Major BoE Intervention To Help DB Pensions

GSP

https://www.express.co.uk/finance/personalfinance/1675372/Bank-of-England-pensions-defined-benefit-schemes-financial-crisis-Kwasi-Kwarteng

Seems nothing is off the table at the moment.

In addition if DC pensions keep going down, how are pensioners going to live?

My, how things have got to this in ten months after the markets were quite buoyant. 

Steve_666_

GSP said:

https://www.express.co.uk/finance/personalfinance/1675372/Bank-of-England-pensions-defined-benefit-schemes-financial-crisis-Kwasi-Kwarteng

Seems nothing is off the table at the moment.

In addition if DC pensions keep going down, how are pensioners going to live?

My, how things have got to this in ten months after the markets were quite buoyant. 

Gross mismanagement of the economy by government

Albermarle

GSP said:

https://www.express.co.uk/finance/personalfinance/1675372/Bank-of-England-pensions-defined-benefit-schemes-financial-crisis-Kwasi-Kwarteng

Seems nothing is off the table at the moment.

In addition if DC pensions keep going down, how are pensioners going to live?

My, how things have got to this in ten months after the markets were quite buoyant. 

DC pensions always go up and down. However the recent drops are not that large(for most) compared to some past periods. Over recent years they have grown a lot, so overall it is not too bad, but high inflation remains a worry.

biscan25

I'm not convinced this is to help DB pensions.
They are not doing too badly as in general rising interest rates are good for DB schemes.
For those 100% hedged to interest rates, there have been some alarming collateral calls, and in general schemes have met these by selling liquid assets such as bonds and equity.

Bimbly

Sources are coming out to say this is the case. Here's one:
https://twitter.com/EdConwaySky/status/1575128310740389889?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1575128310740389889%7Ctwgr%5E58124ecacdec696d1ee326127270e8c07cf5e042%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.theguardian.com%2Fpolitics%2Flive%2F2022%2Fsep%2F28%2Fkeir-starmer-mini-budget-truss-kwarteng-labour-conference-rayner-uk-politics-news-live

DaveMcG

biscan25 said:

I'm not convinced this is to help DB pensions.
They are not doing too badly as in general rising interest rates are good for DB schemes.
For those 100% hedged to interest rates, there have been some alarming collateral calls, and in general schemes have met these by selling liquid assets such as bonds and equity.

I agree - the fall in liabilities due to increased discount rate would surely compensate for the losses on the bonds?  If schemes that weren't already in trouble, were affected to the extent that solvency was in question, some sackings at the Pensions Regulator are in order.

Audaxer

Albermarle said:

GSP said:

https://www.express.co.uk/finance/personalfinance/1675372/Bank-of-England-pensions-defined-benefit-schemes-financial-crisis-Kwasi-Kwarteng

Seems nothing is off the table at the moment.

In addition if DC pensions keep going down, how are pensioners going to live?

My, how things have got to this in ten months after the markets were quite buoyant. 

DC pensions always go up and down. However the recent drops are not that large(for most) compared to some past periods. Over recent years they have grown a lot, so overall it is not too bad, but high inflation remains a worry.

I agree and am not overly concerned about equities having fallen in value, but I am concerned as to whether bond funds will recover their losses. Hopefully the BoE intervention will help?

GSP

Apparently.

Mass insolvency of pension funds would have happened TODAY - Bank of England 'had to act'

https://www.express.co.uk/news/politics/1675314/Bank-of-England-long-term-debt-bonds-pound-sterling-uk-financial-crisis-latest-update

Notepad_Phil

GSP said:

Apparently.

Mass insolvency of pension funds would have happened TODAY - Bank of England 'had to act'

https://www.express.co.uk/news/politics/1675314/Bank-of-England-long-term-debt-bonds-pound-sterling-uk-financial-crisis-latest-update

You missed the "it has been claimed". It's just a story based on the tweet from Sky commentator mentioned above.

Sunnylifeover50plan

I wonder which pension funds? less info is more damaging at times.

Albermarle

Notepad_Phil said:

GSP said:

Apparently.

Mass insolvency of pension funds would have happened TODAY - Bank of England 'had to act'

https://www.express.co.uk/news/politics/1675314/Bank-of-England-long-term-debt-bonds-pound-sterling-uk-financial-crisis-latest-update

You missed the "it has been claimed". It's just a story based on the tweet from Sky commentator mentioned above.

And it is in The Daily Express, so........