UK - Local authorities have been short-changed if they have used cash from council house sales to plug scheme deficits.
A House of Commons public accounts committee report claims council houses have been undervalued because the original model was flawed.
A total of 41 English councils, representing 16 pension funds, have been given the go-ahead to deposit capital receipts into their pension schemes. At least 10 have already done so and the others have until March 31, 2004, to finalise transactions.
The £343m London Borough of Brent Superannuation Fund has moved about £2.8m to boost its pension fund.
The £860m West Sussex Council Pension Fund confirmed that four councils – Adur, Arun, Chichester and Crawley - have contributed capital receipts to the fund totalling £28.5m. A spokeswoman indicated this was likely to have been the result of council house sales.
But the Commons Improving Social Housing Through Transfer report said: “The requirement that local authorities use a standard model to calculate the transfer value of homes may have led to the undervaluation of the homes transferred so far.”
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.