UK - Unequal pensions benefits are one of the key issues prompting strikes by London Underground workers.
Unions are unhappy that some workers in the £3.25bn London Regional Transport Pension Fund are enjoying better benefits than others. The discrepancy has been caused by the merging of two schemes which offered different benefits.
Aslef executive committee chairman Terry Wilkinson said: “Anyone joining today can go straight into the scheme, regardless of age. But in the past that wasn’t always the case.”
One of London Underground’s two pre-merger schemes did not allow employees to join until they were 25 years old. Now employees who were locked out for their first years of employment are looking to have those years reinstated.
Unions are also unhappy that some members in the scheme benefit from consumer price index weighting and a lower earnings limit offset while others do not. London Underground says that the cost of implementing all the changes being sought by unions could total £65m.
London Underground head of employee relations Mike Gardiner said: “We are going to ask trade unions to be patient, to work with us to see where we can make sensible improvements that are affordable, achievable and realistic.”
The PPI has unveiled a policy paper outlining current considerations and policy debates relevant to DC scheme default strategies. Kim Kaveh explores some of its views.
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).