Pensions Management - the magazine for pension & investment industry professionals
Back issues » 2009 » October
In this life, one thing counts, In the bank, large amounts

It’s always nice to be recognised for something, isn’t it? Even if we aren’t screaming out for attention, it’s nice when someone recognises something we’ve done as having some intrinsic value.

Cameron: MPs must set an example to the public sector

Cameron vows to shut MPs’ scheme

Conservative leader states he will close ministers’ final salary scheme to new members upon election to kickstart public sector pensions reform

TUC refutes public sector plans are risky and unstable

The Trades Union Congress (TUC) has challenged the idea that the public sector pension system in its current form is unsustainable.

Looking ahead to 2010

As the conference season reaches full swing, political parties have been laying out the major issues facing the pensions industry ahead of next year’s general election.

Johnson: need for flexible option

CPS report proffers a total restructure of S2P

The government’s pensions policies are fundamentally flawed and should be abandoned in favour of a new and sustainable system, a report published by the Centre for Policy Studies (CPS) has claimed.

Hayes: unsure how Solvency II will impact on insurers

Cheaper derisking strategies revive a flagging market

Risk transfer business levels are next year tipped to exceed those of 2008, according to respondents to PM’s buyout/buy-in survey.

Too many words, not enough action

Some months ago I used this column to outline the growing trend among many industry bodies to refocus their lobbying away from the sitting government and onto the party in waiting. With just six months until a general election, the pensions industry is in the advanced stages of deciding on which side its bread is buttered.

McNamara: property is now a more attractive concept

Property begins to appeal

UK pension funds have rejuvenated their interest in real estate, with more than 50% looking to up their allocation to the asset class in the next three years.

Manager defends fund’s high volatility

A leading pension fund manager has insisted she is still bullish on emerging markets despite seeing her fund yo-yo in the past year.

Myners: one size does not fit all

Myners voices concerns over blanket directive

Lord Myners has urged pension funds and other institutional investors to lobby for amendments to a controversial proposal for European Union (EU) legislation.

Property derivatives offer more potential

Commercial property has historically been an asset class without an efficient tool for managing market risk – and arguably one with the greatest need. The illiquid nature of commercial property investments makes it hard to allocate capital when relying solely on trading underlying assets.

Deficits break £1trn barrier

Liabilities of UK final salary schemes exceeded £1trn for the first time during August, according to the latest update from the Pension Protection Fund’s (PPF) 7800 Index.

Climate change funds expected to clean up

Global revenue from climate change-related products and services increased by 75% to £324bn last year, according to HSBC’s recently published annual review of climate change indices.

Callaghan: investors need to ensure they are receiving good value for money

Drawdown makes its way to those with fewer savings

Investment-linked products such as income drawdown are becoming more accessible to those with smaller pension pots, according to new research.

Default funds go under the spotlight

Default funds in defined contribution (DC) schemes are coming under greater scrutiny, according to a recent study.

Graves: small Sipp operators pose little threat to FSA aims

Shortcomings of small Sipp firms a cause for concern

The latest Financial Services Authority (FSA) report into small self-invested personal pension (Sipp) providers could have wider implications on the issue of mis-selling, Mattioli Woods has warned.

Cheaper Sipps continue to join market

The self-invested personal pension (Sipp) market has seen the launch of two new low-cost products.

The winners receive their Pension Quality Mark awards from the NAPF

DC awards go to lucky seven

Seven employers have become the first to be awarded the National Association of Pension Funds’ Pension Quality Mark for their defined contribution (DC) schemes.

Fund in longevity hedge first

A local authority pension scheme is poised to become the first of its type to hedge itself against the risk that its pensioners will live longer than expected.

FTSE firms turn to ETVs to stem liabilities

At least two FTSE 100 employers are currently tendering for enhanced transfer value (ETV) exercises after a shift in corporate bond values made pricing more effective.

Seaton (left) and Hammond with the TAS award for best SSAS in 2008

Industry pays its respects to Seaton

Tributes have been paid to David Seaton, joint managing director of Rowanmoor Pensions, whose body was found on a Cornish beach last month.

Financial Times Guides – Personal Tax 2009-2010 Sara Williams & Jonquil Lowe £12.99

Making tax simple

According to the annual television campaign, “tax doesn’t have to be taxing”. Unfortunately it often is, and this year’s Budget has hardly made things easier. Do you earn more than £150,000 a year? Are you likely to be stung by anti-forestalling laws?

Pensions seminars are not to be missed

Why would an employer with a great pension scheme not want to tell the workforce about it whenever possible? No, I can’t work it out either.

Richard Allen

Adultery, camping and DC

While pensions are still in the headlines, individuals and providers must work together to focus the UK workforce on saving now to retire in comfort in years to come

Pensions reform is a mythical beast

I don’t know about you, but I’m into myths and legends. I think in the past people felt the need to invent mythological characters and events to help them explain the otherwise unexplainable world they found themselves in. You can see how dancing to invoke a rain god might seem sensible if the mother of all rainstorms in the past had happened to coincide with a big tribal dance of some kind. The human mind is pretty good at putting together two and two and coming up with five.

Nothing if not Frank

Frank Field is one of the most outspoken MPs in parliament. Here, he tells Owen Walker where he thinks the government has gone wrong on pensions and how it can be fixed

Look beyond annuities

Selecting the right income vehicle at retirement is confusing enough, but the industry needs to work together to ensure all members are treated fairly and considerately

There for the taking

The at-retirement marketplace knows no bounds when it comes to demand, but the industry must get it right to best serve its own needs and those of its customers

A system to be envied

The shift away from DB has arguably gone too far in terms of who shoulders the risk, but working towards a hybrid solution could put pensions back on track

Hindle: rates alternative assets as a short-term investment

Offering assurance

Mark Hindle discusses the benefits of starting up an investment fund, the impact of the financial downturn on the market, and the dream of working on a boat – even if he doesn’t get paid

Schemes are now able to take a detour on their way towards buyout

Temporary change of direction

While the cost of full buyout has risen in 2009, DB schemes have an increasing number of alternative derisking options open to them in the interim

Reducing the long-term risk

As the first signs of economic stability emerge, manageable derisking solutions will be key for pension trustees and sponsoring employers

Drawdown continues to grow, but the negative effects of the recession will not be clear for some time

Blue skies ahead?

The market for income drawdown products remains buoyant, although it could still face some stormy weather over the coming months

Taking back control

Although income drawdown still offers flexibility and freedom to many retirees, product innovation is driving the retirement income market ever forward

Will the launch of many new corporate platforms trigger a sea change in employee benefit provision?

Platform for change

As the needs of the workforce and its employers evolve, will the integrated platforms currently under development meet their demands?

In the process of derisking, complex hedges can bring unforeseen threats

Hidden dangers beneath the surface

Improving mortality rates pose a fiscal threat to schemes and longevity swaps are one way to hedge against these risks – but their complexity can bring further problems

Make the call

When and whether to hedge against liability risk is a decision that demands great consideration

A complex framework of care

A national debate is required to decide how care funding for the elderly can be reformed to provide enough for the UK’s retirees

Duval: implementation of Pension Solution will be of highest quality

Duval the solution for Aon

Aon Consulting has appointed Donald Duval as head of its Pension Solution project, launched earlier this year in partnership with Russell Investments.

Gray: joins the USS from Hermes, succeeding Peter Moon

USS: Gray over the Moon

The Universities Superannuation Scheme (USS) has appointed Roger Gray as chief investment officer (CIO).

Pension Corp picks up six

Pension Corporation has brought in six staff across the business to bolster its team and service provision.

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