US - The California State Teachers' Retirement Fund (CalSTRS) has reportedly issued a stark warning to trustees: be prepared for the possibility of challenging times in 2007- 08.
In a report said to have been dispatched to trustees last week, officials observed they had never seen so much global wealth chasing so few investment opportunities.
As a result, this means this year and next could be among the most challenging times since 2001, officials reportedly said.
The stormy outlook comes after the US$171.1bn pension fund is reportedly set to fall US$19.6bn short of its funding liabilities over the next 30 years, despite three good annual returns.
Global Pensions recently reported the $19.6bn shortfall was highlighted in a study by Milliman actuarial consultants which was said to have claimed members would need to boost contributions by 3.3%.
While returns from real estate investments are expected to come in at around 30% for 2006-2007, Christopher Ailman, chief investment officer at CalSTRS, cautioned trustees about expecting double-digit gains in future, according to reports.
An airstrike in Iran, a US recession, an outbreak of bird flu and tension between China and Taiwan could hammer global financial markets, said Ailman.
Despite this, Ailman reportedly said CalSTRS continued to be on a growth track and predicted the fund could reach $250bn within the next five years.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.