Member

Yet, while the levy ceiling remains high, recent market volatility—sparked largely by comments and decisions, including ones that are then changed or retracted, by a certain Mr Trump—and continued downwards pressure on investment returns serve as a timely reminder that the stability of defined benefit schemes cannot and must not be taken for granted. The turbulence that we have witnessed in recent weeks is a cautionary tale; indeed, it is often the case that decisions taken far beyond these islands have the most profound impact on our domestic markets. It is true that the recent rise in gilt yields and a period of strong investment returns have placed many schemes on a firmer footing, with around 75% now in surplus—other noble Lords have mentioned this point—but we must not allow these favourable conditions to lull us into a false sense of complacency. To assume that such conditions will endure indefinitely would be, at best, unwise and, at worst, reckless.