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Chancellor Rachel Reeves is trying to release billions of pounds from the defined pension system with the United Kingdom, which amounts to 1.2 billion pounds Sterling, as part of her last attempt to revive growth.
The government is preparing to allow companies to access the plan surpluses – estimated at around 100 billion pounds sterling – to encourage them to invest in more risky assets, according to people informed of the Chancellor’s reflection.
“The devil hides in detail, but we are inclined to the positive,” said a member of the government.
The Treasury refused to comment on the discussions- reported for the first time by Sky News- but Sources de la City said that Varun Chandra, Sir Keir Starmer’s main sales advisor, had discussed the possibility of using SOI- saying surpluses to stimulate the economy.
A change of orientation towards defined benefits of benefits occurs while the Chancellor is preparing for her growth speech Wednesday. Retirement experts believe that enabling companies to access the surpluses of the diets could unlock up to 100 billion pounds sterling for investment.
The government had previously focused its revision of pensions on the consolidation of retirement assets with defined contributions (CD) and local authorities. A review The adequacy of pensions-which the government hoped to attract more investments in the United Kingdom-has been delayed indefinitely.
In an interview with the Financial Times in November, the former Minister of Pension Emma Reynolds said that she had given priority to the reform of employment plans in the states in Washington because it was “where growth ”.
She pointed out that the majority of retirement schemes with defined corporate benefits were closed to new members and “naturally had a shorter period of time”, because the diets turned to less risky assets when they ended their activities or sold their retirement obligations to an insurance company.
However, according to experts in the sector, the radical improvement in the financing situation of retirement plans defined in recent years, following an increase in yields of state obligations, meant that many of them were now in Measurement of taking more risks, if the rules allow companies and affiliates of the regimes to benefit from IL.
“The reason why the government’s announcements focused on the retirement plan with determined contributions and the local government’s pension plan is that they have not really understood the pension plan and think that it is too important for touch it. . . But the consequences of not touching it are worse for the government and I think it realizes it now, “said the president of a retirement regime with defined benefits of several billion pounds sterling.
David Lane, director general of TPT withdrawal solutions which manages DB and DC pensions, said that allowing companies to access the surpluses of diets was “probably a more effective means of channeling retirement assets to the British economy than some Consolidation initiatives that have been implemented. been announced. . . It is direct if the employer reinvests this money in his business ”.
Access to the surpluses of the plans could slow down the pace to which the pension funds are unloading their obligations in terms of retirement to insurance companies, with around 50 billion pounds sterling of assets transferred within the framework of transactions of annuities Say grouped in each of the last two years, according to WTW retirement consulting firm.
Putting an end to this trend could contribute to supporting the markets of state and stocks of the United Kingdom in the long term, because insurance companies generally sell Gilts and invest in higher return business bonds – many of which are foreign – as well as in infrastructure to make their profits.
Zoe Alexander, director of the Professional Pensions Group and Lifetime Savings Association, said that she was supporting the release of surpluses, with the appropriate protections in place to guarantee the security of members’ services.
“Lowering the legislative threshold authorizing the return of surpluses could potentially encourage administrators (in collaboration with their employers) to adopt a more ambitious state of mind and to adopt investment strategies slightly risky for their db assets, including a greater investment in British assets, “she said.
