Pension scheme providers need to learn the lessons of the credit crunch, say Patrick Rudden and David Hutchins of AllianceBernstein
One of the lessons of the credit crunch is that long-term outcomes can be distorted by short-term rewards. This lesson extends beyond sub-prime loans to pension buyouts, whereby an insurance company is paid to take on someone else’s pension commitments.
[This article has been reproduced with permission from Said Business School, University of Oxford. The article originally appeared in the School e-magazine, THEWORLD@OxfordSaid. http://www.sbs.ox.ac.uk]