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Chancellor Rachel Reeves wants to release billions of pounds from the British pension system defined in the amount of 1.2 Deliches of 1.2 Tither in Pound in his last attempt to start growth.
The Government is prepared to allow companies to access the excess scheme – which are estimated to be worth around £ 100 billion – to encourage them to invest in more risky assets, according to people who have been referred to the Canceler’s thinking.
“The devil is in detail, but we are positively inclined,” said one government insider.
The treasury refused to comment on the discussions-which first reported Sky News-Ali city sources said that Varun Chandra, the best business advisor Sir Keir Starmer, discussed the possibility of using the so-called excess to strengthen the economy.
Change focus to DB Scheme comes as the chancellor prepares for her speech on Wednesday. Pension experts estimate that companies would allow the excess scheme to access up to £ 100 billion to invest.
The government has previously focused the review of its pensions on the consolidation of a defined contribution (DC) and the pension property of local government. Review In pensions adequacy – for which the government hoped would encourage more investments in the UK – has been delayed indefinitely.
In an interview with the Financial Times in November, former Emma Reynolds’ pension minister said she reformed priority to reform a DC job scheme because it was “growth”.
She noted that most corporate DB pension schemes were closed to new members and “naturally had fewer long time frames” because schemes move to less risky assets while reducing or selling their pension obligations to an insurance company.
However, insiders in the industry said that radical improvement in the position of financing of the DB pension schemes in recent years after the increase in government bond yields meant that many are now able to take over higher risk, if the rules have enabled the company and members of the scheme to benefit from this.
“The reason why the Government announcements referred to DC and the pension scheme of local government is that they did not really understand DB and think that he is too big to touch. But implications do not touch him worse and I think they understand it now,” said the chairman of the pension scheme with more billion pounds.
David Lane, CEO in TPT Reatting Rociomins managed by DB and DC pensions, said that companies approach the Vis scheme “is likely to be a more effective way of directing the pension assets in the British economy and then some of the initiatives for consolidation that have an initiative.
Access to surplus scheme could slow down the pace in which pension funds transfer their pension obligations to insurance companies, with about 50 billion assets transferred to so -called transactions with scattered annuite in each of the last two years, according to Pensionsia WTW consultation.
Stopping this trend in the long run could help support the state bonds and capital markets in the UK, as insurance companies usually sell tops and invest in larger corporate bonds – many of which are abroad – as well as infrastructure to make their profit.
Zoe Alexander, Director of the Commercial Group for Pensions and Lifetime Rescue, said she supported the excess of release, with the right protection to ensure that the benefits of members are safe.
“The lowering of the legislative threshold for the allowance of the return of excess can potentially stimulate guardians (in cooperation with their employers) to adopt an more ambitious way of thinking and taking on a slightly more risky investment strategy for their DB property, including greater investment in the UK property,” she said.
