Reply to post: Re: I blame the cursed one

300,000 BT pensioners await Court of Appeal pension scheme ruling

Doctor Syntax Silver badge

Re: I blame the cursed one

some company final salary pension schemes had so much money in them that they were stopped from taking pension contributions from employees


They were stopped by HMRC who had a rather short term view of things, not a good idea when dealing with pensions. They made estimates of what they thought such pension schemes would need to meet future requirements and ruled anything else would be tax evasion. They were wrong. They assumed interest rates wouldn't fall.

Cue the cursed one again. He gave the BoE the task of managing interest rates aiming for a CPI of 2%. As a lot of stuff in the CPI was going over to manufacturing in China or wherever it stayed low so interest rates fell. That threw out all the calculations HMRC had made because the estimated needs depend on the projected returns from annuities which are tied to interest rates. The fact that housing costs were in RPI but not CPI meant that a blind eye was turned on the housing bubble.

And yet after the eejit was thrown out of office - years too late - he got some nice job in a US university lecturing on how to run an economy without mentioning that he ran one into the ground.

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