Committees

Defined benefit pensions with Liability Driven Investments

Inquiry

Increases in yields on long-dated gilts in late September and early October 2022 meant defined benefit (DB) schemes using Liability Driven Investment (LDI) strategies needed to deal with the rapid increase in collateral required to support the LDI trades. This led to the Bank of England’s announcement on 28 September 2022 under its Financial Stability remit of the temporary purchase of long-dated gilts until 14 October 2022.

The Work and Pensions Select Committee conducted an inquiry on the lessons to be learned from this experience, focussed on the impact of the volatility in gilt yields on DB schemes with LDI strategies in September 2022 and their regulation and governance.

Read the call for evidence to learn more about the inquiry.

Read our report.

This inquiry is no longer accepting evidence

The deadline for submissions was Friday 3 March 2023.

Reports, special reports and government responses

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Seventh Report - Defined benefit pensions with Liability Driven Investments
Inquiry Defined benefit pensions with Liability Driven Investments
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HC 826
Report
Response to this report
First Special Report - Defined benefit pensions with Liability Driven Investments: Government Response to Committee’s Seventh Report of Session 2022–23
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HC 259
Special Report
Large Print - Defined benefit pensions with Liability Driven Investments
Inquiry Defined benefit pensions with Liability Driven Investments
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Report
Response to this report
Large Print - Defined benefit pensions with Liability Driven Investments: Government Response to Committee’s Seventh Report of Session 2022–23
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HC 259
Special Report
First Special Report - Defined benefit pensions with Liability Driven Investments: Government Response to Committee’s Seventh Report of Session 2022–23
Inquiry Defined benefit pensions with Liability Driven Investments
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HC 259
Special Report

Correspondence

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Correspondence with the Minister for Pensions relating to the Defined benefit pensions with Liability Driven Investments inquiry
Inquiry Defined benefit pensions with Liability Driven Investments
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Correspondence
Correspondence with the Minister for Pensions and the Economic Secretary to the Treasury relating to Defined benefit pensions with Liability Driven Investments
Inquiry Defined benefit pensions with Liability Driven Investments
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Correspondence
Correspondence from the Financial Conduct Authority relating to Liability Driven Investment guidance
Inquiry Defined benefit pensions with Liability Driven Investments
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Correspondence

Oral evidence transcripts

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22 March 2023
Inquiry Defined benefit pensions with Liability Driven Investments
Witnesses Laura Trott (Minister for Pensions at Department for Work and Pensions), Andrew Griffith (Economic Secretary to the Treasury at HM Treasury), Lowri Khan (Director of Financial Stability at HM Treasury), and Tom Josephs (Director, Private Pensions at Department for Work and Pensions)
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Oral Evidence
1 February 2023
Inquiry Defined benefit pensions with Liability Driven Investments
Witnesses Tim Bush (Head of Governance and Financial Analysis at Pensions and Investment Research Consultants), Professor David Blake (Director at Pensions Institute, Bayes Business School), Toby Nangle (Independent Economic and Financial Markets Commentator), and Sarah Breeden (Executive Director for Financial Stability, Strategy and Risk at Bank of England)
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Oral Evidence
23 November 2022
Inquiry Defined benefit pensions with Liability Driven Investments
Witnesses Agewage, John Ralfe Consulting, and Brighton Rock Group
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Oral Evidence

Written evidence

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Bernard H Casey (Managing Director at SOCial ECONomic RESearch London and Frankfurt) (LDI0058)
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Pension Protection Fund (LDI0088)
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Pension Insurance Corporation plc (LDI0087)
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Other publications

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  • Email: workpencom@parliament.uk
  • Phone: 020 7219 8976 | 020 7219 1679 (Media)
  • Address: Work and Pensions Committee | House of Commons | London | SW1A 0AA