Pension fund drops £100m
Thursday 6th November 2008, 2:30PM GMT.
THE States old-age pension, health service and long-term care funds combined have plummeted by at least £100m. since the beginning of the year, Social Security confirmed yesterday.
Last week Treasury and Resources said that the civil servants’ pension fund had fallen by £255m. in a similar period – all because of stockmarket falls.
‘The department is extremely disappointed about the fall in value, but understands that by having a high proportion of investments in equities the performance of the fund is going to be volatile,’ said minister Mark Dorey (pictured).
‘But it is important to remember that these are unrealised losses and would only become real if the equities were sold.’
He added that 72% of the funds were invested in equities which, as a result of the loss of confidence in global stockmarkets, had fallen significantly.
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It is also important to remember that in the current financial climate, it could easily go down another £100 million! (If there is that much left!)
What we have witnessed of the global financial meltdown so far is equivalent to the “visible one-eighth of the iceberg” – there is a lot more to come.
So, the Department is extremely disappointed. I feel soooo sorry for them! What are they doing about it? Sitting on the sidelines letting events take their course while feeling disappointed, no doubt.
This crisis has been evolving for a long time. The investment managers should have been aware and should have taken action a long time ago. Why are they still 72% invested in stocks?
As a pensioner, I am extremely worried for myself and other pensioners. I would like to see the equity fund replaced by something of real and lasting worth such as physical gold and silver.
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