INCLUDING - CalPERS reassures members over budget deadlock; NPRF reports terrible H1; Quebec bill 68 gets go ahead; PBGC injection to Norwegian-owned fund
The Irish National Pensions Reserve Fund (NPRF) reported a -12% return in H1 2008 with a -1.7% for Q2, bringing the fund value to Ä19.4bn (US$ 30.51bn) at the end of June. In its 2007 report, the fund said it had terminated Capital International's Ä789m global equity mandate and a Ä300m Japanese equity mandate held by JP Morgan Asset Management, without stating its reasons for doing so.
Quebec's Bill 68 on supplemental pension plans has received assent but contains last minute surprise amendments which may prove problematic, said Watson Wyatt. The bill states DB and hybrid plans cannot limit or reduce the crediting of service, accumulation or value of benefits and employers cannot reduce or limit their obligations regardless of withdrawing or terminating the plan.
The Pension Benefit Guaranty Corp (PBGC) will add $17.3m to the Norwegian-owned Elkem Metals pension scheme, with a view to providing an extra $22m should the PBGC eventually take over the plan. Unlike other situations involving the PBGC, the Elkem scheme is a going concern and the company has agreed to add its own top-up and reduce plan risk.
ïï¿½¬ Investors have flocked to European and international developed equities according to ishares. The ETF provider said it had seen inflows of over US$3bn in the last six weeks to these markets as fears of a global economic slowdown hit investor confidence towards emerging markets.
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.