You may be aware that this Friday, the Centre for Policy Studies publishes The £100 billion negotiations by leading pensions expert Michael Johnson. Johnson puts forward proposals on how the Coalition should pursue negotiations which will bring public and private sector pensions into balance, with results that would be sustainable, fair and affordable.
Ahead of the report Edmund Truell, Founder, Pension Corporation has commented:
“More generally, there are significant savings for the taxpayer to be made across the wider public sector pension reforms, primarily through the creation of fewer, but larger, funded pension funds, using economies of scale to save billions of pounds in actuarial consultancy and investment management fees. This has been successfully trialled in other countries including Canada and Denmark and works to the benefit of all – the pensioners get their accrued benefits and the taxpayer saves vast amounts of money. At the same time, these funds should be allowed to invest in long-term infrastructure projects to the benefit of society more widely.
“There are large numbers of funded public sector pension funds which are facing an uncertain future as the government moves forward on its pledge to abolish significant numbers of quangos. We are therefore seeing increasing numbers of them interested in pension insurance buyouts, and buy-ins, as a means of securing their members’ benefits for the long-term. This is on top of increased demand from the private sector, and we are currently involved in processes totalling almost £10 billion.”
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