AGEING POPULATION, PENSION FUNDS AND SUSTAINABLE INVESTMENT: EMERGING PRESENT AND FUTURE LEGAL ISSUES Paul Q Watchman TBLI...
FAILING TO ACT IN THE BEST INTERESTS OF ALL BENEFICIARIES <ul><li>Core Fiduciary Duty of Pension Fund Trustees to act in t...
STATE AND PUBLIC SECTOR PENSIONS <ul><li>Status  Pensions: MPs and Judges </li></ul><ul><li>Public Sector Non-status Pensi...
PRIVATE SECTOR PENSION FUNDS <ul><li>Defined Benefits </li></ul><ul><li>Defined Contributions </li></ul><ul><li>Funded by ...
RESPONSES TO PENSION CRISIS <ul><li>Reduce benefits </li></ul><ul><li>Move to average earnings from final earnings </li></...
Challenging the State and Public Sector  <ul><li>Limited remedies: judicial review and human rights complaints </li></ul><...
Recent human rights challenge to state pension cap <ul><li>Kalkov v. Bulgaria [2011] ECHR 1806 unsuccessful  European Cour...
RECENT LEGAL CHALLENGES TO PENSION MANAGEMENT AND REFORM <ul><li>DWP Pensions Ombudsman  (6.11. 2011) s successful apeal t...
MORE RECENT LEGAL CHALLENGES <ul><li>Trade Unions  JR challenge switch from RPI to Consumer Prices Index (2011)as being un...
PENSION FUNDS US SHAREHOLDER DERIVATIVE ACTION <ul><li>bp </li></ul><ul><li>RBS </li></ul><ul><li>Wells Fargo June 22 two ...
PENSION FUNDS, PENSION FUND TRUSTEES  AND US CLASS ACTIONS <ul><li>Detroit General Retirement pension fund trustees sued b...
PENSION FUNDS SUE ASSET MANAGERS
PENSION FUND BENEFICIARIES SUE PENSION FUND TRUSTEES
Upcoming SlideShare
Loading in...5
×

Paul Watchman

428

Published on

TBLI CONFERENCE™ EUROPE 2011- London - United Kingdom

TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
428
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Paul Watchman

  1. 1. AGEING POPULATION, PENSION FUNDS AND SUSTAINABLE INVESTMENT: EMERGING PRESENT AND FUTURE LEGAL ISSUES Paul Q Watchman TBLI European Conference November 2011
  2. 2. FAILING TO ACT IN THE BEST INTERESTS OF ALL BENEFICIARIES <ul><li>Core Fiduciary Duty of Pension Fund Trustees to act in the best interests of all beneficiaries </li></ul><ul><li>Structural conflict between present and future contributors and beneficiaries </li></ul><ul><li>Exacerbated by ageing population </li></ul><ul><li>Need to preserve the pension fund and investment industry </li></ul><ul><li>Need for long-term investment sustainability </li></ul>
  3. 3. STATE AND PUBLIC SECTOR PENSIONS <ul><li>Status Pensions: MPs and Judges </li></ul><ul><li>Public Sector Non-status Pensions: NHS, Armed Forces, Police, Firemen, Teachers, Local Authority </li></ul><ul><li>Hybrid Pension Funds: USS </li></ul><ul><li>Funded by general taxation not pension pot </li></ul><ul><li>Auto-enrolement </li></ul>
  4. 4. PRIVATE SECTOR PENSION FUNDS <ul><li>Defined Benefits </li></ul><ul><li>Defined Contributions </li></ul><ul><li>Funded by pension or employer/employee contributions </li></ul><ul><li>Fiduciary Duties of Pension Fund Trustees </li></ul><ul><li>Asset Management </li></ul>
  5. 5. RESPONSES TO PENSION CRISIS <ul><li>Reduce benefits </li></ul><ul><li>Move to average earnings from final earnings </li></ul><ul><li>Increase contributions </li></ul><ul><li>Involuntary contributions </li></ul><ul><li>Increase age entitlement </li></ul><ul><li>End discrimination by forcing up retirement age for women </li></ul>
  6. 6. Challenging the State and Public Sector <ul><li>Limited remedies: judicial review and human rights complaints </li></ul><ul><li>Remedies very limited </li></ul><ul><li>Not based on merits but procedural default or irrational exercise of discretion </li></ul><ul><li>National Courts and Human Rights Courts regard their role as being very limited in respect of policy, particularly taxation and state benefits </li></ul>
  7. 7. Recent human rights challenge to state pension cap <ul><li>Kalkov v. Bulgaria [2011] ECHR 1806 unsuccessful European Court of Human Rights challenge by retired air force based on Articles 1 and 14 of the ECHR Protocol </li></ul><ul><li>Statutory pension cap on the amount of pension to be paid in public interest not unlawful deprivation of possessions </li></ul><ul><li>Pension cap exemption discrimination for status groups not unlawful </li></ul>
  8. 8. RECENT LEGAL CHALLENGES TO PENSION MANAGEMENT AND REFORM <ul><li>DWP Pensions Ombudsman (6.11. 2011) s successful apeal to Court of Appeal action re. irrational rejection of Pensions Ombudsman finding of maladministration and injustice in treatment of 125,000 misled occupational pension fund scheme members </li></ul><ul><li>Prudential Staff Pensions Ltd. v. The Prudential Company 2011: employer discretionary power not fiduciary duty but good faith duty implied but irrationality or perversity must be proved </li></ul>
  9. 9. MORE RECENT LEGAL CHALLENGES <ul><li>Trade Unions JR challenge switch from RPI to Consumer Prices Index (2011)as being unlawful (ultra vires) being beyond the statutory power of the Minister </li></ul><ul><li>Saving estimated by Lord Hutton for unfunded pension schemes £1.8B. By 2015-16 and effectively cutting unfunded pension scheme expenditure by an estimated 20% by 2060. </li></ul><ul><li>BA pensioners switch from RPI to CPI </li></ul>
  10. 10. PENSION FUNDS US SHAREHOLDER DERIVATIVE ACTION <ul><li>bp </li></ul><ul><li>RBS </li></ul><ul><li>Wells Fargo June 22 two US pension funds file derivative actions for $15B based on failure to address mortgage documentations issues properly </li></ul><ul><li>Goldman Sachs: CDOs and no duty far less fiduciary duty owed to clients </li></ul>
  11. 11. PENSION FUNDS, PENSION FUND TRUSTEES AND US CLASS ACTIONS <ul><li>Detroit General Retirement pension fund trustees sued by class action on behalf of over 9000 pension plan participants and beneficiaries for £100m losses (6.11.2011) </li></ul>
  12. 12. PENSION FUNDS SUE ASSET MANAGERS
  13. 13. PENSION FUND BENEFICIARIES SUE PENSION FUND TRUSTEES
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×