Pensions Wire

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  • February 14
    When NBA players first netted a pension
    ​The National Basketball Association (NBA) “All-Star” game takes place this weekend in New Orleans. It is one of the showpieces of the basketball season in the US as the best players from the league compete against each other (as East versus West) in a one-off game. Today’s NBA players are mostly millionaires, with the minimum salary a player can earn being $875,000 and the current highest paid p... Read More
  • February 08
    The discount rate quandary
    ​In pension scheme funding, the discount rate assumption is key.  Our latest research suggests that the vast majority of schemes set the discount rate used in their funding valuations with reference to the yield on gilts.  This seems to hold true, irrespective of the investment strategy the a scheme adopts - the return on all non-bond asset classes are effectively assumed to generate a fixed leve... Read More
  • February 08
    Quantitative squeezing?
    The Bank of England’s Quantitative Easing (“QE”) programme has certainly been a hot topic in the pensions industry over the last few years. The Bank’s monetary policy of creating money ex nihilo and using this to buy up financial assets was designed to boost asset prices, lower their yields, bring down borrowing costs and promote business investment and consumer spending; all in the name of meeti... Read More
  • January 30
    Are the BHS pension schemes going to get sorted?
    Over the weekend Sky News reported that Sir Philip Green and the Pensions Regulator are nearing a deal on the BHS pension schemes, some seven months after Sir Philip Green told the Work and Pensions Select Committee that he would "sort" the situation. It appears that the deal could involve a payment of more than £350m, up from the £250m which was reportedly being offered just before the... Read More
  • January 30
    Halcrow Headlines Hurt Tata
    ​ News that CH2M has been able to book a £37 million tax credit as a result of the pensions deal undertaken last summer will be a surprise to its employees and former employees who were members of the Halcrow Pension Scheme (HPS).   As part of that deal, members were given the choice of either joining a new defined benefit pension scheme providing a reduced level of benefits compared to the HPS ... Read More
  • January 27
    Life, liberty and the pursuit of a good pension
    ​As a globally-minded office, we at PSTS were particularly interested by an event occurring in the US on 20 January 2017. This event, of course, was Barack Obama becoming eligible for his pension. Pensions (and other benefits) for former US presidents were introduced by the Former Presidents Act in 1958. Under this Act, former US presidents are entitled to a pension equal to the salary of public... Read More
  • January 20
    Truell fails to break trustees’ steely resolve
    ​It was widely reported earlier this week that the Trustees of the British Steel Pension Scheme (the “Scheme”) have turned down a proposal put to them by Ed Truell which was meant to “save” the Scheme. The Trustees issued a statement earlier in the week confirming that they had dismissed Mr Truell’s proposal, despite his repeated efforts to strike a deal.  Under Truell’s proposal, the Scheme wou... Read More
  • January 16
    What price certainty?
    ​An interesting report was published last week by Milliman, which assessed the impact of various different retirement guarantees available in the market on the income that a retiree might expect to receive (in today’s money) over an average lifetime under a range of different economic conditions. The results of Milliman’s analysis were not particularly surprising, proving that there is no such t... Read More