US - More than US$49.4m has been pumped into a pension fund belonging to the firefighters and retired firefighters of St Louis after a court ruling.
The transfer of funds from the city was the result of a Missouri Supreme Court ruling last March in favour of the Firemen’s Retirement System of St. Louis (FRS).
This requited the city of St. Louis to fully fund the retirement system according, according to Dan Tobben, an attorney with Clayton-based law firm Danna McKitrick, who handled the case for the $417m fund.
Commenting on the ruling, Tobben said: “It sends a signal to all communities that they either properly fund the pension plans for municipal employees or face grievous consequences.”
In the same opinion, the supreme court also ruled in favour of the $714.2m Police Retirement System (PRS) of St Louis.
As a result, the St Louis Board of Alderman passed an ordinance to authorise the St Louis Municipal Finance Corporation to issue up to $155m in bonds to fund the firefighter, police and municipal retirement systems.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.