The NAPF has written to the Pensions Regulator highlighting concerns around the impact of the Bank of England’s recent announcement on Quantitative Easing (QE). This paper sets out the NAPF’s initial qualitative and quantitative analysis of the potential impact of QE on UK pension schemes - both on pension scheme funding for DB schemes and on member outcomes for DC schemes.

The NAPF understands the reasons for the new round of QE and supports the objective of securing the economic recovery. But it is important to recognise the specific impacts of QE on pension funds, particularly in the short term. The NAPF would urge policy‐makers to consider the exceptional circumstances now facing pension schemes when issuing guidance in connection to triennial scheme valuations.

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