All scheme funding articles – Page 2
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NewsWebinar: Pension Protection Fund 2022 Purple Book
The Pension Protection Fund will be publishing its annual analysis of the defined benefit sector on December 1.
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NewsLGPS employer contributions could rise despite improved funding
The Local Government Pension Scheme Scheme Advisory Board has noted the possibility of employer contribution rates rising, despite the expectation that many local authority schemes will have improved their funding positions — or even moved into surplus — as of March 31 2022.
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NewsSainsbury’s sets up £500mn loan to DB scheme for LDI crisis
Sainsbury’s has set up a £500mn loan facility to ensure its defined benefit scheme has enough liquidity to face collateral calls on its liability-driven investments.
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NewsTPR: Improved funding steering DB sector towards buyout
Around nine in 10 defined benefit trustees and employers now have a long-term objective in place, with positioning for a buyout more common than reaching a position of low dependency.
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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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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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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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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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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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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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NewsPPF to slash levy by more than £400mn in two years
The Pension Protection Fund is to slash its levy by more than £400mn by 2023-24, after a review found strong investment performance and a reduced risk of claims.
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NewsUnion attacks ‘unacceptable’ hike to Railways pension contributions
The National Union of Rail, Maritime and Transport Workers has warned that changes to the Railways Pension Scheme’s investment strategy, following a Pensions Regulator intervention, would result in an “unaffordable and indeed unacceptable” 7.6 per cent hike in members’ contributions.
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NewsUK bond yields continue to surge after chancellor’s ‘mini-Budget’
On the go: The value of UK Treasuries has fallen sharply after the fiscal statement on September 23, which announced a raft of unfunded tax cuts for businesses and high earners as well as homebuyers.
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NewsFirst-half bulk annuity volumes surge 50% against 2021
On the go: The pensions risk transfer market is up 50 per cent in the first half of 2022 compared with last year’s H1 figure, with £12bn in buy-ins and buyouts making for the third-largest H1 figure on record, according to analysis from LCP.
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NewsDB members could lose £25,000 to inflation increase caps
On the go: Members could stand to lose out on £1,200 a year due to caps on inflationary increases in defined benefit schemes, amounting to £25,000 of missed income over a lifetime, according to analysis from XPS Pensions Group.
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NewsRising gilt yields push PPF 7800 index aggregate surplus up 23%
On the go: The aggregate surplus of defined benefit pension schemes eligible for entry into the Pension Protection Fund leapt by almost a quarter in August, fuelled by increasing gilt yields and declining liabilities.
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NewsBAE Systems Pension Scheme reaches full funding
On the go: The BAE Systems Pension Scheme is fully funded following its latest actuarial valuation, according to a July update.
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NewsDerbyshire among funds at risk in £138mn solar farm scandal
The Derbyshire Pension Fund is among a number of public sector institutions with members’ money invested in a scandal-hit council investment project that has seen £138mn in public money go missing.