June 2019

04Jun

UK. Minister’s ‘pension for homes’ idea sparks government row

James Brokenshire said people who had saved into occupational pensions should be free to spend the proceeds when they wished on their first home. He said using it on a deposit could be a "genuine route" to home ownership. But it is understood the Department of Work and Pensions (DWP) has complained to No 10 about the proposal. A departmental source said it could not support the idea "because the evidence shows it will be risky and does not...

June 4, 2019
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03Jun

UK. Plea over Scottish Parliament’s fossil fuel pensions

Holyrood politicians are campaigning for their pensions to come from "ethical investments" rather than fossil fuel companies. The MSP pension fund currently invests at least £1m in oil, gas and coal companies, according to Friends and Earth Scotland. Now a cross-party group of MSPs have spoken out on the issue ahead of a meeting of their pension fund trustees. A parliament spokesman said they were reviewing their investment strategy. The move comes after First Minister Nicola Sturgeon declared a...

June 3, 2019
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May 2019

31May

UK. ‘Ageing time bomb’ needs new funding model Somerset council says

The Panorama documentary showed how authorities were struggling to fund elderly care amid an ageing population and increasing demand on services. David Fothergill said: "The time bomb is ticking and it's getting louder." The government said it wanted "everyone to have access to the care they need". The Department of Health and Social Care added it had "provided local authorities with access to up to £3.6 billion more dedicated funding for adult social care this year and up to...

May 31, 2019
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29May

UK. Unnecessary disability reassessments for disabled pensioners to be phased out

Work and Pensions Secretary of State Amber Rudd announced in March that people receiving PIP who have reached State Pension age will no longer have their awards regularly reviewed, instead moving to a light touch review at 10 years. Nearly 290,000 people of State Pension age are in receipt of PIP. From Friday, new claimants to PIP whose review would have been scheduled after they had reached State Pension age will receive an ongoing award with a light touch...

May 29, 2019
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28May

UK: Pensions Ombudsman Finds Pensions Trustees Personally Liable For Investment Losses

The Pensions Ombudsman has found two trustees personally liable to account for over £2.4 million of investment losses to a pension scheme. With exoneration clauses common in trust deed and rules, it is rare for trustees to be personally liable for breaches of duty. The facts are also unusual with the Scheme invested in high risk investments and it is unlikely to be a situation replicated often (if at all), but this case is a reminder that trustees cannot...

May 28, 2019
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24May

Icelandic pension funds and Bristish fund buy geothermal firm HS Orka

As reported this morning in Iceland, Jardvarmur slhf, a company jointly owned by 14 pension funds in Iceland, has decided to exercise its pre-emptive right in the only private power company in Iceland, HS Orka for the 54 per cent stake sold by Canadian energy company Innergex in HS Orka. In the sale process, a fund by Australian investment bank Macquarie put in the winning offer in Magma Energy Sweden A.B, which holds the the 54 stake in HS...

May 24, 2019
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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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