Clara-Pensions’ Post

Growing Number of Pension Plan Sponsors with De-Risking Goals Looking to Completely Divest Their Company’s Pension Liabilities in the Near Future: The percentage of companies with de-risking goals which plan to completely divest their defined benefit pension plan liabilities has increased to 93%. #BulkPurchaseAnnuities #GroupAnnuities #PensionRiskTransfer #LongevityRisk

UK: FCA bans 4 advisers over ‘reckless’ pension transfer advice: The Financial Conduct Authority has banned two financial advisers and two partners from St Martin’s Partners LLP from working in financial services and has collectively fined them £590,544, for “reckless” pension transfer advice. The regulator said Adrian Douglas, Liam Martin, Frank Oxberry and Alec Cuthbert were responsible for a pension transfer advice model that put people’s guaranteed retirement benefits at risk. Between October 2015 and July 2016, the FCA claims St Martin’s Partners’ advice model put 547 customers at “significant risk” of transferring out of guaranteed defined benefit pensions into investments which were unlikely to be suitable for them, including investing in hotel developments in Cape Verde offered by The Resort Group. The FCA said the firm’s advice model did not take into account the information required to assess the suitability of a pension transfer or how the benefits of the customer’s existing scheme compared to the new investment. Douglas and Martin, both qualified pension advisers, played a role in designing and operating the transfer advice model used at the Essex-based firm, according to the regulator. Customers were brought to St Martin’s Partners through ‘introducer’ firms, including First Review Pension Services, a subsidiary of The Resort Group. The FCA believes the firm had a “clear indication” of the link between The Resort Group and First Review Pension Services. The lesson? Be careful while selecting your advisor!

Stanbic IBTC Pension Managers Limited has announced the early closure of some branches and a temporary disruption of its digital services due to a planned system maintenance exercise.

📢 BREAKING NEWS: Tayside Pension Fund Mis-Advise Revealed! 📢 A significant number of employees in the Tayside Pension Fund have been mis-advised, resulting in massive financial losses. These final salary pensions, which offer substantial benefits, were wrongfully transferred, causing losses in the hundreds of thousands. A total of 41 employers allow their employees to join the Tayside Pension Fund. We continue to uncover multiple cases of inappropriate advice that have led to both current and former employees suffering considerable financial losses. Read more here: https://lnkd.in/dXsgNkJX

The Association of Canadian Pension Management (ACPM) offered Canadian pension plan sponsors, administrators, trustees, asset managers, a look into the organizations in Canada and around the world who are employing a range of strategies to increase pension coverage #PensionsCanada #pensionCoverage #LaborMarket

Well funded pensions should consider Liabillity Driven Investing (LDI) as part of the investment portfolio mix to stabilize funding levels.

"Does What It Says On The Tin" In the world of Managed Portfolio Services (MPSs), one might think traditional life company pension funds have become obsolete. However, the £53bn Governed range is proving otherwise, with its straightforward approach and competitive fees for clients with smaller pension savings. The Governed range offers two portfolio options: one for those saving for retirement, and another for those who have already retired. Clients are matched with a fund that aligns with their risk profile and, for those saving for retirement, the time left until they retire. When it comes to fees, the range offers its discounts starting from a relatively low point. Even clients with pension pots larger than £42,800 pay just 0.5% a year before profitshare. For comparison, while a Governed investor pays 0.5% for over £42,800 invested, MPS investors pay an average of 0.6%, according to data from NextWealth. Royal London clients also receive an annual ProfitShare award, a share of the mutual’s profits paid out to clients most years. This year, Royal London plans to share £163m with 2 million customers in April, effectively a 0.15% discount to their plans AMC. That 0.5% AMC becomes 0.35% all in before adviser charging when taking into account this years profit share. How does the Governed Range stack up in terms of performance? A look at the range’s three largest funds - Portfolio 4, 5, and 6, which together carry £38.2bn in assets - shows the range consistently outperforms its benchmarks. We are low cost, high value, actively managed, well diversified, and have a 15 proven year track record. There are 2 Million plans invested in Governed Portfolios as at 8th Jan 2024. £50 Billion of our customers pension savings is invested in the Governed Portfolios as at 8th Jan 2024. We hold 8 Different Asset classes including commodity and property assets. There are more than 4,600 individual holdings in each Governed Range Portfolio. We have made 120 tactical asset allocation changes since launch. Our middle of the pack balanced GP5 has had a 7.1% CAGR since launch. When you are researching options for your clients, don't forget to compare your MPS solutions to more traditional multi-asset funds. Once you look under the bonnet you might be surprised to see they are not so different after all..

Challenges in establishing a Pension Protection Fund consolidator for Defined Benefit pension schemes The UK government's initiative to establish a public sector consolidator by 2026 for smaller Defined Benefit (DB) pension schemes, primarily unattractive to commercial providers, is a significant development. The proposed consolidator is expected to operate under the umbrella of the Pension Protection Fund (PPF), sparking discussions on its potential design and eligibility criteria. As the government plans a consultation to address these aspects, numerous challenges and unanswered questions loom over the project. In the article below Rowleys Head of Pensions, Matt Hutchinson, shares more about the plans, along with the risks and challenges. https://lnkd.in/ezv-FAW3

Interesting and informative read about the amendments to section 14... I really miss the Pension fund space.

With the recent turmoil in the Ohio pension system, Canadian pension funds are showing stability through strong governance. BLG partner Scott McEvoy emphasizes the importance of structure and process: “Good governance starts at the top.”   Read more in the full article: https://lnkd.in/gZQN_TaD