Summary
Implications: 1.Companies collapse - workers seek recourse by way of the Pension Protection Fund. 2.Pension Protection Fund surpluses ar falling - an immediate Impact for Employers an Employees. 3.Major cause of disruption is the reliance of Stock Market Performance, which is NOT likely to be favorable to any party. 4.Final closure will be the fact the money pool will not be available for employeees , who are dependent upon upon benefits. 5. Identified Public entities shoud, indeed, seek Alternative Investment vehicles for funding - If provisions are provided for the same by the Authorities.
Analysis
Commentary:
1.Many major pension funds have been supported by investments in property and equity investments. Poor portfolio management. Innovation is the key concept and appears to have been avoided!!!!!
2.Performance figures would support such a statement without doubt.
Historical vehicles may not be valid for the current economic/financial
scenerio.
3.Accountablilty should be assessed both by the Board of Trustees and their related relationship with chosen Investment Advisors.
4.The Trustees have spend a small fortune on fees without proper advice - political adventurism , at best.
5.The question should have surfaced as to "How much should have been
allocated to cash, equity stock , bonds and Alternatives???
