Tag Archives: Prudence
“Prudence” is foresight and judgement; not “investment orthodoxy”.
The following beautiful comments from Derek Scott are worth reading several times The Scots would say “nae wise” of someone acting without sense — which fits much of today’s investment orthodoxy. PensionsOldie, meanwhile, shows what real wisdom looks like: … Continue reading
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Tagged accountants, Modern Portfolio Material, Prudence, Scottish
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Steve Simkins: LGPS prudence will cost councils dear
As council pension funds prepare to set employer contribution rates for the next three years, excessive levels of prudence could see councils paying more than they need to, writes a partner at Isio. There has been a fundamental shift in … Continue reading
The PPF – a victim of excess tenderness?
The FT sees a backlash from business as Pension Protection Fund’s reserves swell to more than £12bn. The PPF is consulting on halving its levy from £200m to £100m pa, but many are saying this is too little and … Continue reading
Who owns prudence?
Yesterday I wrote about my fears that in the rush to pay for an insurer to buy-out their pension scheme, employers and trustees may be ignoring the interests and interest of members. The “interests” of members may be better served … Continue reading
The reckless prudence of DB funding is immoral.
There are obviously complications and nuances with any pension scheme. But the fact that an erroneous, ill-timed valuation made #USS benefits unaffordable due to unnecessary deficit recovery payments is as black-and-white as any matter of pensions can get https://t.co/H7RJnnObXS — … Continue reading
The cost of prudence – a cautionary tale from the pen of Con Keating
The problem with adding ‘prudence’ to a discount rate is that it does nothing for the uncertainty of the ultimate benefits, but it raises costs in the meantime in a manner which simply cannot be justified. In the case we … Continue reading
The USS needs a plan that we all can understand
I am not smart enough to add much to the academic debate pursued by Professors Michael Bromwich and Dennis Leech , the venerable Con Keating and the scholarly Woon Wong. Readers looking for the views of Ros Altmann can find … Continue reading
Con Keating calls the “obscurantism” of USS
In recent weeks we have seen blogs from Professors Emeritus Michael Bromwich and Dennis Leech both addressing the travails of USS. The blogs can be read here and here respectively. Professor Bromwich’s note is a particularly good attempt at piercing … Continue reading
Reckless Prudence; How to break a pension system
George Cooper has just produced an article, re-published here, which I very much enjoy. I’m not the only one. Every #USS member should read @FixingEconomics‘s “Reckless Prudence: How to break a pension system” (link). Some quotes and comments in the … Continue reading