Work and Pensions written question – answered at on 10 November 2011.
To ask the Secretary of State for Work and Pensions whether he plans to take steps to mitigate the effects of quantitative easing (QE) on (a) pension funds due for statutory triennial valuation during the current phase of QE and (b) other pension funds.
The Pensions Act 2004 introduced a scheme-specific approach to regulating pension scheme funding. The Pensions Regulator, which is operationally independent of Ministers, has made it clear that funding objectives must be set prudently, to uphold stability during various economic climates. The scheme funding regime is sufficiently flexible, in terms of both the form and duration of recovery plans, to support pension schemes in meeting long-term liabilities through fluctuations in the economic cycle. It allows trustees the flexibility to develop prudent funding strategies which take account of the particular circumstances of their particular scheme.
Pension scheme funding strategies are designed to deliver members' benefits over the long-term, during which time there will inevitably be fluctuations in the economic cycle. I understand that the Regulator will continue to apply the system pragmatically looking for outcomes in the best interests of the scheme and sponsor. This will be the case whether schemes are due their triennial valuation during the phase of quantitative easing or at a later date.
Yes1 person thinks so
No0 people think not
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