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Van derhei presentation for may 20, 2009 perab meetingvanderhei
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2. It analyzes how freezing defined benefit pension plans affects future retirement income and replacement rates, finding median replacement rates are reduced by 1-8% depending on age if plans froze accruals. Enhanced defined contribution plans could financially indemnify some losses.
3. Automatic enrollment and escalation of contributions in defined contribution plans, especially to 10%, significantly increases projected 401k balances at retirement compared to voluntary enrollment plans.
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USS Pension: what’s going on?
The document summarizes the ongoing issues with the USS pension valuation. A Joint Expert Panel (JEP) made recommendations to lower contribution rates but USS rejected most significant recommendations. Contribution rates have increased from 26% to 30.7% despite the JEP findings. UCU and UUK continue negotiations through the JNC but remain in disagreement over contributions. The future of the USS pension remains unresolved with the next JEP report and ongoing negotiations.
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Van derhei presentation for may 20, 2009 perab meetingvanderhei
1. The document discusses the decline of defined benefit pension plans and how to improve retirement income security through modifications to defined contribution plans like automatic enrollment and escalation of contributions.
2. It analyzes how freezing defined benefit pension plans affects future retirement income and replacement rates, finding median replacement rates are reduced by 1-8% depending on age if plans froze accruals. Enhanced defined contribution plans could financially indemnify some losses.
3. Automatic enrollment and escalation of contributions in defined contribution plans, especially to 10%, significantly increases projected 401k balances at retirement compared to voluntary enrollment plans.
This document provides an overview of the current state and challenges facing South Africa's electricity sector. It notes that while Eskom has achieved low prices and high electrification rates, the distribution segment faces significant inefficiencies and financial troubles. It also points out that South Africa now faces a tight supply-demand balance, requiring substantial new investment in generation. The document argues that structural and policy options should be evaluated based on their ability to incentivize this needed investment. It raises concerns about the proposed Electricity Regulation Bill which could undermine regulatory coherence and independence.
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The ACC Board received an award for governance excellence in recognition of significantly improving its performance and relationship with the New Zealand government. Key improvements included introducing a more transparent framework for setting ACC levies and increasing spending on injury prevention. The board's leadership, including Dame Paula Rebstock, has overseen strong financial results and increased public trust in ACC from 63% to its highest level since 2008.
This document summarizes a presentation given by Diane Oakley of the National Institute on Retirement Security (NIRS) about public pension plans. The presentation discusses opportunities and challenges facing public pensions, stakeholders in public pensions, the importance of focusing on retirement policy, and lessons learned from well-funded plans. It provides statistics on the economic impacts of public pension benefits and expenditures. The presentation aims to distinguish facts from assertions and prevent short-sighted policies in public pension discussions.
The return on Varma’s investments was 13.5 per cent, i.e. EUR 6.7 billion, in January–September 2021. Private equity investments yielded nearly 40 per cent and hedge funds more than 11 per cent.
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2) Challenges with high costs of SROI for casework services given the variety of unique outcomes for each client. Standardized impact maps may help address this.
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Reforms of the US$300trn financial system are part of the solution to mobilising capital for sustainable development
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The Inquiry has been established to advance policy options that enhance system effectiveness
Examples of financial policy innovation are growing globally, yet remain fragmented
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This document provides a case study of Saint John Energy's conversion of its defined benefit pension plan to a shared risk pension plan. It discusses the history of SJE's DB plan and the unsustainable contribution requirements that arose due to market declines. Alternatives considered were status quo, reducing benefits, winding up the DB plan, or converting to an SRP. An employee working group helped design the new SRP within contribution limits set by the Board. While reaction wasn't explicitly positive, employees understood the need for change and that the SRP was the best option available. Lessons for others include understanding the problem, being transparent, focusing on long-term sustainability, and considering all stakeholders.
Work and Pensions report into UK corporate DB fundingHenry Tapper
The document summarizes the findings of the Work and Pensions Committee on defined benefit pension schemes in the UK. Key points include: concerns that the new funding regime may require some open schemes to de-risk inappropriately; replacing the Pensions Regulator's objective to protect the Pension Protection Fund with a new objective to protect both past and future benefits; ensuring scheme members' reasonable expectations for benefit enhancements are met from any surplus; and addressing ongoing concerns about governance standards in some schemes.
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The letter from the Minister for Pensions responds to concerns raised by the Work and Pensions Select Committee about the proposed new defined benefit pension scheme funding regime. The Minister agrees that open schemes should not be forced into inappropriate de-risking. As a result, the new regulations will explicitly allow open schemes to consider new entrants and future accruals when setting funding plans. However, the Minister believes a separate regime for open schemes is unnecessary and could enable gaming of the system. The new regulations will link de-risking requirements to scheme maturity and employer covenant strength on a scheme-specific basis.
The document recommends awarding a contract to Organization A to provide carers support services, including administering grants, support/development services, and emergency respite. This follows an evaluation process where 19 providers expressed interest and submitted tenders which were assessed based on quality and price. Organization A's proposal provides the best value over 3 years and meets the criteria, with estimated savings of £27,500 compared to current costs. The services aim to support unpaid carers and enable independent living for those with long-term needs.
First part of the project the main idea is micro financing municipality for the implementation of new technologies or solutions to cut energy costs, minimum 500 k Euro up to 2 mill Euro.
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Using skills - increasing job quality and opportunities for progression - Boy...OECD CFE
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More information: http://oe.cd/CBSVenice2018
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The response provides updates on actions taken to address each recommendation, which include the Department for Work and Pensions publishing a response to its consultation on pension scheme consolidation, collecting additional data from schemes and regulators on LDI usage and resilience, and plans for the Pensions Regulator to improve its digital capabilities and oversight of LDI governance.
This document discusses operationalizing social return on investment (SROI) for advice services. SROI is an outcomes-based evaluation method that assigns financial values to social, environmental, and economic outcomes to calculate a ratio of benefits to costs. The document discusses:
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2) Challenges with high costs of SROI for casework services given the variety of unique outcomes for each client. Standardized impact maps may help address this.
3) Issues with stakeholder perspectives influencing the valuation of outcomes and challenges drawing boundaries around stakeholders.
4) Adapting research tools
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Reforms of the US$300trn financial system are part of the solution to mobilising capital for sustainable development
These interventions are needed to complement public finance and action in the real economy
The Inquiry has been established to advance policy options that enhance system effectiveness
Examples of financial policy innovation are growing globally, yet remain fragmented
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The document discusses two ongoing initiatives at the Global Fund: the Architecture Review and National Strategy Applications. The Architecture Review aims to simplify the Global Fund's processes and support continued growth through a "single stream of funding" model. The National Strategy Applications initiative seeks to increase country ownership by basing applications on validated national strategies. It outlines plans for a first learning wave of NSA applications to begin in 2009 to test the approach before broader implementation.
Kuching | Jan-15 | Policy Instruments in Facilitating Renewable Energy Off-g...Smart Villages
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This paper is intended to be a guide in the process of evaluating a project. Such evaluation includes an assessment of its cost structure through the LCC approach (also called total cost of ownership or TCO) and an assessment of financing options. It will be demonstrated and explained that the most profitable financing is not always the most appropriate one.
PT SMI's perspective on energy efficiency: Faaris Pranawa, PTSMI.pdfOECD Environment
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1. USS pensions: what now?
Andrew Chitty, Sussex UCU Exec
12th February 2020 to Sussex UCU members
Sussex UCU Pensions Work Group:
Andrew Chitty,
Jackie Grant
Sarah King
2. • Reminder of JEP1 + current valuation
• Summary of JEP2
• Dual Discount proposal
• Context: Jane Hutton, Frank Field, new Chair
• What has action has achieved
• What's happening now? Why more action?
Appendix: Sussex and references.
USS: University Superannuation Scheme
3. USS should give serious
consideration p 56
Mitigate against Test 1
If all 6 applied to 2017
Deficit = £4.0 bn
Members = 9.1%
Employers = 20.1%
If all 6 applied to 2018
Surplus = £0.6 bn
Members = 7.8%
Employers = 17.7%
✔✔
Reminder: JEP1 Sep 18
4. Current valuation: Option 3 still uses Test 1
• Option 3: 21.1% Employers 9.6% Members.
October 2021: 23.7%, 11.0% (unless superseded by 2020 valuation)
• TPR, Aug 2019 on Option 3:
• Sussex response, Council March 2019: 'The University of Sussex is disappointed
that the recommendations of the Joint Expert Panel were not acceptable to USS.'
• UUK spokesperson Adam Tickell, July 2019, FT 'But Prof Tickell, who disagreed
with the union's interpretation of how the review's recommendations should be
applied, said the proposal supported by employers 'substantially' meets the
recommendations of the independent Joint Expert Panel.'
5. Joint Expert Panel 2nd report, JEP 2, Dec 2019
'Our conclusions and recommendations should be considered as a package which,
taken together, can provide a way for the interested parties to work together to
secure the future of the Scheme and a more holistic approach to the problems that
arise. '
'the Panel has serious concerns that without a clear commitment to action, the
Scheme will end up in the same place again'
'The Panel believes that a failure to take forward the recommendations in this report
would mark a failure for members, employers and the sector. '
'the Panel wishes to propose that all of the interested parties commit to a 'road map'
'Three key areas that should be addressed are:
• governance, including the role of the JNC;
• the 2020 valuation and beyond; and
• the long-term strategy for the Scheme.' Extracts from
conclusions p 93-94
6. JEP2 (cont.)
On JEP 1: 'The failure to collectively go forward with these
recommendations [JEP1] was, in the Panel's view, a missed opportunity to
resolve the dispute and provide room for a discussion of the longer-term
issues facing the Scheme.' (p4)
On valuation governance: 'There is a view that the Scheme's valuation
governance does not work well and is no longer fit for purpose. The Panel
shares this view.' (p38)
On Test 1: 'The Panel could not identify any circumstances in which it
believed that Test 1 should be the primary driver of funding and
investment strategy.' (p56)
On UCU: 'As the qualitative research amongst members and non-members
demonstrates, the information UCU provides is valued and trusted by
union and non-union members alike.' (p52)
7. JEP 2: Dual Discount rate for valuation
USS Modelled
• Gilts + 2.5%, gilts +0.75%
~ 2018 valuation
• Gilts + 3.0%, gilts+0.75%
• Gilts +3.5%, gilts +0.75
FSC as low as 23.8%
Option 3: FSC 28.7%
'The Panel has not sought to infer any particular investment strategy…
the Panel strongly urges the Stakeholders and Trustee to work together to actively consider the approach
presented by the Panel.'
8. Andrew Chitty: JEP2's dual discount rate proposal for USS: an analysis and evaluation
https://medium.com/ussbriefs/jep2s-dual-discount-rate-proposal-for-uss-an-analysis-and-evaluation-eaffaef6ff64
9. JEP 2: Dual Discount problems?
JEP2 recommend: examination of impact and
unintended consequences
• higher earners leaving the Scheme because of increased
contributions,
• cliff edges between contribution levels which could leave
Scheme members worse-off
• any adverse intergenerational impacts.
Andrew Chitty in analysis
• discount rates tethered to the long-dated gilt yield.
• Potential for negative feedback loop due to increasing
rates increasing opt-out, increasing rates
10. Two proposals for Dual Discount Rate problems
Andrew Chitty: JEP2's dual discount rate proposal for USS: an analysis and evaluation
• Untethering pre-retirement rate from gilt yield
Pre-retirement discount rate using a transparent version of the Fundamental Building
Blocks approach, i.e. one in which the data and calculation method are made public so
that in principle anyone could check the calculations.
• Five year rule for use of post-retirement rate
At any given time only that part of the fund associated with liabilities which will fall due
within the following 5 years would be invested in a self-sufficiency portfolio, while the
rest would remain in a return-seeking portfolio
11. JEP 2: first hurdle
Implementing JEP 2: road Map, at pace, 2020 valuation
5 facilitated tripartite talks in January.
Start by agreeing Scheme Purpose Statement and Shared Valuation Principles
JEP recommended statement of purpose: 'To help members achieve a financially secure
retirement and to instil trust and confidence in the Scheme, while providing an excellent
service to members and employers that supports the long-term needs of the HE sector.'
Stakeholders' statement of purpose: 'To provide a financially secure future and retirement for
scheme members and their families, and support the long-term needs of the HE sector.'
USS Trustee statement of purpose: 'Working with Higher Education employers to build a
secure financial future for our members and their families.'
✘ No agreement on shared purpose statement reached in tri-partite talks
Joanne Segars JEP chair
12. JEP 2: Road map
Five tripartite talks: short summaries agreed and published
at ussjep.org.uk
Valuation Discussion Forum established
Strategic Discussion Forum to be created
JEP proposals
- Dual Discount Rate proposal for valuation but NOT investment strategy
- Radical ideas to replace JNC or add support, independence, remove chair's vote
- Replace UUK (UCEA?). Join Pay + Pensions negotiations together
- Mutuality? Strength of covenant? Ensure open scheme? All reduce risk
- How to consult members and rebuild trust?
- Address 15% opt-out rate (primarily due to unaffordability)
Joanne Segars
JEP chair
13. ContextFT Editorial Board, 29 November 2019
'An independent inquiry should scrutinise the handling of the USS valuation by all
key players, including the Pensions Regulator'
The Pension Regulator, 13 December 2019
'The JEP report's high-level recommendations, including for effective governance
and clear communication during the valuation process, align with our views.'
'The adoption of a dual discount rate broadly aligns with our proposed approach
for the new defined benefit (DB) funding code'
TPR are attending Stochastic Modelling Group JNC meetings
Sam Marsh
JNC UCU Negotiator
14. UUK: First phase of consultation with employers on JEP2, deadline 28 Feb
- IDS staff consulted and response will be shared
- Sussex staff not yet consulted, no promise to share response
- UUK selectively quote JEP2 discussion of JEP1
Jane Hutton
Case for unlawful dismissal.
UUK no comment UCU: release legal documents
Academics for Pension Justice
QC 'good grounds to take this matter to court based on breach of trust'.
UCU Dec 2019 SHESC motion carried to consider launching legal challenge
New USS Trustee Chair: Kate Barker August 2020,
British Coal Staff Superannuation Scheme, Council Oxford University
Chair of Governors Anglia Ruskin University.
Jane Hutton
Kate Barker
Context
15. What has action achieved on USS?
2018-19: Two excellent unanimous JEP reports
2019: Increase of national support + media coverage = pressure
5 tripartite talks: UUK, UCU, USS, chair JEP: 'positive spirit'
• 'Valuation methodology' and 'Strategic' discussion forums established
• Options paper on JNC to be developed, presentation on opt-outs from USS
• Trustee's review of valuation methodology ongoing
• TPR attending JNC stochastic modelling group
UUK are consulting employers
• On JEP2 (in 3 phases of consultation)
• On covering additional pensions contributions
IDS are consulting staff on UUK consultation
16. What is happening now? Why more action?
• Employers should cover the cost of the flawed valuation methodology
• Re-ballot. Now: 74 institutions in Pay and Pensions disputes (52 in Pensions)
• UUK did not call strongly enough for JEP1 in 2019
• JEP2 is more complex, structural and cultural = challenging
• Employers must publicly call for JEP2 must be implemented 'as a package'
Is the only way to push for this with pressure of action?
Will an offer be made in time?
Will it be put to members?
How will UUK play this?
Will there be conditions?
Will there be last minute changes as in 2019?
How will it be linked with UCEA dispute?
17. Appendix on Sussex
• Sussex: VC Adam Tickell is chair of Employers Pension Forum
• Sussex: Director of Finance Alan Spencer is on the board of Employers Pension
Forum
• Sussex: Council member Kristin Baker is member of Board of The Pension Regulator
• Sussex Institutional Response to 2017 Valuation
• 'We question the benefit of continuing a DB portion…. be clearer the DB element goes now'
• Sussex Institutional Response to 2018 Valuation
• 'The University of Sussex is disappointed that the recommendations of the Joint Expert Panel
were not acceptable to USS.'
• 'Broadly the University of Sussex accepts the valuation assumptions proposed by the trustee'
• 'The approach in assuming no asset outperformance on investments is in stark contradiction to
previous practice: it is unrealistic and out of step with practice on other scheme valuations.'
• Subsequent responses are all short agreements, compiled by Sussex UCU FOIs
https://sussexuss.wixsite.com/responses
18. Appendix on Sussex and Climate change
• Sussex declares climate emergency, 1 August 2019, VC Adam Tickell stating
that 'unless the higher education sector works together to address the
problem at every possible juncture, we will be failing the young people who
turn to us – and who need us to protect their futures.'
• Sussex have fully divested and now have £175 million with Lion Trust
Sustainable trust
• USS still have £1.3 billion in fossil fuel companies
• USS have consistently and repeatedly voted against share holder proposals for
Royal Dutch Shell to set targets to below 2°C as aligned with the goal of the
Paris Climate Agreement.
• Sussex did not respond to USS new Statement of Investment Principles
consultation earlier this year.
https://divestuss.org
19. Questions? And references
• A. Chitty, USS related materials back to 2014: http://ussmaterials.blogspot.com
• TPR support for JEP2 https://www.thepensionsregulator.gov.uk/en/media-hub/press-
releases/joint-expert-panel-report-on-uss-statement-from-tpr
• USS timeline for 2020 valuation https://www.uss.co.uk/how-uss-is-run/2020-
valuation/2020-valuation-timeline
• JEP2 https://ussjep.org.uk
• USS Employers (run by UUK) https://www.ussemployers.org.uk
• Employers Pension Forum https://www.employerspensionsforum.co.uk
• USS https://www.uss.co.uk
• UCU https://www.ucu.org.uk
• Sussex annoucements https://www.sussex.ac.uk/news/all/?page=28&id=47898 and
http://www.sussex.ac.uk/broadcast/read/42450