All indexation articles – Page 3
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News
Govt chooses full indexation of GMPs for public sector schemes
The Treasury has decided to abandon the idea of converting guaranteed minimum pension benefits in public sector schemes, opting for a permanent extension of full indexation, which will be more expensive for private pension funds that are forced to mirror government rules.
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News
Pandemic causes £41bn DB deficit bump
On the go: The coronavirus pandemic and attendant national lockdown saw a marked deterioration in defined benefit scheme funding positions, with the overall deficit up £41bn as of March 2020 compared with the same month in the previous year.
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News
Switch to index-linked gilts could boost DB pensions and save billions
On the go: A rebalancing by the government from fixed interest to index-linked gilts could provide additional security for pension schemes and their members while saving taxpayers billions, according to analysis by LCP partner Jonathan Camfield.
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NewsBT, Ford and M&S schemes consider legal challenge on RPI reform
The trustees of the BT, Ford and Marks and Spencer pension schemes have been granted an extension to the period in which they can consider filing for judicial review of the proposed alignment of the retail price index with the consumer price index including housing costs.
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OpinionSchemes cannot own same stocks in a downturn as in a recovery
Pension funds need to respond to a regime change from the low-growth, low-inflation environment that suited bonds and bond proxy equities, to a reflationary/inflationary one that will suit cyclicals, energy and materials, and value stocks in particular, warns Ian Lance, co-manager of the Temple Bar Investment Trust.
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News
RPI reform boosts inflation hedging
On the go: The announced reform of the retail price index, to match the consumer price index including housing costs, saw inflation hedging rise by six per cent quarter on quarter at the end of September 2020.
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PodcastsPodcast: Trustees advised to self-certify before Christmas
Podcast: Jo Myerson, trustee director at Ross Trustees, tells Pensions Expert it is important that trustees comply with the Competition and Markets Authority’s self-certification rules early in order to avoid a mad, post-Christmas dash to meet the January 7 deadline. She is joined by David Rae, head of strategic client solutions at Russell Investments, in an episode also covering insolvencies, superfunds and the fallout from the reform of the retail price index.
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News
RPI reform to leave linker owners short-changed from 2030
The government is to press ahead with controversial reforms to the retail price index leaving index-linked gilt holders worse off, but has decided to delay the move until 2030.
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News
RPI decision timing ‘risks volatility’
On the go: The long-awaited outcome of a consultation on replacing the retail price index of inflation is set to be published on November 25, but investors have warned that the government’s timing risks violent market reactions.
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OpinionTrustees need help to solve ESG puzzle
Trustee boards’ best efforts to make meaningful progress on environmental, social and governance considerations are hamstrung by a lack of standardisation and a lack of integrated consultant ratings, writes Tegs Harding of Independent Trustee Services.
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News
Scottish Widows to divest £440m from ESG failures
On the go: Scottish Widows is to divest £440m from companies that failed to meets its environmental, social and governance standards.
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News
Sustainability and adequacy still dragging UK's pension system
Data crunch: The UK has fallen one place to 15th in the Mercer CFA Global Pensions Index, despite seeing a marginal improvement in its score, while Covid-19 increases pressure on retirement systems worldwide.
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News
Small-cap UK active equity funds find some success in H1 2020
On the go: Just over half of all UK active equity funds have equalled or beaten benchmark returns before fees in the first half of 2020, while 45 per cent trailed behind the S&P UK Broad Market Index.
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News
Govt consultation suggests abandoning GMP conversion
The Treasury has indicated it may axe guaranteed minimum pension conversion in a new consultation, with experts citing administrative costs as a reason to ditch the idea.
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OpinionRPI switching – dead in the water?
Sackers’ James Bingham analyses the recent court cases on requests to change inflation indexation, explaining that despite the string of losses, employers will still continue to look at the courts with a glimpse of hope as a positive verdict could shed tens of millions of pounds in liabilities.
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News
Warnings of 20% member losses as RPI consultation closes
On the go: Investment managers have demanded that the government compensates clients for losses they will suffer if the retail price index is downgraded, as a consultation on changes to the outdated inflation measure closes.
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News
High Court rules ‘drafting errors’ sufficient to justify switch to CPI
A High Court decision has found in favour of a pension scheme switching to the consumer price index from the retail price index, but only because of a drafting error in the scheme’s rules.
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News
High Court delivers another CPI setback
Employers seeking to switch their defined benefit pension schemes from the retail price index to the consumer price index have been dealt another blow, as the High Court yet again refused to establish a precedent.
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OpinionRisks and opportunities coming from RPI reform
LCP’s Jonathan Griffith discusses how the announced reform of the retail price index presents several challenges for pension schemes, but could also be a chance for trustees and sponsors to better adapt their inflation-hedging strategies.
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News
Trustees vindicated in RPI/CPI switch complaint
The Pensions Ombudsman sided with pension scheme trustees in two separate cases over the decision to switch their inflation measure away from the retail price index.