Barings Asset Management has proposed moving public occupational systems to fully funded institutions run along the line of CALPERS (the Californian Public Employee Retirement Scheme).
The move could have a knock-on effect of reducing the number of defined benefit scheme closures while cutting the cost of pensions provision for the public. In a white paper entitled “Solving the UK’s Pension Problem”, Barings says the change is vital as over £600bn of unfunded public sector occupational pension deficits will be brought on-balance sheets later this year as part of the move towards Whole Government Accounts. This will raise the UK debt-to-GDP ratio to around 90%. Toby Nangle, director of fixed income at Baring who has presented a paper on the subject, says: “Gordon Brown ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes