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...The chancellor is also expected to outline further details on reforming defined benefit pensions and unlocking funds from local authority pension schemes. The BVCA declined to comment....
...point would be to consolidate the 86 local government pension funds in England and Wales....
...UK chancellor Jeremy Hunt last year grabbed headlines with efforts to channel more defined contribution funds into private companies....
...In a move that will increase pressure over funds with significant allocations offshore, the chancellor confirmed he would introduce a new requirement on defined contribution pension funds, and local authority...
...The contrast between the defined contribution schemes of private companies and the inflation-linked defined benefit schemes of the public sector has become increasingly stark....
...This only leaves the issue of how to persuade the civil service and others to forego their current benefit structure to join the majority of private sector employees in defined contribution arrangements....
...In a move aimed at stimulating economic growth, Hunt confirmed plans to introduce a new requirement on “defined contribution” and local authority pension funds to disclose their allocations to UK and international...
...The rise of defined contribution pension plans combined with the growing strain on the social security government retirement programme had left the US particularly unprepared for a huge increase in the retiree...
...Meanwhile, the Mansion House compact between defined contribution pension providers does not need legislation because it is voluntary, with the chancellor saying he would not force private sector funds to...
...This would range from private sector defined contribution (DC) and defined benefit schemes to local authority pensions....
...The government also supported an agreement announced in July — the so-called “Mansion House” compact — between nine of the UK’s largest defined contribution pension providers representing more than £400bn...
...In his Mansion House speech in July, the chancellor announced a voluntary pledge by nine of the UK’s largest pension providers to commit 5 per cent of their so-called default funds for defined contribution...
...Total public sector net debt, expressed as a percentage of GDP, will be 98 per cent this fiscal year, according to the Office for Budget Responsibility....
...With thousands of private defined benefit schemes and tens of thousands of defined contribution ones, the market is highly fragmented....
...Another part of the answer is a move towards collective defined contribution funds, in place of today’s plethora of smaller funds, of which there are over 3,000, according to Citi....
...The government confirmed it would revise guidance governing the £360bn Local Government Pension Scheme (LGPS), which is administered by 86 town hall pension funds, so more cash is directed towards UK start-ups...
...And higher long-term interest rates, pushing down the value of bonds, have hit the value of defined contribution (DC) pension pots, even though equities are up....
...* There are problems with the ONS’s defined contribution data. The ONS reckons that DC assets totalled £223bn at the end of 2022....
...so-called default funds for defined contribution pension savers to unlisted equities by 2030....
...Another part of the answer is a move towards collective defined contribution funds, in place of today’s plethora of smaller funds, of which there are more than 3,000, according to Citi....
...The fragmentation of defined contribution plans is even worse, with nearly 27,000 funds. With private sector DB plans mostly closed, workers will depend on inadequate DC plans....
...Hunt will seek to merge some of the 80 or so local government pension funds....
...The final shape of Hunt’s plans — which will cover defined benefit, defined contribution and local government pension schemes with tens of millions of members — is due to be set out in his Autumn Statement...
...Before 2015, individuals with a defined contribution pension benefit usually had either to take a scheme pension at retirement or purchase an annuity....
...Only a slim sliver of UK defined benefit pension money is still invested in UK stocks. Defined contributions and other alternative retirement savings should now start mounting up....
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