EUROPE - Luxembourg is planning to outsource the management of the assets in the social security pension reserve fund for white collar workers.
“The white collar workers system has at the moment big reserves which have to be managed more effectively,” a spokesman for the fund said.
“That is the purpose of the law which is foreseen to pass the parliament in the next month.”
The funds are currently limited to investment in loans or bonds, but the law will increase diversification to boost returns.
The asset mix will be extended to include equities but the spokesman was not able to give the final breakdown of the limits of the asset allocation. The fund is currently valued at e4bn.
The change was foreseen in the government’s electoral programme when it came to power in 1999. The government felt that the fund was not producing as high returns as it might have been, given that the stock market was booming at the time.
The likely date of the implementation of the change is still not clear.
The Luxembourg social security system has four separate pension funds, whose assets are managed on behalf of four groups of workers.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.