Interest rates rise in a no bid market. The alternative is that the govt confiscates your money in the bank and replaces it with bonds.
Arent Pension funds controlled by government already some of the largest holders of government bonds. If they are holding at high prices such as now which is not justified, they will see losses. Perhaps the pension will give out lump sums as a bond and the loss of value over time from its return is with the pension holder who is now getting 3% PA with 10% inflation