October 2024
14Oct

Biggest US public pension fund Calpers invests in UK’s Octopus Energy

The largest public pension scheme in the US has invested in Octopus Energy, highlighting international interest in the fast-growing UK power company. Calpers, which oversees the pensions of public workers in California and has about $500bn of assets under management, invested in the private company this year as part of a push into climate-related assets, Calpers confirmed in response to a query from the Financial Times. It made its investment in May alongside Australian pension fund Aware Super. Together the two...

October 14, 2024
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11Oct

UK. Why even at 20 you should care about pension changes

There is growing speculation that the way pensions are taxed could be changed in the Budget. Chancellor Rachel Reeves says she needs to find £22bn and some experts say she could change the system on workplace or private pensions to find some of this money. This is separate from another debate about the state pension. There are a number of options which could affect workers getting their first job, those already working, all the way up to those in retirement. This...

October 11, 2024
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10Oct

UK. People have less than six months to make a vital pension change

People have less than six months left to fill gaps in their national insurance (NI) record from 2006 to maximise their state pension. More than 10,000 payments worth £12.5 million have already been made through a new digital service to boost people’s state pensions since it launched in April, HM Revenue & Customs (HMRC) has revealed. The service lets people check for gaps in their NI record, calculate if making a payment would increase their state pension, and then make...

October 10, 2024
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10Oct

Pension funds biggest investors in UK’s £10bn social impact investment market

Pension funds are the largest investors in the UK’s social impact investment market, according to the latest annual market sizing report from Better Society Capital (BSC). The report reveals that the sector grew to £10bn (€11.9bn) last year, marking a 7% increase compared to 2022. In 2023, investment by pension funds represented 21% of the country’s total social impact investment market, with most of their funds being directed towards social and affordable housing, according to BSC. Endowments and charities were the second biggest...

October 10, 2024
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09Oct

UK. DWP suggests clearer communication and tech to boost pension engagement

There is a need for clearer communication, improved information and greater use of technology to boost public engagement with private pensions in the UK, according to the Department for Work and Pensions (DWP). The report, titled “Lessons on Pensions Engagement”, explores how to encourage greater participation in private pension schemes. It finds that “Pension engagement is a key departmental and governmental priority, but evidence shows engagement is low.” The analysis defines engagement in three ways: cognitive, emotional, and behavioural. It highlights...

October 9, 2024
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08Oct

Regulators increase scrutiny on funded reinsurance amid pension de-risking surge

The growing use of innovative “funded” or “asset-intensive” reinsurance structures by life insurance companies has attracted regulatory attention, particularly in light of the expanding pension de-risking market. These transactions, which involve transferring corporate pension scheme liabilities to life insurers, have led to an increase in reinsurance activity where both investment and longevity risks are passed to reinsurers. In its latest report, Hogan Lovells notes that while regulators recognize the strategic role of reinsurance in managing risk and capital, the rising volume of...

October 8, 2024
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07Oct

UK. Royal Mail launches collective defined contribution pension plan

Royal Mail has launched a collective defined contribution (CDC) pension plan to provide its more than 100,000 employees with a cash lump sum and an income in retirement. Along with the Communications Workers Union (CWU) and Unite CMA, the employer designed and implemented a pension arrangement for its workforce that was affordable for itself and its employees. Every employee with at least one year of service is eligible to join, with the majority joining automatically. The plan pools members’ contributions and provides staff...

October 7, 2024
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07Oct

UK. Four New Firms Join the Pension Dashboard Operators Coalition to Reconnect People With Their Savings

The UK Pensions Dashboard Programme (PDP), a project aiming to create the infrastructure required to help over 16 million people plan for retirement and connect with lost pension pots all in one place, has been hit with delay after delay. In an effort to help launch commercial pensions dashboards for consumers more quickly, four new firms have joined the Pension Dashboard Operators Coalition, the industry coalition of potential operators of commercial pensions dashboards. Fidelity International, Mercer, Penny and Pension Lab become the latest firms to join the...

October 7, 2024
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04Oct

UK. Frozen state pensions: thousands of expats receive just £3,000 a year

Thousands of retired Britons living abroad receive just £3,000 on average each year from a “frozen state pension” - £7,000 less than retirees living in the UK - according to new analysis. While British pensioners that move abroad still receive a UK state pension, only some of them benefit from the triple lock. This uprates the state pension each year in line with earnings, inflation or 2.5%, whichever is higher. The new full state pension is likely to increase by more than £400 next April,...

October 4, 2024
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03Oct

UK. FCA: ‘We’ve raised the bar, we never expected all funds to get SDR label’

There is a “healthy pipeline” of funds applying for SDR investment labels, in line with where the regulator expected the market to be at this stage, the Financial Conduct Authority has said. Alicia Kedzierski, head of sustainable finance at the FCA, told delegates at the UKSIF Good Money Week conference 10 labels had been awarded as of yesterday (October 2) and many more were in the pipeline. Though she could not say how many labels the regulator expects to authorise before...

October 3, 2024
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