Archive for February, 2009
Invest in schools through private finance initiatives
UK local authority pension funds officials are currently looking at the possibility of investing in schools throughout the UK through private finance initiatives, which of course, would be a huge development for the UK Education system.
The legalities are just being drawn up, but there is a good chance that the deals may start to take place throughout 2009.
Invest in schools through private finance initiatives
UK local authority pension funds officials have been in discussions with a quasi-government body about the prospect of investing in the building of UK schools through private finance initiatives (PFIs).
A spokeswoman for Partnerships for Schools, a quasi-government body created to manage the building of schools through PFIs, said it has been approached by local government pension fund advisers to consider whether they would be willing to include pension fund assets as an investment route for the building of schools.
Pensions are old
I see here they mention that half of the 39% of the participants in the survey, saying that they did not have a pension in place are under 18 years old.
While I think it might be a good idea to have something small in place, it is not surprising to see under 18’s without a pension. After all, which teenager is going to miss their big night out with friends to put £40 into a pension fund, that after inflation and a few years, will be worth next to nothing!
In a survey of 2,000 adults, Fairinvestment.co.uk has found that 39 per cent do not have a pension plan in place, and 20 per cent of those with a pension have had to reduce their contributions or stop paying into it since the credit crunch began
Nearly half of the 39 per cent surveyed who admitted to not having a pension in place were under the age of 18.
Follow BAe Systems’ lead on pensions
It is good to see that some employers actually respect their employers and will do everything in their power to ensure the likes of pensions stay as stable as possible for the future.
It would be even better to see a few other major players in employment follow BAe Systems’ example.
Follow BAe Systems’ lead on pensions
Unite, the UK’s biggest aerospace and engineering union, today (Monday) welcomed BAe Systems’ announcement that it will not be changing any benefits or asking workers to increase their contributions.
This good news comes despite an increase in deficit of the BAe pension scheme.
Railway pensions under threat
Britain has had a fairly stable railway service for a number of years, so its no wonder why the second largest union got concerned when it heard about threats within the railway employment, regarding pensions.
The union will be presuring workers to vote for industrial action, most of the 7,000 workers are expected to vote in favour.
Britain’ second largest rail union is urging 7,000 Network Rail workers to vote in favour of industrial action.
The Transport Salaried Staffs’ Association has opened a ballot over strike action, warning of “widespread disruption” if it goes ahead.
Fear of pension scheme’s
Many businesses are worried that pension schemes could have more of a negative affect on their business, than a positive one.
This comes after statistics revealed that around 90 percent of companies expressed they were worried about the affect pensions schemes would have on their business.
Nine out of 10 companies are worried about the impact their pension scheme will have on their business, research showed.
Around 90% of firms that still offer a defined benefit pension said they were concerned that the scheme’s trustees would ask them to increase their contributions to it at a time when they can least afford it.
Rolls Royce feel the wrath of pension deficit
Several civil aircraft manufacturers have began to see a slow down in their revenue thanks to the uncertainty and insecurity that surrounds the pension markets.
The current uncertainty has led to companies such as Rolls Royce loosing huge chunks of their original share value.
Rolls Royce feel the wrath of pension deficit
Rolls-Royce lost 12p to 321¾p amid worries that positive full-year results on Thursday would be ruined by a widened pension deficit and uncertainty over future demand for civil aircraft.
Dennis Jullens, a UBS analyst, reiterated “sell” advice with a 282p price target saying that although the aero-engine maker has moved much of its pension assets out of equities, there is a rump exposure that could drastically widen a pension funding gap.
Pension deficits retreat
The property market saw a slight recovery in January, with a slight rise in house value throughout the month, and the Pension sector is seeing a similar positive outlook.
January saw The Pension Protection Fund announce their deficit decrease by £4bn, now standing at £191bn.
The position of the UK‘s private sector, final salary, pension schemes improved slightly in January.
The Pension Protection Fund (PPF) said their collective deficit shrank from £195bn in December to £191bn.
Pension buy outs slow down
Aon Consulting are suggesting that throughout 2009, the Pension buy out market is likely to slow considerably; definitely not the only market in difficulty.
2008 was a good year for the pension buy out market, where both the value of deals and the actual number of deals saw a huge increase, something that is likely to swap around for 2009.
The U.K. pension buyout market will slow this year despite record growth in 2008, according to an analysis by Aon Consulting.
The burgeoning bulk annuities market rose in terms of both the value and number of deals in 2008, with 273 deals worth £8.2 billion ($12.1 billion), up from 259 deals worth £2.8 billion in 2007.
Retirement savers need stability
Retirement savers are definitely not being shown enough respect from the banks or the Government.
The pensions industry needs to step up their game to ensure that savers are being offered the best deals.
Retirement savers need stability
Following the Department of Work and Pensions (DWP) research into the benefits of long-term saving, MetLife is urging the government and pensions industry to do more to tackle current levels of uncertainty among retirement savers.
The report from the DWP, Saving for Retirement: Implications of Pensions’ Reforms on Financial Incentives to Save for Retirement, shows that, given reasonable assumptions about the future, most people can expect to be better off in retirement by saving, with the majority getting back more than double the amount they save.
UK pension challenge
The pension scheme alongside the UK banking sector is slowly falling to pieces and it is only a matter of time before pension plans start to evaporate.
Employers in the UK are about to experience the same strictures as their Australian counterparts in dealing with the superannuation guarantee following passage of the legislation underpinning a so-called Personal Accounts scheme.
And according to UK research house Datamonitor, the new scheme will test both employers and the UK Government even before it is introduced in 2012.