Week ending 20 September 2019
A sweet buy-in
The Tate & Lyle Group Pension Scheme has completed a full buy-in of its defined benefit liabilities. The £930 million bulk annuity with Legal & General covers the Scheme’s remaining uninsured liabilities, after an earlier £347 million pensioner buy-in with the same insurer in 2012.
The future of DC
The Pensions Policy Institute has published its annual, comprehensive report on DC workplace pensions. One of its conclusions is that the traditional lifestyle model may no longer be the most appropriate default investment strategy. The PPI has also published a report on DC charging structures, which shows that a low level of charges does not always mean good value. The report concludes that consolidating pension pots can help provide better outcomes for members and goes on to consider how best to tackle the issue of people accumulating multiple (and sometimes very small) DC pots.