The Bishop of St Albans received the following written answer on 14th November 2022:
The Lord Bishop of St Albans asked His Majesty’s Government:
- what discussions they have had with the Pensions Regulator regarding the use of Liability Driven Investment by pension funds.
- what assessment they have made of the risk to individuals from the practice of Liability Driven Investment by pension funds.
Baroness Stedman Scott (Con): Individual member benefits were not at risk. The DB pension promise is ultimately the responsibility of the sponsoring employer and does not depend on the performance of the fund. The steep rise in gilt yields and subsequent market turmoil at the end of September did not result in any DB schemes being at risk of insolvency. If any schemes do suffer losses which result in a funding deficit, this can be addressed through investment returns and additional contributions from the sponsoring employer over a reasonable period.