Overview
As pension funds, we continue to survive in difficult times. Investment markets continue to be volatile and liability values rise with low bond yields – QEII will not help – and increasing longevity. Defined benefit pension schemes in the private sector are under pressure with the prospects of rising maturity and closure, even wind up. Public sector schemes face similar pressures to become sustainable and the LGPS, as a funded scheme, has suffered from the same volatility in investment markets and the implications of members opting out.
Perhaps by next March the prospects will look more encouraging but it seems more likely we are in for a long haul. Increasingly, many of the past assumptions and assertions on which we have built our investment strategies need to be re-examined as do the ways in which we manage investments and the advice we rely upon.
Relying on advice is not enough though and those responsible for the administration of pension funds must be alert to current issues if they are to fulfil their obligations. That requires the right knowledge and skills and the ability to respond to future regulation and change.
Perhaps by next March the prospects will look more encouraging but it seems more likely we are in for a long haul. Increasingly, many of the past assumptions and assertions on which we have built our investment strategies need to be re-examined as do the ways in which we manage investments and the advice we rely upon.
Relying on advice is not enough though and those responsible for the administration of pension funds must be alert to current issues if they are to fulfil their obligations. That requires the right knowledge and skills and the ability to respond to future regulation and change.
