PPF reveals record pension deficits for UK schemes
by Dr. Ros Altmann
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Commenting on today’s Pension Protection Fund figures showing UK pension scheme deficits have risen to a record level of £325 billion and funding levels on PPF basis have fallen in one year from 98% to around 75%, Dr. Ros Altmann, Saga Director General said: “These latest figures are further evidence of the damage done by the Bank of England’s Quantitative Easing policy. QE is a disaster for company pension funds since the more the Bank prints new money to buy gilts the worse pension deficits become.
“Worryingly, the Bank seems to be in denial about the damage its policies have inflicted on UK pensions. Many companies have already failed due to the increased burdens of pension deficits which has left pension members with reduced pensions in the PPF.
“Other companies are finding the increase in pension burdens are preventing them from obtaining new funding to grow their business.
“Many firms are now being forced to put more money into their pension schemes rather than into their business to create jobs.
“It seems of great concern that the Bank has persisted in buying gilts and worsening pension deficits. This is clearly damaging the UK pension system since both company and private pensions in the UK are underpinned by gilts.”
Dr. Ros Altmann
12 June 2012