December 2 2009
A big rise in borrowing through index-linked and long-dated government bonds would be the most effective action the Treasury could take to help hard-pressed defined benefit pension schemes, according to the industry's trade body.
The National Association of Pension Funds said that 80% of its members saw an increase in the issuance of long-dated and inflation-linked gilts as the government measure that would most help its members.
Pensions experts say protecting schemes against adverse market moves requires the purchase of long-dated and index-linked gilts, since these move in line with pension fund -liabilities.