Tag Archives: LDI

Paint my bandwagon

Posted on April 24, 2024 by henry tapper

There are some consultants who see the funding of DB pensions as a mercurial science where schemes can be magically elevated from zero to hero at the click of a chancellor’s mouse. For them the gilt rate determines pension funding … Continue reading →

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LDI “episode” cost our pensions £166,000,000,000

Posted on February 19, 2024 by henry tapper

An Analysis of the Pensions Regulator’s Review of impact on DB landscape following (the) LDI Episode: Part 2 This is the second of our blogs commenting on TPR’s Report to Work and Pensions Committee on LDI. The first can be … Continue reading →

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Keating and Clacher’s review of the DWP’s proposed Funding Regulations

Posted on February 10, 2024 by henry tapper

A Brief Review of the DWP’s Impact Assessment of the proposed Occupational Pension Schemes Funding and Investment Strategy and Amendment Regulations The Impact Assessment is fifty pages long; much of which is concerned only with minutiae. However, the headline conclusion … Continue reading →

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DB pensions “evolved in size” – down £425bn in 2022

Posted on February 9, 2024 by henry tapper

  In her preface to the 58 page response given by TPR to parliament’s work and pensions committee, CEO Nausicaa Delfas says that the £425bn loss. a 24% value destruction , was an “evolution”. The “LDI episode” is credited as … Continue reading →

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2022 and gilt yields – how did pension schemes get it so wrong?

Posted on January 16, 2024 by henry tapper

What a wonderful chart. If you do nothing else, play it as a video. Then consider the past two years and ask yourself How did pension schemes get it so wrong? We were given ample warning of the crisis that … Continue reading →

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£626,000,000,000 of our retirement money was lost in the financial markets last year.

Posted on September 26, 2023 by henry tapper

Yes, I know that Pension Scheme liabilities are projected to be lower by more than £626,000,000,000, but you can’t eat projections. The money that was lost by UK DB pensions last year is gone. It has been collected by those … Continue reading →

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The Government had been warned about LDI – it just didn’t listen.

Posted on September 18, 2023 by henry tapper

  We saw the LDI crisis coming – we called it. Lis Truss had not been warned because none of her people were listening. If regulators had seen the Sep22 pensions crisis coming – and Truss had been warned – … Continue reading →

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Time for PPF to lose its pocket money?

Posted on September 12, 2023 by henry tapper

Imagine running a business where you can’t stop charging your customers and your customers can’t stop paying you. That’s the Pension Protection Fund,  a public corporation, set up by the Pensions Act 2004,  that has been protecting members of eligible … Continue reading →

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16bn reasons why USS was saved by the discount rate

Posted on July 27, 2023 by henry tapper

Saved by the discount rate! — Richard Disney (@RichardDisney) July 26, 2023 Richard Disney’s verdict on the state of the USS pension scheme , which as I mentioned last week, is showing that it lost £16bn of its asset base … Continue reading →

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Pension Professor finds trustee investment in Leveraged LDI “speculation” and “ultra vires”

Posted on July 7, 2023 by henry tapper

Philip Bennett, one of Britain’s top pension lawyers , has published a paper prepared for the APL Summer Conference held on 16th June, 2023 Leveraged LDI: Prudent deficit risk management or ultra vires speculation? The paper looks at the underlying … Continue reading →

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