Pension schemes face funding crisis
Britain’s pension schemes remain gripped by a funding crisis, despite the nation’s recent economic revival, figures published today reveal.
A PricewaterhouseCoopers analysis of defined benefit pension schemes – which offer guaranteed pensions based on their members’ final salaries – shows that their financial health is still far below the levels seen before the financial crisis.
The firm’s pension support index now stands at 76 out of a possible 100, with 90 indicating that schemes’ financing issues are under control.
Prior to the financial crisis it stood at 88. However, while the index has improved since a low of 64 in March, it has effectively flatlined since December 2011, when it stood at 74.
This suggests that the benefits of economic recovery and a stock market revival are not being felt by pension schemes.
The index tracks the relationship between the financial strength of Britain’s 350 biggest public companies and their defined benefit pension obligations, indicating the overall level of employer support offered to these pension schemes. Its findings could worry the Pensions Regulator, which oversees schemes.
Jonathan Land, pensions credit advisory partner at PwC, said: “Ignoring the strengths and weaknesses of their company sponsor is leaving some pension schemes vulnerable to risks that impact on both the pension scheme and employer at the same time.”
- 1 Planes go hybrid-electric in important step to greener flight
- 2 North Korean prison officers 'cooked prisoner's baby and fed it to their dogs', more horrific accounts from UN report reveal
- 3 Antonio Martin shooting: Mayor says there should be 'no comparison' to Ferguson
- 4 Antonio Martin shooting: Police and protesters clash over teenager's death just five miles from Ferguson, Missouri
- 5 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...