Hints and tips:
...Hunt’s third “golden rule” is a recognition that he still needs Britain’s old-style defined benefit pension schemes, where payments are linked to salaries, to carry on funding government borrowing....
...Bulk purchase annuity insurers are the folks to whom defined benefit pension sponsors hand over the keys to their pension liabilities, along with big cheques (in the form of gilts and cash portfolios), then...
...Two-thirds of the defined contribution pensions market will be covered by the pact, according to people briefed on the deal, which will be signed by names including Aviva, Legal & General, Phoenix and Scottish...
...Companies were suddenly required to disclose any deficit as a financial liability in their accounts, triggering a rush to close defined benefit schemes and a broad rush out of equities and into government...
...This presents a significant problem for Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with $1.7tn of assets, as well as other worldwide pension funds that adopted tough...
...The transformation of markets put more short-term pressure on companies, which cut costs by outsourcing, automating, using less union labour and dumping defined benefit pensions for 401k plans, which put...
...This is particularly true for corporate and public sector “defined benefit” pension plans — which promise a certain payment to members....
...Under the proposals, defined contribution pension plans would be restricted from offering ESG funds as default investments — which is where many customers end up....
...Already the UK’s largest defined contribution pension scheme, Nest oversees assets of £7.5bn on behalf of 8m members....
...It has led some to fear that other companies will be dusting off their defensive plans....
...[and] benefit all of their stakeholders”....
...The so-called pension superfund was announced shortly after the government said it would encourage consolidation among the country’s 5,600 defined benefit schemes, most of which are facing a funding shortfall...
...In another case, the company helped a big public pension fund to shift from a defined-benefit to a defined-contribution scheme, “unitising” its pool of assets....
...Hymans Robertson, the pension consultants, calculates £175bn could be wiped from the combined deficit of private sector defined benefit plans if all schemes switched from RPI to CPI....
...House of Fraser, which is 165 years old, is also in talks with the UK Pensions Regulator over its rescue plan because of the retailer’s two “defined benefit” schemes, which as of March had a surplus of £97m...
...“Pensions progress - UK defined benefit scheme closed to future accrual, £250 million lump sum paid to reduce the deficit and the level of future deficit recovery payments.”...
...Hymans’ forecast suggests that around £700bn of defined benefit pension scheme liabilities could be passed to insurance companies over the next 15 years....
...Lombard Carillion pension crisis shows problem is powers, not payouts “BHS. Monarch. Carillion....
...Others, such as British Airways and the UK’s Royal Mail, have closed defined benefit schemes, which pay a retirement income based on an employee’s final earnings, or reduced benefits....
...It opted not to join the ranks of companies that have done a pensions insurance megadeal, which allow them to get rid of the increasingly painful headaches caused by their defined benefit retirement plans...
...“Defined benefit pension funds with all their flaws helped to pool risk....
...These effects may be counterbalanced by defined benefit funds with funding gaps in the current low interest rate environment, which may invest in risky assets to enhance expected returns....
...• A task force to tackle the problems faced by UK defined benefit pension schemes was launched at the Pensions and Lifetime Savings Association’s conference in Edinburgh last week....
...benefit pension plans.”...
...BA has spent the past few years attempting to fix the deficits in its defined benefit pension schemes....
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