August 2023
18Aug

Prime Minister Says He’s Sticking to UK ‘Triple Lock’ Pensions Guarantee

Prime Minister Rishi Sunak said he’s committed to raising the UK state pension in line with the highest of inflation, wages or 2.5%, even though the longstanding “triple lock” policy is proving increasingly expensive. “Of course the government is committed to its policy on the triple lock,” Sunak told ITV on Wednesday. The most recent data on inflation — prices gained 6.8% in July — and for wages, which rose 7.8% in the three months through June, suggest that keeping the...

August 18, 2023
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09Aug

Por “High court: member ‘interests’ include future service benefits”

The High Court has ruled that a scheme rule restricting amendments that will affect members’ ‘interests’ applies to future service benefits, as well as benefits already accrued: BBC v BBC Pension Trust Limited. The amendment power in the BBC Pension Scheme is subject to a restriction that no alteration may ‘take effect as regards the Active Members whose interests are certified by the Actuary to be affected thereby’ unless certain conditions are complied with (designed to ensure that the relevant...

August 9, 2023
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01Aug

BBC cannot cut future pension accruals, U.K. High Court rules

The BBC cannot modify its defined benefit fund to cut future benefits for participants, the U.K.'s High Court ruled July 28. The BBC Pension Scheme, London, sponsored by the British Broadcasting Corp., had £19.8 billion ($25.4 billion) in assets as of March 31, 2022, the latest available figure. It has four levels of benefit structures. In December 2020, the pension fund completed a £3 billion longevity swap with Zurich and Canada Life Reinsurance to provide more certainty over future funding costs....

August 1, 2023
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July 2023
28Jul

UK. pension funds, consultants rely on flawed climate research – report

Pension funds and their investment consultants are depending on flawed research that lowballs the financial risk of climate change, according to a report released Thursday by Carbon Tracker. A study done for the financial think tank by University of London research fellow Steve Keen places much of the blame on climate economists for perpetuating "scientifically false assumptions," according to the study report, Loading the Dice against Pensions. Relying on flawed research leads to a disconnect between current investment decisions that assume...

July 28, 2023
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26Jul

UK pension funds must broaden investments, new regulator warns

UK pension fund trustees must consider increasing the range of their investments, including in start-ups or other illiquid assets, or face “robust” intervention, the British regulator has warned. Nausicaa Delfas, newly appointed chief executive of The Pensions Regulator, added that it was important for trustees of defined contribution plans to have the expertise to assess more complex assets — and advised that, if they did not, they should look to consolidate or even wind up their schemes. “Trustees have a duty...

July 26, 2023
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24Jul

UK. Insurance and pensions investment changes are positive steps

The refresh of the Solvency II rules will make certain assets more attractive to insurers. This includes infrastructure assets in their construction phase and higher risk assets common in “greenfield” projects that typically bear high technological and development risks. The research outlines the opportunities and potential implementation challenges of broadening the matching adjustment (MA) asset eligibility criteria. Firms will need to focus on key aspects of risk management to protect policyholder security, such as maintenance of the matching between asset...

July 24, 2023
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23Jul

Providing security, building sustainable futures

By Pension Protection Fund  Our purpose is to protect the future of millions of people throughout the UK who belong to defined benefit (DB) pension schemes - 9.6 million as at 31 march 2022. When these schemes fail we’re ready to help. We do this by paying our members, charging a levy and investing for the long term. Read book “here”

July 23, 2023
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23Jul

Defined benefit pensions with Liability Driven Investments

By Work and Pensions Committee The economic uncertainty experienced in the UK in September 2022 brought to the fore risks associated with the use of Liability Driven Investment (LDI) strategies by pension schemes. LDI strategies aim to reduce volatility in scheme funding levels by investing in assets whose value moves in the same direction as that of the scheme’s liabilities. Leverage allows schemes to do this in a capital efficient way, freeing up capital that they can invest in ways...

July 23, 2023
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23Jul

The pensions regulator’s annual report and accounts 2022-2023

By The Pensions Regulator The Pensions Regulator (TPR) is the UK regulator of workplace pension schemes. We make sure that employers put their staff into a pension scheme and pay money into it. We also make sure that workplace pension schemes are run properly so that people can save safely for their later years. Read book “here”

July 23, 2023
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21Jul

Navigating pension options for gig economy workers

Industry experts unravel the common challenges and potential for gig workers in pension planning. The first question is, how much should you save? The gig economy has been growing steadily in the UK, bringing flexible work arrangements to millions of individuals. However, with this newfound flexibility comes the responsibility of planning for a secure financial future, including retirement. Workers in the gig economy often face unique challenges when it comes to pension planning. Unlike traditional employees, they typically lack access to...

July 21, 2023
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