gilt yields

The government should resist calls to allow schemes to smooth gilt yields when calculating discount rates for valuing future liabilities says Punter Southall.

The overwhelming majority of the industry believes The Pensions Regulator should provide greater flexibility on how scheme liabilities are calculated according to research from SEI.

Last week the yield on UK gilts dropped below US treasuries as the Bank of England's quantitative easing programme continued to impact the market.

Schemes can expect to see a sharp increase in their Pension Protection Fund levies next year because of continuing low gilt yields, warns a consultant.

M&G's Richard Woolnough said the possibility of another £375bn in asset purchases by the Bank of England means gilt yields could remain at record lows for years to come.

A "perfect storm of de-risking" could lead to widening pension deficits that will dwarf bond markets, warns the Society of Pension Consultants.

In the latest Pensions Conjecture our panellists discussed scheme funding and gilt yields.

Institutional investors are selling gilts at the fastest rate in more than a decade according to Office for National Statistics figures.

The Treasury has proposed to give the Scottish government the power to issue its own bonds.

UK schemes achieved an average return of 4.3% on investments last year led by gilt returns of more than 20%, a study shows.