Financial Times FT.com

High-coupon gilt could boost defined-benefit pension schemes

By Andrew Cook

Published: January 27 2006 02:00 | Last updated: January 27 2006 02:00

From Mr Andrew Cook.

Sir, The problem of funding defined-benefit pension schemes would be greatly reduced if the government were to issue a high-coupon long-dated gilt - say 6 per cent 2050 - only available to defined-benefit schemes and in sufficient quantities to satisfy demand.

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