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Pension Funds Insider

Pension Funds Insider brings the latest pensions news and industry insights; from investment and governance updates to new mandate appointments and pensions regulatory information.

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Risk Management

Why Time is so Important for Our Economic Health

Friday, March 22, 2024

This article explains how the nature of money in an economy dramatically affects the time preference of both individuals and companies, which has huge implications for that country’s economic performance and health.

New entrants mean new opportunities

Thursday, March 21, 2024

With an ever-changing landscape in the bulk annuity market, staying abreast of new opportunities is crucial. One such opportunity that has garnered attention in recent times is the emergence of new players in the bulk annuity market.

Governments and central banks are destroying the value of your money

Thursday, February 22, 2024

It is time we look at how the value of money is being destroyed, why it is happening, and what you can do about it.

Change is afoot in the bulk annuity market

Friday, January 26, 2024

Following M&G’s (re)entry into the market in September 2023, announcing a £330m deal for their own scheme, the M&G pension scheme, commentators are predicting that there will be further new entrants into the market in 2024, and possibly some consolidation of existing insurers too.

Is this the dawn of a new era in pension scheme de-risking?

Thursday, November 23, 2023

The last few months have seen non-insurance de-risking transactions get over the line. In August the second capital backed journey transaction was completed on a sub £100m DB scheme, followed by the recent announcement that Clara had completed a £590m transaction with the Sears Retail Pension Scheme securing the benefits of c. 9,600 members.

The AI Revolution: How it could potentially transform the UK Defined Benefit Pensions landscape

Thursday, November 16, 2023

Artificial intelligence (AI) could be on the cusp of transforming the defined benefit (DB) pension sector in the UK; an area traditionally somewhat slow in embracing technological advancements.

Post buy-in for bulk annuities

Thursday, October 5, 2023

Unless you’ve been in hiding, it won’t have escaped you that the demand for bulk annuities has skyrocketed over the past year, primarily due to the increase in gilt yields and an increased willingness for sponsors to fund DB scheme deficits.

Seven key lessons for schemes thinking that transacting with an insurer is the solution

Tuesday, September 5, 2023

ZEDRA Governance Client Director Alan Greenlees considers the crucial factors trustees should consider when contemplating buy-out for their schemes.

Small Scheme Buy-ins and Pensions Consolidation

Thursday, August 3, 2023

Mark Foster comments on how small pension schemes can be better prepared for a potential insurance transaction

Mansion House Reforms

Friday, July 28, 2023

Sam Roberts comments on the Chancellor's recent Mansion House speech

How to get data ready

Friday, June 16, 2023

The market for buy-in/buy-out has grown exponentially post the LDI crisis of last year with many schemes finding themselves in a position of funding they couldn’t have predicted. This has provided them with a much earlier opportunity to buy-out, but their data could be holding them back.

Illiquid assets – a blocker to buyout?

Thursday, June 8, 2023

With recent rapid increases in interest rates and the positive impact that has had on most DB pension schemes’ funding levels, many find themselves in a funding position to afford buy-out.

A New Era for LDI

Friday, May 12, 2023

In less than a year the world of LDI has changed dramatically.

Understanding your de-risking options

Thursday, April 6, 2023

After a tumultuous three years in financial markets, Adam Davis discusses endgame options open to scheme trustees, and the further implications that bear consideration.

Data Cleansing

Tuesday, July 5, 2022

Getting ‘transaction ready’ – you snooze you lose!!

Solvency II reform: More clarity for bulk annuity insurers

Tuesday, June 28, 2022

In our March blog, we commented on the first glimpse of the UK Government’s proposed reforms to the “Solvency II” regulations that set out how much capital UK insurers are required to hold, which were outlined in a speech by John Glen MP, the Economic Secretary to the Treasury. On 28 April, HM Treasury published a consultation paper providing more detail on the proposed reforms.

Buy-out and risk transfer – a case study by Chris Mason, Senior Consultant & Actuary at Quantum Advisory

Monday, June 20, 2022

Helping Trustees to navigate the challenges of a buyout for a small scheme

Solvency II reform – Seismic Shift or Gentle Transformation?

Monday, March 7, 2022

It has been known for some time that the UK Government and the financial services regulatory body, the Prudential Regulation Authority (PRA), have concerns with “Solvency II”, the current rules that set out how much capital UK insurers are required to hold.

Getting to buyout – the importance of using the best partners

Thursday, January 20, 2022

For many small schemes who do not have access to the same depth of resources as their bigger counterparts, getting to buyout can seem like a moonshot. A seemingly impossible target that is too far away, too expensive, and too difficult to attempt. Even the prospect of insurance and all that it involves can be overwhelming.

Pensions risk settlement in 2021: A year in review

Wednesday, January 19, 2022

Make your first steps now, de-risk before transacting.

“Funding - are you missing an opportunity?”

Wednesday, August 25, 2021

In DB pensions, we know that opportunities will come but we also know that time is running out as schemes move towards their end-game.

Setting your pension strategy – now is the time

Friday, June 18, 2021

A trustee’s ultimate responsibility is to ensure that benefits are paid in full up to and including the final payment to the very last member. The challenge is how to deliver on something that is so far away.

Why and how small DB pension schemes should insure

Tuesday, June 15, 2021

Bulk annuity insurance might seem like an obvious objective for a small pension scheme but what are the specific factors behind that? Let’s consider a couple.

Weathering the Coronavirus storm

Tuesday, March 10, 2020

China has dominated the front pages over recent years – a slowing economy, trade disputes and now viruses.

Protecting your members against scams

Tuesday, November 26, 2019

Over 50% of members don't think they would fall victim to a scam, but who can protect those that will?

Three ways to manage the impact of cash flows on DB pension schemes

Monday, May 13, 2019

Simon Hubbard takes us through the key points to consider when monitoring and managing a negative cashflow position.

Leverage, risk, and investment performance at large pension funds

Monday, March 11, 2019

Alex Beath reveals the findings of a study in to the use of leverage and how it contributes to performance and risk.

Where there’s blame, there’s often no claim

Wednesday, October 10, 2018

When a pension scheme changes administrator, one universal truth applies: data issues and historical errors will be uncovered.

Integrating climate risks with your scenario planning

Wednesday, September 26, 2018

A new perspective on incorporating climate-related risks and opportunities in scenario analysis for strategic investment decision-making

Should trustees think more like corporates to get what they need?

Friday, September 14, 2018

To do the best for members, Karein Davie asks if there are other tips that can be taken from the way that a corporate operates?

A new solution to closing the income gap

Friday, August 31, 2018

UK defined benefit pension schemes are rapidly moving into cash flow negative territory, so the impending reality of fulfilling pension promises should be at the top of trustees’ agendas.

It’s time for a shift in perspective and look at assets in a new light – do they generate income?

Combating Pension Scams

Tuesday, July 3, 2018

Ian Neale addresses the changing nature of pension scams and how the industry plans to tackle them.

The deadline has passed

Tuesday, May 22, 2018

Are trustees compliant?

Clearer, quicker, tougher

Monday, May 21, 2018

Clearer, quicker, tougher - why TPR's new mantra matters to you

PPF Levy – Do you know the score?

Thursday, April 12, 2018

Ahead of the PPF levy deadline Robert Palmer explains how checking your data is correct could save more than just money.

Cyber challenges and the 21st century trustee

Wednesday, March 21, 2018

For all the benefits that technology has given rise to, it poses just as many risks. In the 21st century, personal data is an increasingly valuable commodity, with pension schemes, by their very nature, holding an enormous amount of it. While technology has enabled scheme administration to be automated and to be shared quickly, it has also brought with it many risks that cannot be ignored.

Security and how to get it

Wednesday, January 31, 2018

In PTL’s recent risk survey we noticed a sharp spike in concern around the strength of DB sponsor covenants: jumping from 14% in July to 24% in October. This article looks at what can be done about this.

Contingency plan

Tuesday, May 1, 2018

Cash will always be king but contingent assets can be a workable compromise

MMC UK announces largest longevity risk transfer for UK pension fund for three years

Thursday, September 21, 2017

Marsh & McLennan Companies UK Pensions Fund(MMC) has announced the largest longevity risk for a UK pension fund since 2014.

Plumbing industry pension scheme secures £560m buy-in

Thursday, September 14, 2017

The trustee of the Plumbing & Mechanical Services (UK) Industry Pension Scheme has entered a £560million buy-in with Legal & General, covering its pensioner members.

SSE to deliver landmark £1.2bn longevity risk project

Monday, August 21, 2017

FTSE 100 energy company, SSE PLC, has worked with two of the Defined Benefit (DB) pension schemes it sponsors, to deliver a landmark project that will hedge £1.2bn of longevity risk.

Cyber risk at forefront of pension scheme concerns

Friday, August 4, 2017

Risks posed by cyber security and data protection are high on the list of pension scheme's concerns, according national audit, tax and advisory firm Crowe Clark Whitehill.

Pension schemes take 'risk off the table'

Friday, June 9, 2017

A survey from BMO Global Asset Management found that pension schemes prioritised de-risking in the first quarter of 2017.

Over-55s concerned with market volatility over politics

Thursday, May 18, 2017

Brexit and Trump are low down the list of concerns for the over-55s, despite the fact they are concerned about market volatility and low interest rates in relation to their pension schemes.

Solving the corporate pensions conundrum

Wednesday, March 29, 2017

John Towner from Legal & General speaks to The Telegraph's Business Reporter about the challenges facing defined benefit pension schemes and the options for companies and trustees

Royal Mail pension scheme consultation ends

Friday, March 17, 2017

A member consultation on the future of the Royal Mail pension scheme closed on 10 March, after a three-month consultation period.

Prudential and Rothesay Life in £960 million reinsurance agreement

Friday, March 17, 2017

Prudential Retirement and Rothesay Life PLC have announced a new deal for pension liabilities covering around 22,500 pensioners.

Fertile terrain for pension scheme de-risking

Wednesday, March 15, 2017

Costas Yiasoumi expects a bumper year for bulk annuity de-risking and says preparation can help schemes achieve their risk management objectives

2016 in reflection: solvency, sovereignty and solutions.

Wednesday, March 15, 2017

Frankie Borrell reviews developments in the pension risk transfer market throughout 2016.

Lifetime ISA is risky, says PTL

Friday, February 3, 2017

The Government is overlooking risks to its new Lifetime ISA, according to a leading independent trustee and governance service provider.

Brexit leading to pension schemes transferring overseas

Thursday, January 12, 2017

Increasing numbers of UK final salary pension schemes are being transferred into overseas schemes, in anticipation of the triggering of Article 50.

One million DB pension risks transferred to insurers in 'quiet revolution'

Thursday, December 15, 2016

UK company pension schemes have transferred the defined benefit (DB) pension risks of more than one million people to insurers, according to research by pension consultants LCP.

European pensions plans warn of post-Brexit risk

Friday, December 2, 2016

European pension plans are overwhelmingly negative about the impact of Britain's decision to leave the European Union, according to new report.

Pension scheme inflation hedging increased

Monday, November 21, 2016

Inflation hedging by pension schemes increased by 11% in the third quarter of 2016, according to BMO Global Asset Management's latest survey.

HSBC adopts new climate change risk fund

Thursday, November 10, 2016

Legal & General Investment Management (LGIM) has launched a new fund that addresses investment risks associated with climate change.

UK pension deficits reach an all-time high

Friday, September 16, 2016

Research shows that during August pension deficits have grown by £100bn

China Logistics – Riding the Tide of Economic Rebalancing and the Internet Economy

Tuesday, August 23, 2016

LaSalle believes that the strong fundamentals and structural changes that are underway in China have the potential to translate into a favourable risk-adjusted return profile for opportunistic investing in the logistics sector.

DB deficit hits £1trillion

Thursday, August 18, 2016

The combined deficit of UK defined benefit (DB) schemes has hit £1trillion, according to pensions consultant Hymans Robertson.

Could BHS be the tip of the iceberg for the pensions lifeboat?

Friday, May 6, 2016

The failure of BHS raises big questions about what happens to those schemes that are guaranteed to fail.

Emerging markets: where do we go from here?

Friday, April 8, 2016

It has been a difficult few years for emerging markets. Having been beset by challenges – from a rise in US interest rates to low commodity prices and slower economic growth – many investors are asking where we go from here. While the asset class faces headwinds, the long-term case is strong and intact: it remains a broad and diverse universe, currently at a potentially attractive entry point for long-term investors in both equities and bonds.

The search for secure income

Friday, April 8, 2016

The uncertain outlook for the global economy has raised the prospect that core interest rates might stay lower for longer. Yields on investment-grade debt are subdued, or even negative, and could stay that way for some time. One possible investment alternative is to explore the opportunities offered by dividend-growing stocks; their ability to offer secure income combined with lower volatility is attractive over the long term.

Longevity swaps: Field of dreams or minefield of complexity?

Wednesday, October 5, 2011

Longevity swaps are back in the spotlight following the first ever deal that hedges the risk of working contributors to a scheme. Some see the swap of £120 million worth of liabilities between JP Morgan and the Pall UK pension fund as indicating a new departure for a nascent market ready to take off, whereas others remain sceptical of their value to schemes. Pension Funds Insider investigates