Government-issued longevity bonds would allow longevity risk to be shared efficiently and fairly between generations. In exchange for paying a longevity risk premium, the current generation of retirees can look to future generations to hedge their aggregate longevity risk. There are also wider...

A single valuation basis (using market values) now dominates the valuation of pension scheme assets and has replaced the previously dominant actuarial and accounting bases.The same cannot be said for pension scheme liabilities. There are three different valuation bases for liabilities currently...

In this report, we ask whether the cost of pension scheme membership in the UK (we use the total expense ratio or TER) offers value for money to the ‘average' member, by which we mean the 90-97% of employees who will be automatically enrolled into the default fund. The key features of a...

"An Unreal Number" examines pension accounting and, in particular, its effects on the results and financial position of the sponsor of a defined benefit pension plan. Current pension accounting standards are better than their predecessors because they seek to provide information about the value...

We find that savers do not tend to think about risk in an integrated way, especially when it comes to long-term risk. Instead they appear to think in segmented boxes. This is very bad for long term planning, since it can lead to inconsistencies. To illustrate, it is possible for people facing a...

The objective of the research was to analyse and evaluate the role of real estate in the UK's defined contribution (DC) pensions market in relation to auto-enrollment – the new system of pension scheme provision for private sector employees in the UK, which is being phased in by all employers...

Dealing with the reluctant investor examines the governance of defined contribution (DC) schemes with reference to investment choice and, in particular, the design of the default fund. We explain where and why the current system fails to support DC scheme members and what steps can be taken to...

The UK Pensions Act 2004 has turned the defined benefit pension promise into a pension guarantee and has established the Pension Protection Fund (PPF) in order to secure this guarantee where a company becomes insolvent and the scheme is underfunded. The Act has greatly upset corporate pension...

This study examines pensions portability and the preservation of pensions rights in the U.K. We review the economic theory underlying pension schemes and the arguments for and against more pensions portability. We show that the effect of current laws and actuarial practice is to penalize young...

The purpose of this Report was to identify areas that might be considered in a full benchmarking study of the investment governance of the 34 London Local Government Pension Schemes (LGPSs). The preliminary results of our research indicated that in certain cases key decision-makers are...