The Association of Consulting Actuaries has warned the Government that its estimates of costs for the newly proposed Pension Protection Fund are too low.
The ACA suggests that the Government estimate of a £340m to £375m per year levy on pension schemes to protect other pension schemes that "go bust" is way too low particularly in light of such recent revelations such as the US Pension Benefit Agency Defecit of up to £5.2bn.
Our view
'Rock and a hard place' time. Having a safety net fund is good, however it is the rules that are at fault not the safety net. It is the funding requirements that were imposed on pension funds by this Government plus the poor stockmarket that has contributed to this chaos. Having the safety fund will only place a larger burden on more pension funds by having to re-direct much needed contributions to a safety fund.