Investigation needed to hold those behind UK pension crisis to account
The writer is an independent pension consultant
Within just a few days of September’s “mini” Budget, the UK’s company pension system seemed to be in meltdown, with apocalyptic headlines about scheme solvency, all blamed on so-called liability-driven investment.
To calm things, the Bank of England announced it would buy up to £65bn of gilts — the long-term government IOUs that are the mainstay of UK pension fund investments. Although the nuts and bolts of how LDI works are complex and opaque, the big picture is clear.
This story originally appeared on: Financial Times - Author:John Ralfe
