News

Employers forced to cut pay rises to pay for pension plans; Companies warned not to dismiss pay revolts; Axa asks staff to give up index-linked pensions; Pensions worry QE2 will raise liabilities; High price for overstating inflation

Automatic enrolment add-ons could more than double additional annual retirement savings by 2025, a report concludes.

Schemes conducting pension increase exchange exercises must provide personalised statements and a helpline to help members understand their choice, a consultant argues.

Overestimated inflation projections could be costing UK defined benefit scheme sponsors over £50bn in unnecessary funding commitments, a corporate adviser warns.

Russell Investments has expanded its advisory offering with the appointment of two additional directors to its consulting and advisory services team.

UK - UK pension funds are showing early signs of re-risking, according to panel members at a JP Morgan Transition Management (TM) press briefing in London yesterday.

SWITZERLAND - Swiss firm Lombard Odier Investment Managers plans to launch a new fundamentally-weighted developed sovereign debt fund after a Swiss pension fund agreed to invest CHF1bn ($1.1bn) in the strategy.

US - The $40bn Alaska Permanent Fund Corp., the sovereign wealth fund known for being among the first institutional investors in the US to use a risk-based asset allocation approach, has hired Jay Willoughby as its new chief investment officer.

AUSTRALIA - The merger between the A$2.4bn (US$2.5bn) StatewideSuper and the A$1.7bn Local Super will move to the next stage, beginning the due diligence process following approval in principle from the funds' major shareholders.

State Street has been forced to reimburse a client for a transition management trade after an internal investigation found the client had been double charged on fees.