The UK’s largest private-sector retirement plan and hundreds of universities have warned the pensions watchdog that its shake-up of rules risks damaging economic growth and the education sector.
In a letter to the Pensions Regulator, which was seen by the Financial Times, the £90bn Universities Superannuation Scheme said its stakeholders had “deep misgivings” about proposed changes to the funding code for defined benefit pensions.
The reforms, published in December last year, could require most of the UK’s 5,200 DB plans, which promise guaranteed pensions, to invest more in low-risk assets, including bonds, and less in high-risk growth assets such as stocks.
