Could the Govt allow DC pot holders to buy public sector pensions to reduce the deficit?

hyubh

michaels said:

Sailtheworld said:

Would anyone really want to swap money they've saved up in a DC scheme for a government promise?

You mean like buying gilts?

Exactly! And the government selling gilts isn't a matter of it getting money for free, is it...?

BobQ

Surely the reason this proposal looks credible is the relatively low returns or losses that private sector employees obtain in the present climate from their DC investments. If and when  we revert to better returns such a scheme will seem less attractive?
Nationalisation of pensions (which is where this proposal leads will not be appreciated by typical Tory voters. For a start the cost administering the public sector schemes is quite low because they are largely unfunded (or more strictly funded in payment by current public sector pension contributions) so in effect all employers need to do is maintain an account where contributions and pesions in payment are more or less in balance. The proposal would see a far greater bureaucracy set up to determine the costs of converrting a DC fund into a DB purchase. I know it is Government backed but how comfortable will those who own a DC Pension fund to see it handed to a private contracor  for a promisery note realising that the Government in the future can change their contributions or benefits?