All Defined benefit articles – Page 27
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NewsLDI fund managers look to lower leverage in wake of market turmoil
Managers of liability-driven investments are likely to reduce the level of leverage used in their funds in the aftermath of the Bank of England’s intervention, investment consultants say.
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NewsUniversity employers stick to USS cuts despite strike threat
Universities Superannuation Scheme employers have rebuffed renewed calls by the University and College Union to restore benefit cuts in response to the scheme’s controversial 2020 valuation, arguing there is “no solid evidence” to make benefit changes before the 2023 valuation.
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NewsBoE expands measures to protect schemes from market turmoil
The Bank of England has announced additional measures to support pension funds through the current market turmoil, including an increase in the size of its gilt daily auctions and a temporary initiative to ease liquidity pressure on schemes holding liability-driven investments.
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NewsFirst half of 2022 sees record number of bulk annuity deals
On the go: The first half of this year witnessed 78 bulk annuity deals, a record for the period, which registered 19 more transactions than the first six months of 2021.
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NewsLDI: Could trustees be sued?
Market moves: A law firm speculates that trustees could be subject to legal action as a result of gilt market instability, the Association of Consulting Actuaries urges defined benefit schemes to review their hedging strategies, and a former pensions minister asks if liquidity pressures will undermine the government’s push for scheme infrastructure investment.
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NewsGovernment prolongs relaxation of NHS pension rules
The government will extend amendments to the NHS Pension Scheme designed at boosting health worker numbers, prolonging measures that were introduced in response to the coronavirus pandemic.
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PodcastsPodcast: TPR should not regulate LDI despite pensions crisis
Dalriada Trustees director David Fogarty and Cartwright director of investment consulting Sam Roberts discuss the causes to the recent market turmoil that precipitated the intervention by the Bank of England, what was done to stall it, and what the future holds.
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NewsSome LDI investments ‘worth zero’ without BoE intervention
The Bank of England has told MPs that defined benefit pension fund investments in some pooled liability-driven investment funds would have been rendered worthless without its intervention on September 28.
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NewsMPs question TPR role in LDI market turmoil
The Work and Pensions Committee has questioned the Pensions Regulator’s role in the market turmoil that led to the Bank of England’s intervention, asking if the watchdog should have “taken stronger action” earlier and what actions it was taking to monitor risks.
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NewsCould gilt market shock push schemes towards insurers over LDI?
The market shock prompted by the government’s “mini” Budget could see a shift away from liability-driven investment strategies and toward insurance deals, experts have suggested.
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NewsPension Protection Fund rules out LDI review
On the go: The Pension Protection Fund has no intention of reviewing its investment strategy and its use of liability-driven investments in response to recent market volatility.
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NewsEmployers face contribution calls to maintain schemes’ hedging ratios
The sponsoring employers of defined benefit pension schemes look set to be called on for advances of contributions or additional funding, as schemes seek to preserve their liability hedging and lock in their improved funding levels.
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NewsTPR called to regulate schemes’ LDI leverage levels
The Pensions Regulator should consider regulating levels of liability-driven investments leverage to guarantee that pensions schemes can withstand future market volatility, experts have warned.
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NewsBorder to Coast ready to vote on company leadership over ESG
The Border to Coast Pensions Partnership has warned it is prepared to vote on the future boardroom leaders over environmental, social and governance matters, as it publishes its net zero strategy.
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NewsLDI: L&G admits markets turmoil ‘caused challenges’ for clients
Market moves: Legal & General notes the problems posed for clients by the speed of recent rate increases, asset managers limit withdrawals from property funds, and soaring gilt yields supercharge defined benefit scheme funding levels.
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NewsProfessional trustee appointments jump 10%
On the go: The number of UK pension schemes to have appointed a professional trustee rose by a 10th in the year to July 2022, new research has found.
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NewsScottish Widows and Interactive Investor see green pension demand
ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, including a study from Scottish Widows suggesting green pensions are valuable for recruitment, and news that one in 10 workers have chosen a sustainable pension.
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NewsTPR: Schemes had right structures in place to face market crisis
The Pensions Regulator believes defined benefit schemes had “sensible waterfall measures in place” to face the collateral calls prompted by rising gilt yields and has advised struggling trustees to speak to their advisers.
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News18,000 teachers subject to ‘challenging’ McCloud choice
Some 18,000 teachers have been made retrospectively eligible for Local Government Pension Scheme benefits by the implementation of the McCloud remedy, presenting an “administratively challenging” task for both the Teachers’ Pension Scheme and LGPS-administering authorities, according to the Local Government Pensions Committee.
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OpinionSeven days in pensions
Seven days ago (September 23) we pondered a “mini” Budget, the day after the latest interest rate rise to 2.25 per cent.