More defined benefit news – Page 23
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NewsMPs to question DB schemes’ use of LDI in new inquiry
On the go: The Work and Pensions Committee has launched an inquiry into the regulation and governance of defined benefit schemes with liability-driven investments.
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NewsTfL sets out ‘significantly less generous’ pension reform options
Transport for London has published two concepts for the future design of its pension arrangements, while also asking that the government either reclassify past service assets and liabilities under a public sector arrangement or provide a Crown guarantee.
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NewsAcademics back strike action over USS ‘pension cuts’
The Universities and College Union has secured a mandate to strike in 150 universities over member benefit cuts in the Universities Superannuation Scheme.
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NewsUSS weighs up costs and benefits of outsourcing investments
Despite hiring an external asset manager to run its climate transition index earlier this year, the £90.8bn Universities Superannuation Scheme is keen to cut investment management costs by developing its in-house investment capabilities.
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NewsJarvis Group scheme agrees full buy-in
On the go: The circa £13mn Jarvis Group Limited Pension Plan has agreed a full buy-in with Legal & General, securing the benefits of more than 90 members, including 72 retirees.
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NewsEssex launches global equity sustainable transition fund
On the go: The circa £9.3bn Essex County Council Pension Fund has partnered with UBS Asset Management and Hymans Robertson to launch the UBS Life Global Equity Sustainable Transition Fund.
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NewsBoE acted to prevent a gilt market ‘fire sale’, MPs told
The Bank of England had no choice but to intervene in the gilt markets, having received signals from pension funds that a “fire sale” may occur, BoE deputy governor for financial stability Sir Jon Cunliffe has told MPs.
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NewsFirefighters receive £3,750 govt payout over Sargeant ‘distress’
On the go: Nearly 9,000 firefighters will receive £3,750 from the government to compensate for anxiety and stress caused by a “government pensions debacle”.
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NewsMini-Budget blows £11bn hole in BT Pension Scheme
On the go: The £46.9bn BT Pension Scheme sustained aa £11bn hit to its assets following the government’s September “mini” Budget, before the Bank of England intervened to stabilise gilt markets.
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NewsTruss commits to pensions triple lock as inflation hits 10.1%
Prime minister Liz Truss has confirmed that the triple lock will be maintained, even as September’s figures showed inflation rising to 10.1 per cent.
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NewsBulk annuity transactions reach £12bn in first half of 2022
On the go: The total volume of buy-in and buyout transactions reached £12bn in the first half of 2022, according to research from Hymans Robertson.
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NewsLDI funds prepared for ‘much larger increases in yields than before’
Liability-driven investment funds have built sufficient capital to shield themselves from the impact of further spikes in gilt yields, the Bank of England has said.
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NewsDWP concedes to industry demands on dashboards lead time
The Department for Work and Pensions has recognised its proposed 90 days pensions dashboards lead time “creates challenges” for schemes and administrators, and will now give providers a six-month notice before the project goes live.
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NewsGilt yields drop while schemes plan for life after mini-Budget U-turn
Pension schemes are reviewing their asset allocations and resilience to future market shocks, as gilt yields fell in response to the abandonment of most measures presented in the September “mini” Budget.
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NewsKwarteng out as LDI derivative losses set to hit £149bn
Market moves: Liz Truss sacks Kwasi Kwarteng, with Jeremy Hunt installed as chancellor; JPMorgan estimates market-to-market losses from liability-driven investment derivatives could hit $167bn (£149bn); and schemes rush to prepare as the Bank of England ends its bond-buying programme.
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NewsBoE demands ‘appropriate levels’ of market resilience
On the go: The Bank of England has called on market participants to learn lessons from the current volatility in gilt markets and has said that it is monitoring the behaviour of liability-driven investment managers, with its gilt-purchasing programme set to end on October 14.
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NewsExperts warn DWP rules could lead more schemes to LDI
With pension funds still dealing with the current market turmoil, experts point out the government’s proposed rules for defined benefit funding could force schemes into an even lower-risk environment, increasing the need for liability-driven investments.
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NewsColumbus’s egg and leverage in LDI
There is a story about hindsight that dates back to the 1500s. It involves Christopher Columbus and his discovery of the trade route to the West Indies.
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NewsClara-Pensions expects consolidator competition ‘within a year’
On the go: The commercial consolidator Clara-Pensions expects to see other offerings providing competition in the market “in a year’s time”, according to chief executive Simon True, despite the “unhelpful economic environment”.
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NewsTPR’s Counsell: DB schemes are not at risk of collapse
Defined benefit pension schemes were not on the verge of collapse before the Bank of England’s gilt market intervention, the Pensions Regulator’s chief executive Charles Counsell has said.