Where did the deficit come from? – a study in scarlet (ink)

cover of the book: A Study in Scarlet

20 January 2015 According to Pension Protection Fund (PPF) data1, the s.179 funding level for the aggregate universe of DB schemes potentially eligible for entry into the PPF fell sharply during 2014. According to their database, the aggregate funding position moved from a small surplus (0.8% at Dec 13) to a significant deficit (-17.7% at Dec 14). So where did all this red ink2 come from? Well … conventional growth assets may not have helped…

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Seasons Greetings from Veasey Associates

Christmas 2014 - Deer by Melissa - Veasey Associates

4 December 2014 2014 marked yet another busy year for pensions. Looking back on the same time last year, it would seem that the macro-economic crystal ball had clouded over. Speculations abounded that the Bank of England would raise interest rates rather sooner than expected – perhaps even Q4 2014; as it turned out, that milestone now appears even further ahead than before. Investment was again tricky with many key asset classes being seen as…

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DB Pensions – End-February 2014 PPF deficit

PPF 7800 DB Pension Scheme Funding Ratio - February 2014

16 March 2014 The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-February 2014) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. February marked a small improvement in aggregate universe funding levels, due mainly to a small increase in growth assets. The average funding ratio rose from 93.7% to 94.9% reflecting an reduction in overall…

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DB Pensions – End-January 2014 PPF deficit

PPF 7800 DB Pension Scheme Funding Ratio - January 2014

28 February 2014 The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-January 2014) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. Growth asset levels declined slightly during January – the traditional post-Christmas bounce was short-lived this year! – though long gilt yields declined slightly. This combination led to a small decline in eligible scheme…

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Do you have quality DC pension scheme governance?

closeup of a slide rule

10 February 2014 The Pensions Regulator has followed up its work on the DC Code and DC Regulatory Guidance with their views on how trustees (both for single- and master-trust vehicles) should assess and communicate their compliance with these initiatives. To recap, the DC Code lays out the legal framework for DC trust-based pensions and provides suggestions of practical guidance on how to comply whereas the DC Regulatory Guidance lays out the Regulator’s view on…

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My Trustee Philosophy

china model of a phrenology head

15 January 2014 I’m often asked to summarise my top-level thinking on how I approach trusteeship – my trustee philosophy. This question is most often posed with respect to the investment duties involved but – as there is no such thing as a solely investment-focused trustee – the principles involved serve me in the wider exercise of trustee duties. I hope that you find them interesting … please remember you read them here first !…

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DB Pensions – End-December 2013 PPF deficit

PPF 7800 DB Pension Scheme Funding Ratio - December 2013

15 January 2014 The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-December 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. December marked the third consecutive month with an improvement in eligible scheme funding – with average universe funding ratio increasing from 95.0% to 97.6% reflecting a fall in overall deficit from £59.7bn to…

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DB Pensions – End-November 2013 PPF deficit

PPF 7800 DB Pension Scheme Funding Ratio - November 2013

20 December 2013 The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-November 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. November again marked an improvement in eligible scheme funding – with average universe funding ratio increasing from 93.8% to 95.0% reflecting a fall in overall deficit from £75.6bn to £59.7bn. This small change…

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Seasons Greetings from Veasey Associates

Christmas 2013 - Deer by Isabella - Veasey Associates

20 December 2013 2013 marked another busy year for pensions. The auto-enrolment process moved on to large to medium size employers, with much debate about the relative merits of contract-based, trust and mastertrust solutions. We continue to work hard on considering the merits of lifestyling and target date funds with justified focus on default fund construction – might Collective Defined Contribution provide one solution to misalignment of risk balance between employer and company ? ……

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DB Pensions – End-October 2013 PPF deficit

PPF 7800 DB Pension Scheme Funding Ratio - October 2013

22 November 2013 The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-October 2013) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund. October marked an improvement in eligible scheme funding – with average universe funding ratio increasing from 92.9% to 93.8% reflecting a fall in overall deficit from £85.0bn to £75.6bn. The latest PPF update…

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