UK roundup: ScottishPower Pension Scheme, Abbey Life, PPF, deficits

Posted On Sep 29 2020 by

first_imgPeter Thompson, chair of the trustee board, said the deal was a positive step in managing the scheme’s liabilities, and improved security of benefits for all members.The trustee was advised on the deal by Mercer, with legal counsel provided by Scottish law-firm Shepherd and Wedderburn. Hymans Robertson acted as actuarial advisers.Head of longevity swap consulting at Mercer, Andrew Ward, said reinsurance firms were the end destination of longevity risk with the deal showing a range of interest from the reinsurance market.“As a result, it was ultimately possible to remove the risk at below the level of the current funding assumptions thereby achieving the holy grail of reducing both risk and deficit,” he said.The SPPS deal kicks off 2015’s market as the last year saw a record breaking £25.4bn of longevity swap deals, led by the £16bn transfer between the BT Pension Scheme and Prudential Insurance Company of America (PICA).Legal & General today published research demonstrating growing demand from longevity swaps and bulk annuities among the UK’s largest pension funds.In other news, the Pension Protection Fund (PPF) has published its latest data on UK scheme deficits showing the worst funding level in history.Deficits among the 6,057 schemes in the PPF 7800 Index, calculated on its ability to provide PPF-level benefits (s179), hit £367.5bn at the end of January.This was a rise of £101.2bn in a single month as funding levels fell to 77.6%, a drop of 4.7 percentage points.Over 12 months, deficit levels have risen over 600% as discount rates calculating liabilities continued to be squeezed by falling government and corporate bond yields.Liabilities among the schemes now reached £1.6trn, rising over £144bn in January and exceeding asset returns of 3%.The yield on 15-year Gilts fell 41 basis points over the month of January – which the PPF said act as the main driver of funding levels.Over 2014, increased pressure on bond markets saw yields dramatically fall in the latter half, further causing pressure on the funding in UK pension funds. The ScottishPower Pension Scheme (SPPS) has announced a £2bn (€2.7bn) longevity swap arrangement with Abbey Life Assurance, as insurance risk-reduction products continue in popularity.UK pension funds now have a total value of longevity swaps in excess of £50bn in just over five years since the first deal in 2009.SPPS’ longevity swap, which acts as an insurance policy against the risk of pensioners living longer than expected, will cover 9,000 pensioner members as Abbey Life, a wholly owned subsidiary of Deutche Bank, takes on the risk. The scheme, which had £2.8bn in assets at the end of 2013, estimated the average male SPPS worker would live to be 88 years old, while female employees had an average life expectancy of 89.9 years.last_img read more


Solskjaer set for Man United interim role

Posted On Jan 6 2020 by

first_imgSolskjaer, currently in charge of Norway’s Molde, was widely reported to be United’s leading candidate for the interim role for the rest of the season while they search for a permanent appointment in the close-season.There has been no official announcement from the club, however a video appeared on United’s official website celebrating Solskjaer and seeming to confirm his appointment.A video of him scoring the winner for United in their 1999 Champions League final triumph against Bayern Munich was accompanied with the headline ‘The most famous night of Ole’s career’.Norwegian Prime Minister Erna Solberg also appeared to confirm Solskjaer’s appointment, writing on Twitter: “Great day for Norwegian football. Good luck keeping control of the Red Devils.”Solskjaer, nicknamed the baby-faced assassin, scored 128 goals in 367 appearances for United during 10 seasons playing under the club’s legendary boss Alex Ferguson, who signed him from Molde in 1996.After retiring, the Norwegian was appointed as United’s reserve-team boss before joining Molde as manager in 2010.Solskjaer had an ill-fated spell in charge of Cardiff in 2014, winning just nine of his 30 games as they were relegated from the Premier League before being dismissed and returning to Molde in 2015.Molde’s season ended last month and does not resume until March 31, with Solskjaer unlikely to refuse the chance to manage such a prestigious club.Ironically, his first match in charge of United could be against Cardiff on Saturday if the mooted deal is completed in time.United are in sixth place in the Premier League after their worst start for 28 years.Tottenham manager Mauricio Pochettino and former Real Madrid boss Zinedine Zidane are among the bookmakers’ favourites to take the United job at the end of the season.0Shares0000(Visited 1 times, 1 visits today) 0Shares0000Molde boss Ole Gunnar Solskjaer is reportedly set to take charge of Manchester United on an interim basis © NTB SCANPIX/AFP / Svein Ove EkornesvaagLONDON, United Kingdom, Dec 19 – Ole Gunnar Solskjaer looks set to replace Jose Mourinho as Manchester United’s interim manager after the club appeared to accidently announce the appointment on their website.Mourinho was axed on Tuesday after just two-and-half years in charge at Old Trafford and the troubled Premier League club are reportedly ready to bring back one of their old heroes to take his place on a temporary basis.last_img read more