Echoes, echoes

The publisher of the Daily Mirror faces an intervention by the Pensions Regulator after refusing demands from its retirement scheme to make larger contributions to address a substantial funding deficit.

That this should happen at the same time as the Ghislaine trial, eh? Still, at least time they seem to have noticed…..

3 thoughts on “Echoes, echoes”

  1. When “funding deficit” is calculated by applying a negative Ogden rate, but blue chips are still returning 3% dividends, it is not entirely unreasonable to tell the trustees to go pound sand. After all, who would reasonably want to put money into a savings account with a negative nominal interest rate?

    The demand from the regulator that pensions should be funded by gilts is just a teensy bit mafia-esque.

  2. So……. tell the pension members they haven’t been contributing enough and they need to increase their payments? In my experience that goes down like a bucket of sick. “You mean putting in 1.5% won’t get me a decent pension? How *DARE* you not make maths work to do as I demand!”

    I’ve been putting 20%-25% of my income into my pension for decades, I have *NO* sympathy with these people.

  3. “Reach, formerly known as Trinity Mirror, closed its final salary pension schemes to new members in 2002 and to further accruals for existing members in 2010.” So they did the sensible things long since.

    “The dispute between Reach and its pension trustee highlights the pressures faced by the company as it attempts to survive the digital revolution.” You can say that again. And what happens if the Pension Protection Fund struggles?

    I assume that USS, the university scheme, is so big that the PPF would be unable to cope with its demise. What then? In principle USS is backed by the assets of the member universities, but what is the value of a heap of buildings designed for teaching and research?

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