumulative average of 6.6% in annualised terms.

The Department for Work and Pensions has issued a formal consultation on proposals to shift the inflation link for increases in PPF and FAS payments from the retail prices index (RPI) to the consumer prices index (CPI).

The Department for Work and Pensions' plans to abolish transfers between contracted-out defined benefit and defined contribution schemes could lead to a "firesale" of final salary liabilities, a consultant warns.

UK - The Department for Work and Pensions' plans to abolish transfers between contracted-out defined benefit and defined contribution schemes could lead to a "firesale" of final salary liabilities, a consultant warns.