November 2017

10Nov

UK. The pension scheme de-risking market: how to find value

The dynamics of the pension de-risking market may be summarised as market conditions mixed with supply-and-demand forces, with an overlay of regulation. This melting pot leads to a cyclical market with different structures, offering more value for money than others at a particular time. Since I started working in this market as an insurer about 20 years ago, I’ve observed many such cycles, and now as a de-risking adviser to pension schemes I help my clients seek the best available...

November 10, 2017
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10Nov

UK Gov’t outlines cold calling ban timeline

Responding to a question from a fellow Conservative MP, Stephen Barclay confirmed that the government will then legislate on a ban, which will include texts and emails, as soon as parliamentary time allows. Despite welcoming the announcement as “a step in the right direction”, James Walsh of the Pensions and Lifetime Savings Association (PLSA) said: “We are still a long way from a cold calling ban actually taking effect”. Walsh, who is the PLSA’s policy lead for engagement, EU and regulation,...

November 10, 2017
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09Nov

Prudential, PIC Reach $1.2 Billion Longevity Reinsurance Agreement

Prudential Retirement, a unit of Prudential Financial, Inc. (NYSE:PRU), and Pension Insurance Corporation (PIC), have entered into their fifth longevity reinsurance transaction since 2015. In the agreement, The Prudential Insurance Company of America assumes the longevity risk for $1.2 billion (about £900 million) in pension liabilities, covering approximately 4,000 pensioners across four pension schemes. The transaction highlights the rebounding demand for pension de-risking solutions in the U.K., and the desire of many U.K. pension insurers to manage their risks and...

November 9, 2017
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03Nov

Yield-Starved U.K. Pension Funds Jump on Private Debt Bandwagon

A newly created credit fund carved out jointly by two U.K. local government pension authorities plans to earmark almost half of its assets for investments in direct lending. The Local Pensions Partnership, formed by pooling the funds of local government retirement funds in London and Lancashire County, will plow approximately 45 percent of its 1.3 billion pound ($1.7 billion) capital into direct lending, according to a person familiar with the matter, who is not authorized to speak publicly and asked...

November 3, 2017
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03Nov

British Insurer Legal & General to Launch Japan Operation-CEO

British’s third-largest insurer, Legal & General (LGEN.L), is launching an operation in Japan to offer company pension scheme insurance and investment management, Chief Executive Nigel Wilson said on Thursday. The move by L&G comes as European peers such as Allianz (ALVG.DE) and Aviva (AV.L) have scaled back from other Asian markets such as Taiwan. The $21 billion (16.09 billion pounds) company, which manages 1 trillion pounds in assets in its fund arm, has sold a number of its European businesses in...

November 3, 2017
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02Nov

UK. Cost of living pressures affect people on welfare more than anyone

The release of the latest cost of living indexes shows that for all types of households the cost of living continues to grow well below long-term averages. But in September the impact of electricity price rises most affected aged pensioner and other government beneficiary households. For these households, who have mostly missed out on the benefits of falling interest rates, it means that they remain the most affected by cost of living pressures. Unlike the consumer price index, which provides...

November 2, 2017
News, OP Ed, Slider
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October 2017

27Oct

UK pension schemes told to give more detail on investments, costs

UK pension schemes should give more information to members about their investments and how much asset managers are charging them to run members’ money, the government said on Thursday. The move is the latest attempt by the authorities to increase transparency in the market for pensions and investments. The Department of Work and Pensions (DWP) said a failure to provide the information could see occupational workplace pension scheme trustees fined up to 50,000 pounds from April, 2018, under the proposed...

October 27, 2017
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26Oct

UK. Mediator picked to resolve Royal Mail pensions row with union

Royal Mail and the Communications Workers Union have appointed Lynette Harris of Britain’s Central Arbitration Committee to mediate in a row over plans to replace the company’s defined benefit pension scheme. The talks, which will cover pay, pensions and other issues, will run for seven weeks and could be extended in order to reach a deal, Royal Mail said in a statement on Wednesday.  The CWU has been at odds with Royal Mail since April over its plans to save billions...

October 26, 2017
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26Oct

UK. Fewer pensioners ‘splurging irresponsibly’

Critics said the new pension freedom rules, which have seen £14bn ($18.4bn, €15.7bn) withdrawn from pensions, were irresponsible and would encourage profligacy. Instead, money was mostly put in banks and average withdrawal per person hit a new low (£8,030) in 3Q17. Online investment platform AJ Bell suggests the FCA data shows “people aren’t on the whole splurging irresponsibly”, even if 40,000 more people chose to access their retirement pot flexibly in 3Q17 versus the same period in 2016. Engagement gap Tom Selby,...

October 26, 2017
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25Oct

UK. Peers demand ban on pensions cold-calling after inflicting embarrassing defeat on the Government

Peers last night demanded a ban on pensioner cold-calling as the House of Lords inflicted an embarrassing defeat on the Government in the Lords. The House of Lords backed a cross-party amendment calling for unsolicited calls to be outlawed by 253 votes to 205. The Government originally pledged to ban pensioner cold calling in September last year but has since ruled out any legislation until 2020. However, a group of cross-party peers warned that the delay would see millions more people...

October 25, 2017
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