News Analysis: Schemes dodged a potential £3bn cost hike this week, as the legal position on the equalisation of pension benefits for same-sex partners withstood further challenge in the courts.
The success of defined contribution is hanging on the ability to drive up contributions while keeping members on side with pension savings, as data show it risks falling short of delivering adequate retirement incomes.
Chancellor George Osborne pushed local authority scheme collaboration forward this week by announcing they would be pooled into six “British Wealth Funds" as part of a plan to ramp up infrastructure investment and reduce scheme running costs.
Competition for fiduciary management has been bolstered by a rise in open tenders but existing relationships continue to be a dominant driver behind schemes’ choices and questions remain over the value of the approach.
From the blog: There is currently a logical fallacy in the pensions world that runs like this: First, pensions are a Good Thing. Second, millions of people are excluded from auto-enrolment.
Conclusion: We must bring millions more people into auto-enrolment.
While I agree with the premise, the conclusion simply does not follow.
Any Other Business: It is natural in a democratic society to expect your voice to be heard. In pension schemes this is channelled through the member-nominated trustee, but when it comes to seeking your members’ views, how much is too much?
Comment & Analysis
Editorial: On Monday George Osborne announced the creation of six British Wealth Funds, into which our 89 local government pension schemes' assets will be pooled. Quite what this verb entails is still up for debate.
DC Investment Quarterly: The introduction of freedom and choice and the charge cap this year marked two profound changes to the defined contribution marketplace, affecting both what DC investment products will be expected to deliver and the limits within which they have to deliver them.
In the absence of a third-party administrator kitemark, Barnett Waddingham's Julie Walker gives her tips on how to spot a quality administrator.
Video: The Pensions Regulator's chief executive Lesley Titcomb outlines the watchdog's key areas of focus – including a revision of the DC code, the freedom fallout and mastertrust assurance, and touches on the argument for a single regulator (6:11).
Video: Which trends are driving how pension funds are structuring their growth portfolios? M&G Investments' Steven Andrew, Nest's Mark Fawcett and Barnett Waddingham's Marcus Whitehead discuss the opportunities and risks (5:55).
Video: Aviva Investors' Mark Versey, plus HR Trustees' Giles Payne and Redington's Kenny Nicoll discuss how underlying investment strategies are evolving (5:47).
The Cut: latest posts
From the Pensions Expert blog: