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QE and Private Sector Final Salary schemes


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My drinking buddy, damn good friend and under water Yak fingering compatriot has a good article on the issues within the Private Sector Final Salary sector.



Final salary pension scheme deficits rise to £217 billion

by Alex Steger on May 09, 2012 at 08:04


The collective deficit of the UK’s private sector final salary pension schemes has risen by £11 billion to £217 billion, according to the Pension Protection Fund (PPF).


This rise is a significant increase on the deficit of just over £8 billion this time last year, although it is down from its peak of £255 billion recorded by the PPF last December.


The BBC reported that the National Association of Pension Funds (NAPF) had blamed the huge increase in deficit on the Bank of England's policy of quantitative easing (QE), saying it has raised the cost of paying for pensions.


In March the NAPF said QE had ‘pushed final salary pension funds £90 billion deeper into the red since the second wave of quantitative easing totalling £125 billion started in October 2011.’




Another example of where QE is having a dire effect on values.


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