UK - The £1.8bn Essex County Council pension fund is the only scheme to have managed a full bulk transfer of member AVCs from Equitable Life, a survey shows.
It said that while many schemes had attempted partial buyouts from the beleaguered insurer, Essex CC was the only scheme to have completed a full buyout for all members under the age of 50.
The council took the decision as it claimed that its members’ funds were at danger at Equitable Life because its position “could only get worse”.
One of the key problems faced by schemes that wished to carry out buyouts from Equitable was the cost of doing so. Earlier this year the J. Sainsbury Pension & Death Benefit Scheme tried to buy out all its members’ funds, but said the terms offered by Equitable Life were unacceptable to its members.
The survey also revealed that many companies such as BT, Imperial Tobacco and Barclays have left their Equitable Life AVCs open and that some members were still making contributions, in spite of being warned about the risks involved.
LexisNexis Occupational Pensions survey concluded that many schemes had left their Equitable Life AVCs open over legal concerns at enforcing such decisions on scheme members.
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The £30bn local government pension pool has appointed Quoniam and Robeco to manage an active equity portfolio worth around £400m.
The volume of insured buyouts from FTSE 100 defined benefit (DB) schemes could increase from £5bn to £300bn by 2029, according to Lane Clark & Peacock (LCP).