Greatest Good 2: Response to the Department for Work & Pensions Green Paper 'Security and Sustainability in Defined Benefit Pension Schemes'

64 Pages Posted: 18 Jun 2020

See all articles by David P. Blake

David P. Blake

City, University of London

Matthew Roy

affiliation not provided to SSRN

Date Written: 2017

Abstract

"Greatest Good 2" follows-up and repeats the findings of our earlier December 2015 discussion paper ("The Greatest Good for the Greatest Number") that 1,000 occupational defined benefit pension schemes are stressed as a result of having a financially weak sponsors. The slide of many these schemes into the Pensions Protection Fund (PPF) seems inevitable because policy and regulation demand that schemes adhere to the binary outcomes of paying full benefits or going into insolvency. We call for the government to pursue a policy of ‘second best’ outcomes allowing schemes with weak sponsors for whom insolvency is inevitable to negotiate settlements between full benefits and the benefits provided through the PPF.

JEL Classification: G22

Suggested Citation

Blake, David P. and Roy, Matthew, Greatest Good 2: Response to the Department for Work & Pensions Green Paper 'Security and Sustainability in Defined Benefit Pension Schemes' (2017). Available at SSRN: https://ssrn.com/abstract=3610359 or http://dx.doi.org/10.2139/ssrn.3610359

David P. Blake (Contact Author)

City, University of London ( email )

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HOME PAGE: http://www.pensions-institute.org/

Matthew Roy

affiliation not provided to SSRN

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