'CALPERS-like' institutions could solve pensions crisis

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 ...