{"id":196300,"date":"2025-06-19T05:13:12","date_gmt":"2025-06-19T05:13:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/196300\/"},"modified":"2025-06-19T05:13:12","modified_gmt":"2025-06-19T05:13:12","slug":"government-urged-to-used-extra-pension-cash-uk-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/196300\/","title":{"rendered":"Government urged to used ‘extra’ pension cash | UK | News"},"content":{"rendered":"

Some of the UK’s largest pensions have been told to\u00a0ensure the care of younger workers before investing any surplus cash in the UK economy. Many UK gold-plated or final salary schemes<\/a> are holding huge surpluses, which the Government has earmarked for investment in UK growth as part of its \u00a3160 billion Fit for Purpose pension proposals.<\/p>\n

But this week, members of the Local Government Pension Scheme\u2014<\/a>which is responsible for the retirement savings of nearly seven million Brits\u2014were told any extra cash should be used to bridge the intergenerational pensions divide.<\/p>\n

Garth Foster from the Government Actuaries Department told the PLSA’s annual local authority pensions conference that “intergenerational fairness” needs to be considered when deciding what to do with a pension surplus.<\/p>\n

Mr Foster said: \u201cWe are talking about very large sums of money, and they are fiscally significant to the whole of the Government. So it is a really important issue.<\/p>\n

\u201cIt is also a really challenging mix at the moment, with the challenges of tight fiscal conditions across government, but this is more positive news from the pension scheme<\/p>\n

\u201cWhile nobody wants to see a return to the days of deficits equally, there are also challenges where funds become over-funded, particularly in the current context of really tight fiscal conditions.<\/p>\n

\u201cSo really striking that balance between the two aspects is key to ensuring that intergenerational fairness is being achieved.\u201d<\/p>\n

Intergenerational fairness is a concern among pension providers, with younger workers struggling to save to get on the property ladder plus the closing of final salary pension schemes and the rising state pension<\/a> age.<\/p>\n

Rachel Wood, head of the West Sussex pension, told the PLSA\u2019s annual local Government conference in Bedford that a pension fund’s role is not to hold on to an excess, but it should not draw on it too quickly either.<\/p>\n

\u201cSurplus for a long-term employer is a measure and a day-to-day tool. Surplus for shorter-term employers can be everything.\u201d<\/p>\n

\u201cIt’s not for us, but it’s there to illustrate benefits that have been accrued, future benefits that will be accrued, and then those new members coming into the scheme.\u201d<\/p>\n

Ms Wood added: \u201cWe’re not in a blissful position that what we have now can hold and pay benefits, out of the future service costs remain important to our employers.\u201d<\/p>\n

She said: \u201cWe need to avoid burning up a surplus, what we have less opportunity to predict or model is the impact of some of the local government reorganisation changes, devolution, benefit changes, and asset pooling, and all of these will need to be part of an iterative approach.\u201d<\/p>\n

Minister for Pensions, Torsten Bell, said earlier this year: “The record funding levels for Defined Benefit pension schemes are excellent news for Britain\u2019s employers and workers.<\/p>\n

“Fast-falling deficit payments offer employers a cashflow boost of over \u00a310 billion a year, which can support higher wages and investment.<\/p>\n

“And growing scheme surpluses can also be used productively. Currently, some trustees are held back from sharing the benefits of a surplus, but our plans will allow all schemes to safely do so, delivering greater investment across firms and benefits for savers.”<\/p>\n","protected":false},"excerpt":{"rendered":"Some of the UK’s largest pensions have been told to\u00a0ensure the care of younger workers before investing any…\n","protected":false},"author":2,"featured_media":196301,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,23666,6615,78735,2074,79730,2499,16,79731,15],"class_list":{"0":"post-196300","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-intergenerational-fairness","11":"tag-investing","12":"tag-local-government-pension-scheme","13":"tag-pension","14":"tag-pension-fund-surpluses","15":"tag-personal-finance","16":"tag-uk","17":"tag-uk-economic-investment","18":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114708322958508074","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/196300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=196300"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/196300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/196301"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=196300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=196300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=196300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}