The Ways and Means Account is just an infinite overdraft with the Central Bank, and it grows over time to balance the net-savings of the non-government sector just as the Gilt stock does now.

HM Treasury simply doesn't issue any Gilts any more. Any funding of private pensions in payment should be done by offering annuities at National Savings, which would also have the neat side effect of 'confiscating' net savings and making the deficit go down.

It's irrelevant what interest BoE charges on the 'Ways and Means' account since any profit the BoE makes from it goes back to HM treasury anyway. So it can 50% if that gives the necessary level of satisfaction to mainstream economists.

What you have is a standard intra-group loan account between a principal entity (HM Treasury) and its wholly-owned subsidiary. Normally those sort of loans are interest free for the fairly obvious reason that interest charging is utterly pointless,

and they are perpetual for the same reason. Rolling over is totally pointless.

Any term money can then be issued to the commercial banks directly by the Bank of England - up to three month Sterling bills.

The interest rate to the banks from the Bank of England is a matter of the 'capital development of the economy'. Almost certainly it would be ZIRP.

If you are a member of a pension scheme then the savings of the current generation, plus the interest on Gilts and any income from the other assets owed pay the pensions of the current pensioners. They are private taxation schemes that circulate money around the system.

You'll note that when there was a threat of people failing to save in pensions, the government introduced compulsory retirement saving - which is of course a privatised hypothecated tax.

Rather than the assets of a pension scheme being used to purchase Gilts, the assets would be used to purchase an annuity from the government dedicated to an individual.

The result is that rather than the private pension receiving Gilt income from the state, to then pass onto the pensioner, the state would cut out the middleman (and their cut) and pay the pensioner directly as an addition to the state pension.

There's a whole private pension industry out there literally doing absolutely nothing of any real value. They can't provide a guaranteed income in retirement without state backing in the form of Gilts. So what is exactly the point of having them?