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NAPF: Pensions regulator must relax rules to manage QE impact

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The National Association of Pension Funds is calling for The Pensions Regulator to relax its rules governing pension deficits to allow funds to deal with the effects of quantitative easing.

The Bank of England has spent £375bn on gilts since 2009, pushing down gilt yields which inflates DB scheme liabilities.

The move has led to higher contributions to deal with the shortfall and the NAPF wants funds to be allowed to build bigger deficits to deal with QE.

Speaking to the Treasury select committee this week as part of a probe into QE, NAPF chair Martin Hyde-Harrison said: “Many of the effects of QE could be mitigated by other institutions. We don’t have a problem with the BoE but with The Pensions Regulator. The Government should give a direction to The Pensions Regulator to be more flexible.”

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