Reeves to create pension 'mega funds' to invest in infrastructure
Reforms could "unlock £80 billion" of investment, according to Treasury plans, which say fewer but larger funds can get greater returns.
Chancellor Rachel Reeves wants to imitate the way large Canadian and Australian pension schemes work.
She said it marks "the biggest set of reforms to the pensions market in decades" ahead of providing more details in a speech at Mansion House on Thursday evening.
Apparently, figures from the NGA, National Guesswork Authority*, conclusively show greater returns from larger funds. Really it's a no-brainer, pensioners should be delighted, although they should not spend too long dwelling on HS2.
* Pinched from a comment on a Not a lot of people know that post kindly passed on by dearieme here. I have a feeling that the NGA may feature here again.
8 comments:
"larger funds can get greater returns."
Maybe. I wonder why those rapacious capitalists haven't worked that out for themselves, though. They could pick up bigger salaries, generate bigger dividends, keep more customers happy, and slim down the workforce with economies of scale. Why haven't they done it already?
Reeves likes the sound of bigger funds because she will get more when she raids them.
The first proposal relates only to Local Government pension funds ie public sector pensions.
A few years ago the Hampshire Fire Service pension fund 'acquired' a big deficit. No problem; they just surcharged Council Tax payers to fill up the hole.
So, Rachel Thieves can do risky things with public sector pensions safe in the knowledge that, if it goes tits up, no public sector pensioner will suffer any detriment.
Sam - that's it and bigger funds may be able to withstand 'investments' which generate no return but virtue-signalling for politicians - until they don't.
decnine - yes, our government's notorious ability to spot losers seems likely to create genuine 'black holes' which taxpayers will have to fill.
"Reeves likes the sound of bigger funds because she will get more when she raids them."
Ding ding ding, we have a winner!
Big Government likes Big Business because its easier to control. As long as you let the head honcho have a nice well paid sinecure you can get them to do whatever you want because all they care about is their salary and not rocking the boat - 'You want a few billion to throw at your Cucumbers into Sunbeams Project? Of course Minister, of course where do i sign?'
Sobers - yes, the Labour leadership seems intent on steering the party towards becoming a party of big government and big business. It clearly likes the idea of a sinecure club but also seems to think it can attract more impressive people who don't merely bicker away for hours behind closed doors. Much like Mussolini's outlook.
My guess was that it is intended to make well run councils subsidise badly run ones. Or to make evidence of mismanagement more obscure in hopes of keeping Labour councillors out of jail.
dearieme - I haven't heard that, but it would suit the government to find a way of subsidising poorly run Labour councils.
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