Engineering firm Babcock International has finalised a groundbreaking pensions deal to cap the risk of its retirees living longer than expected, in a move which could put pressure on other companies with big pension deficits.
Dafny: Health insurance is certainly a risk management tool as well — at least when it doesn't have features like annual or lifetime payout maxima [thereby capping the risk payout.] In the US, insurance also plays two other key roles.
However attractive the upside, it was effectively capped, while the risk to my finances, reputation, and time was beyond my control.
18 (75%) out of the 24 responding national delegates reported having national/sub-national guidelines specifically for the management of CAP at the time of the survey, of which, seven (39%) included recommendations on the differential diagnosis, treatment and management of TB and seven the recommendation on the use of FQs in CAP and the risk of FQ-resistant TB in misdiagnosed patients.
Your net result will be the difference in performance between small-cap and large-cap funds, without the risk of major loss in a broad market decline.
Many will want to cap the net risk of a basket of exposures, if not individual risks such as fire or fraud.
Acknowledging this, the PPF will set a cap on the risk-based levy as a share of individual schemes' liabilities.The big worry is that the PPF is being asked to do too much with too little.
It adds: "The UK government accepts that, in setting a cap, the residual risk, of the very worst-case scenarios where actual cost might exceed the cap, is being borne by the government".
If the Greens and the SPD campaign against the cap, they risk the wrath of voters who actually pay for it.
