Index public sector pensions to economic growth, says ACA

Could improve ‘fairness and sustainability’ of LGPS and other public schemes

James Phillips
clock • 3 min read
Index public sector pensions to economic growth, says ACA

Public sector pension increases should be linked to a stochastic analysis of long-term GDP growth in the wider UK economy, the Association of Consulting Actuaries (ACA) has said.

The current methodology for calculating the cost of public sector liabilities will "almost inevitably" overestimate or underestimate the value, the association warned. Instead, adopting appropri...

To continue reading this article...

Join Professional Pensions

  • Unlimited access to real-time news, analysis and opinion from the industry
  • Receive our in-depth monthly magazine in either print or digital format
  • Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
  • Receive important and breaking news stories selected by the Editors in our daily newsletter
  • Hear from industry experts and other forward-thinking leaders
  • Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date

Join now

 

Already a Professional Pensions member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Benefit

Jonathan Camfield: The very real risk is that some employers will face insolvency

New funding rules put 200 employers at insolvency risk

Amended rules risk forcing sponsors into ‘one-size-fits-all straitjacket’

Jonathan Stapleton
clock 15 August 2022 • 3 min read
Quilter earmarks £3m for British Steel redress

Quilter earmarks £3m for British Steel redress

Wealth firm’s interim results include all anticipated associated additional costs

Hope William-Smith
clock 11 August 2022 • 1 min read
Tender Watch: DWP appoints Capgemini for monitoring

Tender Watch: DWP appoints Capgemini for monitoring

Department says it faces ‘significant pressure’ to stabilise services and improve performance

Professional Pensions
clock 11 August 2022 • 1 min read
Trustpilot