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UK pension trustees raise alarm on transferring risks offshore

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UK pension trustees raise alarm on transferring risks offshore

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Senior industry professionals say they are worried about the growing involvement of overseas reinsurance firms operating outside UK regulation in corporate pension deals.

Many UK businesses with large pension schemes have offloaded them to life insurance companies. These “buyouts” — of pension plans and the assets backing them — are regarded as the gold standard for safeguarding benefits.

But as higher interest rates improved pension scheme funding levels, prompting a record £50bn of corporate pension deals last year, some UK life insurers have passed on portions of these pension scheme assets and liabilities to reinsurers, often based in Bermuda. Such “funded reinsurance” deals reduce capital requirements for life insurers, making it easier for them to do further deals.

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“We don’t believe we fully understand the risks associated with these offshore insurance companies,” said Natalie Winterfrost, a professional trustee and former chair of the investment committee at The Society of Pension Professionals.

“They will be subject to different and potentially less stringent regulatory oversight.”

She added: “This is where the disquiet comes in for trustees — and their advisers too.” 

Victoria Tillbrook, a UK pensions expert at consultancy PwC, said “more and more” trustees wanted to fully understand developments in what insurers were doing, what was being reinsured and the position of the UK’s Financial Services Compensation Scheme, which compensates customers if a financial business fails.

Melanie Cusack, a professional trustee at Zedra, a corporate services business said: “More questions are being asked: if something happens to the reinsurer, what happens to the members?”

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The Bank of England’s Prudential Regulation Authority, which supervises insurers, declined to comment. 

But it warned the industry last year that relying on funded reinsurance could create a “systemic vulnerability” for the sector, in the case of reinsurers failing and the original life insurers having to pay the pension benefits but without the underlying assets.

The regulator has proposed that insurers limit how much funded reinsurance they do with any one counterparty, among other safeguards.

The Association of British Insurers welcomed the PRA’s acknowledgment of the importance of reinsurance to well-functioning insurance markets, and said the sector gave “vital protection and peace of mind” to pension scheme members and employers.

Privately, insurers stress that funded reinsurance represents a small proportion of pension buyout deals, and that even a large reinsurer failure would be unlikely to create major problems for life insurers. They also point out that the FSCS would step in if there was a failure.

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Disclosure on funded reinsurance is partial. Legal & General did £3.2bn of deals last year, Just Group £0.4bn in the same period and Pension Insurance Corporation a cumulative total of £2.5bn as at June last year, while Rothesay does not do any, according to people familiar with the details. All declined to comment. Aviva and Phoenix Group did not provide figures when asked by the Financial Times. 

Kunal Sood, managing director of defined benefit solutions and reinsurance at Phoenix’s Standard Life business, said the industry had “strict due diligence processes and regulation in place to ensure decisions are managed with policyholders’ interests in mind over the longer term”.

He added funded reinsurance was one of a number of risk management measures used by Phoenix “as part of a wider strategy to maintain a well-diversified, robust balance sheet for policyholder protection”.

The UK Pensions Regulator said it was monitoring market developments and was working on a” number of initiatives” with the Bank of England and the PRA.

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“It’s blood money”: Family of exonerated man in Texas yogurt shop murders speaks out after settlement

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“It’s blood money”: Family of exonerated man in Texas yogurt shop murders speaks out after settlement

The widow and the daughter of Maurice Pierce, one of the four men wrongfully accused in the 1991 Texas yogurt shop murders, have confirmed they signed a multimillion-dollar settlement with the city of Austin.

Kimberli and Marisa Pierce spoke with correspondent Erin Moriarty in a new episode of the podcast “48 Hours: Case by Case.” Moriarty has reported on the yogurt shop murders for over 30 years. 

Maurice Pierce’s widow Kimberli made clear that their priority has never been financial compensation. “It’s blood money for us. He died for this money,” Kimberli Pierce said. “It’s about the reform and the changes that need to happen, not only in Austin, but apparently across the country.”

They also went into great detail about what they believe happened when Maurice Pierce was shot and killed by police in 2010. 

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Maurice Pierce was one of four men, along with Michael Scott, Robert Springsteen and Forrest Welborn, who were wrongfully accused in the murders of four teenage girls in Austin on Dec. 6, 1991. Eliza Thomas, Amy Ayers, and sisters Jennifer and Sarah Harbison were tied up, shot and left inside the yogurt shop as it was set ablaze. 

The four men were exonerated in February after investigators linked another man, Robert Eugene Brashers, to the killings. The city of Austin subsequently offered a $35 million settlement. Because Maurice Pierce died in 2010, his share of $10 million will go to Kimberli and Marisa Pierce.

Eight days after the killings, 16-year-old Maurice Pierce was arrested at a mall, carrying a .22, the same caliber handgun connected to the crime. Kimberli Pierce said police told Maurice Pierce that his gun was the murder weapon. He responded by mentioning his friend Forrest Welborn. Maurice Pierce was then wired up and sent to speak with Welborn, but investigators ultimately determined that Welborn and the others knew nothing about the murders, and no charges were filed at that time.

Marisa Pierce has said there was no evidence when her father was questioned, “only a detective and a narrative, a narrative so completely false. It feels evil.”

From left, Maurice Pierce, Forrest Welborn, Michael Scott and Robert Springsteen were exonerated in February 2026 after investigators linked another man, Robert Eugene Brashers, to the December 1991 killings of four teenage girls in an Austin, Texas, yogurt shop. 

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Nearly eight years later, in 1999, all four men were arrested after Scott and Springsteen confessed to the murders. They later recanted, saying they had been coerced. Springsteen and Scott were tried and convicted, but later those convictions were overturned on constitutional grounds. A subsequent DNA test excluded all four men. Maurice Pierce was never convicted but spent three years in jail before his release in 2003. 

Kimberli Pierce said her husband came home a hardened man. She believes police continued to harass Maurice and their family after his release. In 2010, Maurice Pierce was stopped for a routine traffic stop, fled on foot, and was shot and killed by an Austin police officer who said Pierce had stabbed him with a knife. 

Marisa and Kimberli Pierce told “48 Hours” that they intend to review the circumstances surrounding the night of Maurice Pierce’s death. Marisa Pierce revealed in new, emotional detail that she was on the phone with her father at the time. She believes he panicked and was only trying to get away, not to hurt anyone. She described her father’s last breaths: “And in those last moments, he had just said I’m sorry, I don’t think you’re gonna see me again, and I love you.” 

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“48 Hours” reached out to the Austin Police Department about the Pierces’ allegations of harassment and their questions about Maurice Pierce’s death in 2010. The police department said they had no additional comment.

For the Pierce family, the settlement is a starting point, not an end point. They have put forward seven proposed reforms they hope the city of Austin will approve, including appointing a child advocate whenever a minor is questioned, prohibiting deceptive interrogation tactics, educating juveniles about their rights and establishing accountability measures to address tunnel vision in police investigations.

In a statement shared with “48 Hours,” the Pierces wrote: “Real justice is not only about acknowledging harm after the fact but about creating safeguards that prevent future families from enduring the same pain.”  

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The Maine Town That Actually Wants a Data Center

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This year, Maine nearly became the first state to pass a statewide moratorium on new data centers. But before the law could take effect, supporters of an A.I. data center project in the small town of Jay rallied to fight the ban — and won. So why do residents there want one? We traveled to Jay to find out.

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The Supreme Court says the U.S. can turn away asylum seekers at the border

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The Supreme Court says the U.S. can turn away asylum seekers at the border

The U.S. Supreme Court

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Drew Angerer/AFP via Getty Images

The U.S. Supreme Court on Thursday handed the Trump administration a tool that could make it far more difficult for asylum seekers to enter the United States.

Asylum is a form of legal protection available to people fleeing persecution in their home countries if they meet certain criteria. Under U.S. law, an asylum seeker who “arrives in” the U.S. is entitled to apply for asylum and generally cannot be removed from the country until their asylum application is processed. 

By a 6-3 vote, the high court ruled that federal law allows the government to stop asylum seekers from physically setting foot in the country, effectively keeping them from applying for asylum. 

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The Obama administration was the first to try stemming the flow of asylum seekers that way. But the lower courts blocked the policy on grounds that it violated federal law by denying asylum to people who otherwise would have qualified for it, had they been permitted to literally put one foot over the border.

The Trump administration, however, sought to revive the policy, contending that the lower court’s ruling “deprives the Executive Branch of a critical tool for addressing border surges and preventing overcrowding at ports of entry.” And on Thursday, the Supreme Court agreed.

Writing for the majority, Justice Samuel Alito ruled that because asylum seekers are not in the U.S. when they are turned away at the border, they did not “arrive in” the country. Therefore, he continued, the legal protections for asylum seekers have not kicked in.

Writing for the liberal dissenters, Justice Sonia Sotomayor noted that Border Patrol agents speak with all immigrants at legal entry points and speaking with an agent is effectively the first step in “arriving in” the U.S.

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