Gov't must not 'subsume' contracting-out savings

In a paper: ‘The past, present and future of contracting out’, the ABI argues the decision to abolish contracting-out for defined contribution (DC) pensions in around 2012 leaves a “black hole” in the government’s expenditure forecasts for pension reform. There is uncertainty at present as to how this ‘cashflow benefit’ will be used, but the ABI claims while some suggest the money should be used to improve current state pensions, there is “a growing consensus that this would be an inappropriate direct transfer of resources from the pension funds of working people to the current pensions o...