All interest rates articles – Page 2
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NewsTriple lock, NHS and merging regulators on Liz Truss’s agenda
The new prime minister faces a host of economic problems, ranging from the cost of living crisis to the staffing crisis in the NHS as she enters Number 10, industry experts have said, with all eyes on the government’s forthcoming “fiscal event”.
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NewsCourt dismisses trustee’s Barber window arrears claim
The High Court has ruled that members of the CMG UK Pension Scheme are not entitled to payment of arrears that fell due more than six years ago, despite the trustee’s attempts to continue paying them.
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NewsRising rates pose challenges for closed DB schemes’ LDI portfolios
While interest rate and inflation hedges have helped many defined benefit schemes stabilise their funding positions, the current macroeconomic environment is creating challenges for some closed plans, which might not have the necessary collateral in place to meet high payments.
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NewsTPR: ‘Keep asking questions’ about investment strategies
On the go: The current economic malaise, and especially the impact on liability-driven investments now interest rates are rising, proves it is especially important that trustees continue to ask questions about their investment strategies, even if they seem “silly”, says Fred Berry, the Pensions Regulator’s lead investment consultant.
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NewsPPF urges trustees to plan for sponsor insolvency
On the go: The Pension Protection Fund is encouraging trustees to have a contingency plan in place for sponsor insolvency, as the PPF 7800 index decreased for the first time is six months.
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NewsGovt to consult on further LGPS McCloud regulations in 2023
On the go: The Department for Levelling Up, Housing and Communities is to consult on further regulations governing the application of the McCloud remedy to the Local Government Pension Scheme.
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NewsTaylor Wimpey suspends escrow payments
On the go: Home construction company Taylor Wimpey has suspended escrow payments to its defined benefit pension scheme due to its strong funding position.
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NewsExperts warn schemes of recession and inflation risks after BoE rate rise
The Bank of England has announced its highest rate hike in 27 years, lifting its base rate by 0.5 per cent to 1.75 per cent in a bid to control rising inflation, with warnings of an imminent recession creating fresh challenges for UK pension schemes.
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NewsPandemic damage mitigated as quarter of schemes are in surplus
More than a quarter (27 per cent) of defined benefit and hybrid schemes with tranche 15 valuations were in surplus on a technical provisions basis, despite the market shock of the Covid-19 pandemic, according to the Pensions Regulator’s latest scheme funding analysis.
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NewsInflation hits new 40-year high of 9.4%
On the go: The rate of inflation has risen to 9.4 per cent in the 12 months to June, as the governor of the Bank of England warns that interest rates could be increased by 0.5 per cent in the next decision meeting.
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NewsOpperman rebuffs Timms’ FAS criticism
On the go: Prior to his resignation, pensions minister Guy Opperman rejected Work and Pensions Committee chair Sir Stephen Timms’ criticisms over the Financial Assistance Scheme compensation cap.
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NewsAon and Mercer issue ‘urgent’ call to action over LDI strategies
Consultancies Aon and Mercer have urged pension schemes, trustees and sponsors to prepare to intervene to protect their schemes, as bond market volatility puts strain on liability-driven investment strategies.
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NewsHMRC clarifies tax treatment of GMP arrears
On the go: HM Revenue & Customs has set out the tax treatment for arrears and interest when equalising for guaranteed minimum pension, explaining the circumstances under which there is an obligation to deduct tax.
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NewsBank of England raises interest rates to 1.25%
On the go: The Bank of England has raised interest rates for the fifth time in a row to 1.25 per cent.
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PodcastsPodcast: Uncertainty around inflation leads to ‘casino pensions’
Podcast: High levels of volatility around inflation will force trustees to “take a bet” on the future, as it is very difficult — absent a crystal ball — to predict inflationary pressure and its impact on scheme liabilities, says Pension Playpen chief executive Steve Goddard. He is joined by Cardano managing director Emily Goodridge to discuss inflation, technology in pensions, and the future of environmental, social and governance disclosure.
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NewsElectricity pensioners launch campaign amid inflation fears
The Association of Electricity Supply Pensioners has launched a campaign to protect the benefits of more than 100,000 members of the Electricity Supply Pension Scheme, amid fears that pension increases that do not match inflation could amount to significant losses.
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NewsSchemes could bag £100bn in savings after bank base rate hike
The Bank of England's anticipated move to raise rates could fuel huge savings for defined benefit schemes, although the inflationary outlook has deteriorated as the cost of living crisis continues to bite.
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NewsTPR funding statement flags uncertainty impact for valuations
High levels of uncertainty surrounding inflation, interest rates, mortality, energy prices and economic growth will put additional pressure on trustees completing their tranche 17 valuations this year, according to the Pensions Regulator’s annual funding statement.
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NewsPLSA issues further clarification on HMRC’s GMP guidance
On the go: The Pensions and Lifetime Savings Association has posted a memo clarifying certain aspects of HM Revenue & Customs’ guidance on the tax treatment of guaranteed minimum pensions equalisation, looking specifically at the treatment of the interest element.
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NewsInflation hits 30-year high of 7%
On the go: UK inflation hit a new high of 7 per cent in March, as the cost of living crisis continues.