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Are changes to DB scheme rules a risk or will it boost economic growth?

Journalist: Marc Shoffman, Freelance

ended 28. January 2025

The government is planning to change defined benefit scheme rules to let companies access surplus funds to invest in the core business.

This could be to purchase equipment or supplies, and/or provide additional benefits to members of the pension scheme.

The aim is to boost economic growth but I am keen for comments for a MoneyWeek article on whether this is a risky strategy? Will it put DB scheme funding and people's retirement at risk? 

 

1 responses from the Newspage community

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Joshua Gerstler
Chartered Financial Planner & Wealth Manager at The Orchard Practice
The government needs to be very careful about lending companies access DB pensions for their own use. A DB pension is designed to pay a guaranteed income to the employee in retirement. There have been numerous DB pensions over the years that have fallen into the Pension Protection Fund as they have not been able to meet their obligations. Allowing companies to access this money for their own use is a dangerous game.