US -California governor Arnold Schwarzenegger equated the state's rising pension costs to a "locomotive" and pledged to make pension reform a priority in 2010 in his annual State of the State address yesterday.
Addressing the California legislature, he said: "We are about to get run over by a locomotive and we can see the lights coming at us. We can see the lights coming. I ask the legislature to join me in finding the equivalent of a water deal on pensions, so that we can meet current promises and yet reduce the burden going forward."
The state currently spends US$3bn per year funding pension deficits and that amount is expected to increase to $10bn, he said. The current cost of the state employee system has jumped by 2000% over the past decade, Schwarzenegger continued, while revenues are only up 24%.
The governor called for the legislature to consider ways to reign in costs including changing the pension provisions for new hires, though current employees won't be affected.
He said: "Now, for the current employees these pensions cannot be changed, either legally or morally. We cannot break the promise that we already made. This is a done deal."
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.