Defined Benefit Pension Schemes, also known as final salary schemes ( FSS) in the UK have a surplus of £160b, which is held in low risk/low return investments. The surplus is above and beyond that which companies need to meet current requirements.
Under current rules this surplus cannot invested in the wider economy.
Step forward the Government ( 2TK and Rachel from accounts) who have met with the bosses of companies such as Tesco, BT and Unilever, to propose a consultation in order to change the rules, in order to unlock £££bs for investment in the economy, the company or pension schemes.
Now, I’m no economist, but then neither is 2TK or Rachel, but it seems to me that I’ve heard of a few instances of people’s pensions being ‘repurposed’ and I can’t recall a single instance when it ended well.
I may have got it wrong, as I say I’m no economist, but if it isn’t broken don’t fix it, please.
Nominated by Jeezum Priest.