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The Actuary The magazine of the Institute & Faculty of Actuaries

Funding pensions deficits

As we went to press, consultation had closed on the proposals by the Pensions Regulator in relation to the pace of making good pension fund deficits. Most of the public responses took the view that the proposals were too stringent and inflexible and would run the risk of causing serious damage to the UK economy. Fears were expressed that the estimated £27bn annual cost of the proposals (an amount coincidentally similar to the ‘savings gap’ identified by life insurers) would reduce business investment and cause serious mis-allocation of national resources.

Next steps will be for the regulator to publish a summary of responses received and to consider the scope for enhancing the flexibility of its proposals.