US - Pittsburgh had the outlook on its debt revised to negative from stable by Standard & Poor's, which cited rising financial pressures tied to the city's pension system.
Pennsylvania's second-biggest city by population also faces "uncertainty regarding the potential takeover of the city's pension system by the state should the pension's funding levels fall below 50% on December 31," an analyst, John Sugden- Castillo, said today in a statement.
The pension system faces a $650m shortfall. Keeping up with expanding retirement obligations may consume 40% of Pittsburgh's annual budget for the next three decades, according to Mayor Luke Ravenstahl. A state takeover of the pension system may force him to raise taxes and cut services.
The ratings company also affirmed its BBB rating, two levels above speculative grade, on the city's general obligation bonds. The city has limited options for raising revenue, uses reserves to balance its 2011 budget, and has "above-average" debt levels, S&P said.
Willis Towers Watson's LifeSight is the first master trust to be granted authorisation by The Pensions Regulator (TPR).
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.