As regular readers of Pensions Talk may remember, I spend a good deal of my time advising banks and pension scheme trustees on entering into ISDA derivative contracts. Over the last couple of months a new topic has come onto my agenda, namely common investment funds set up by pension schemes which are entering into derivative contracts.
Archive for November, 2010
The rise of the CIF: common investment funds for pension schemes go into the derivatives arena
Monday, 29 November 2010RPI/CPI indexation for pensions – the ASB and the butterfly effect
Thursday, 11 November 2010
Chaos theory tells us that a single occurrence, no matter how small, can change the course of the universe. That might be overstating the case a bit, but it won’t come as news to you that changing from the Retail Prices Index to the Consumer Prices Index as the measurement index for calculating revaluation of deferred pensions and increases to pensions in payment is going to be a bit of a mess. Däna Burstow posted some comments here recently on the potential for the change to create gaps even between different sections of a single pension scheme, based on the wording of scheme rules which were never drafted with this type of change in mind. (more…)
