What Has Happened To Our Pensions? – Ros Altmann

Summary of reasons why pension fund surpluses have disappeared and
are no longer there now that we need them:

1. Nigel Lawson decision to tax pension fund surpluses
2. Successive extra mandatory costs – preservation,
deferred pension revaluation
3. 1995 Pensions Act – MFR, priority order, limited
price indexation
4. Removal of ACT relief
5. Employer contribution holidays
6. Employer use of surpluses for industrial
restructuring
7. Trend to earlier retirement expectations
8. Increasing longevity
9. Actuaries investment and mortality assumptions too
optimistic
10. Benefit enhancements which could not be removed
11. Maturing of schemes (i.e. more pensions needing to be paid as
workers retire)
12. Over-reliance on equity investment
13. Trustees not questioning actuarial advice
14. Plunging stock markets
15. Sharply lower interest rates

via What Has Happened To Our Pensions? – Ros Altmann

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