May 2019

22May

UK. More than a third of MPs back campaign for fossil-free pension

Parliamentary pension currently holds £11.7m of BP shares and almost £11m in Shell Large numbers of MPs have again called for their pensions to be made free of fossil fuel investments, ahead of an "historic" debate on the financial and ethical risks of pension investments in high carbon companies in Parliament this afternoon. More than a third of serving Westminster MPs today reiterated calls for the Parliamentary Contributory Pension Fund (PCPF) to disclose its investments in carbon-intensive industries, and...

May 22, 2019
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20May

UK. FCA investigates 30 pension advisers

The Financial Conduct Authority is currently investigating 30 unnamed individuals and firms for poor pension transfer advice and scams, according to Labour MP Nick Smith. The information was revealed by Economic secretary to the Treasury John Glen, who responded to a letter from the Blaenau Gwent MP, who asked for information on what action the regulator has taken against rogue advisers. Mr Glen also revealed that enforcement action has been taken against 15 businesses and individuals for "pensions misconduct"...

May 20, 2019
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17May

UK: Pension Scheme Investment – A New Era Of Increased Competition?

Recent intervention by the Competition and Markets Authority could lead to increased competition in the market for investment professionals who provide services to pension schemes – which should be a good thing for the employers supporting those schemes. Many occupational pension schemes use the services of investment consultants and / or fiduciary managers. Broadly, investment consultants advise pension scheme trustees on how best to invest scheme assets – and fiduciary managers make investment decisions on behalf of pension...

May 17, 2019
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16May

New ‘superfunds’ gear up to manage Britain’s deficit-ridden pensions

Britain’s company pension schemes, grappling with ageing former employees and low investment returns, may start to transfer their assets into new so-called superfunds in the coming weeks, according to people involved in the process. There are around 2 trillion pounds ($2.6 trillion) in more than 5,000 UK private defined benefit, or final salary pension schemes. Nearly two-thirds are in deficit, putting a burden on companies looking to strike merger deals or restructure debt. Although most companies have closed these...

May 16, 2019
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15May

UK. Life expectancy declining: KPMG

Latest research from KPMG debunks the assumption that life expectancy is increasing when in fact it has contracted for the fourth consecutive year. After analysing the mortality of UK retirees on defined benefit plans, the KPMG 2019 Pensions Accounting Survey found median life expectancy has fallen by 0.2 years for current pensioners and 0.1 years for future pensioners. A current pensioner aged 65 for example, is expected to survive a further 21.9 years on average. However, a future pensioner...

May 15, 2019
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15May

Childcare costs fuel gender pension gap

The gender pensions gap is being worsened by the cost of childcare as it causes 36 per cent of women to leave their job which in turn halts pension contributions. A report from not-for-profit pension provider The People’s Pension, published on May 13, found that after having children, nearly half of women (44 per cent) reduced their hours, more than a third (36 per cent) left work altogether and 15 per cent returned to work in a lower grade...

May 15, 2019
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14May

Collective Defined Contribution Schemes: A Fresh Alternative?

The government has given the green light to a new form of defined contribution pension scheme. At least, it is new to the UK. "Collective defined contribution" ("CDC") schemes are common in the Netherlands and Denmark but the idea of introducing this type of scheme into the UK has only relatively recently gained traction. The fact that the Royal Mail wants to put such a scheme in place for its 140,000-strong workforce has provided the impetus...

May 14, 2019
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13May

UK. Number of civil servants on £100,000 pensions trebles

The number of public servants retiring with pensions of more than £100,000 a year has trebled since 2010 as executives in final-salary schemes finish work. NHS, civil service and teaching pension schemes paid six-figure incomes to 375 people last year, up from 117 in 2010, according to data obtained under the Freedom of Information Act. More than 115,000 retired public servants are receiving more than the average salary of people in work, now £28,600 a year, up from 78,000...

May 13, 2019
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09May

Stagecoach takes legal action against UK after rail bids rejected

Stagecoach Group said on Wednesday it had begun legal action against Britain’s Department for Transport after the company’s bid to continue operating a rail route was rejected due to concerns over pensions. The Department for Transport has asked rail franchise bidders to take on the full long-term funding risk of parts of the Railways Pension Scheme and disqualified Stagecoach’s bid for the East Midlands franchise because it did not comply with that request. It also disqualified the company from...

May 9, 2019
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08May

UK. Ageing population ‘an opportunity, not a problem’ say MPs

The “problem” of the UK’s ageing population should be recast as one of the most “promising opportunities of the 21st century”, according to MPs at the centre of a new government strategy on longevity. Launched on Tuesday, the All-Party Parliamentary Group for Longevity will develop a radical strategy setting out how the working population can stay fit and functional for longer, stressing the business opportunities presented by Britain’s changing demography. “We need to change how we see ageing —...

May 8, 2019
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