IRELAND - Pegging defined benefit schemes' liabilities to Irish bonds instead of German and French bonds could significantly ease the burden of underfunding, said Aon Hewitt.
Although bond yields have increased following their sharp decline in August, German bond yields are still far below their levels at the beginning of the year offsetting the benefits gained from the rally in the equities markets, said Betty O'Reilly, senior investment consultant at Aon Hewitt.
"If the recently announced review of the funding standard leads to pension liabilities being measured by reference to Irish bond yields, the pressure would ease significantly given the current risk premium priced into Irish government bonds," said O'Reilly.
In October, Irish pension funds rose by 1.2% in October and 7.1% since the start of the year, according to the Aon Hewitt Managed Index.
O'Reilly said: "Equities have rallied over the last two months as investors anticipate that the U.S. Federal Reserve will announce a further round of quantitative easing in November. With a decision expected tomorrow, market reaction will reveal investors' level of confidence in the U.S. economic recovery."
The eurozone was the strongest performing market, returning 3.75% over October, said Aon Hewitt.
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.