Scheme managers split over effect of volatile markets - EXCLUSIVE

An exclusive survey by Professional Pensions showed that while 53pc of scheme managers felt that schemes and sponsoring employers should be concerned about recent volatility, 42pc believed they should not be concerned and 5pc were unsure.

One scheme manager told [ITAL]PP[/ITAL] said there were definitely short-term concerns - especially if the sponsor had a weak covenant.

But he said: "So far as volatility is concerned, the principle problem in my opinion is the way in which liabilities are measured at a point in time despite the fact that they typically extend 70 years or more ahead."

Another manager agreed - noting the volatility would be more of concern to sponsoring employers, who were increasingly concerned about the impact accounting losses would have on company balance sheets, but would not necessarily effect the schemes ability to pay pensions.

This comes after scheme asset values suffered from huge volatility in January - with pension funds seeing the largest ever single daily increase in FRS17 deficits during the month [ITAL](PP, January 24)[/ITAL]

Aon Consulting calculated that the aggregate deficit of the 200 largest schemes increased from £2bn on December 31, 2007 to £33bn at close of business on January 21 this year.


The panellists are:

Aberdeen City Council Pension Fund - Gail Lindsay

Accenture Pension Plan - Yvonne Pearce

Akzo Nobel (CPS) Pension Scheme - Matthew Trueblood

Alliance and Leicester Pension Scheme - Robert Tyrrell

AMEC Staff Pension Scheme - Garry Lloyd

Arcadia Group Scheme & Senior Executives Scheme - Jayne Cookson

Associated British Foods Pension Scheme - Derek Yarrow

AstraZeneca Pension Fund - Nicki Mortimer

Aviva Staff Pension Scheme - Karen Jones

Axa Group Pension Scheme - David Oversby Powell

BAA Pension Scheme - Eric Hunt

Bedfordshire County Council Pension Fund - Geoff Reader

Berkshire Pension Fund - Nick Greenwood

BMW (UK) Operations Pension Scheme - Chris Wood

BOC Pension Scheme & BOC Retirement Savings Plan - Stephen Pegg

Britannia Building Society Pension Scheme - John Rogers

British Alcan Aluminium Retirement Income & Life Plan - David Jordan

British Energy Group Pension Scheme - Graeme Robertson

BT Pension Scheme & Retirement Plan - Kevin O’Boyle

Cable and Wireless Superannuation Fund - Peter Hampton

Cadbury Schweppes Pension Fund - John Hatchett

Cambridgeshire County Council Pension Fund - Allison Kew

Cardiff County Council Cardiff & Vale of Glamorgan Fund - Richard Bettley

Chevron Texaco UK Pension Plan - Ashley Saunders

Compass Group - Paul Lambert

Co-operative Group Pension Fund - Alan Murphy

Cornwall County Council Pension Fund - Calvin Matthews

Deutsche AM (UK) Scheme and Senior Group Scheme - Wayne Jury

Diamond Trading Company - Shola Salako

Dundee City Council Tayside Superannuation Funds - Sandy Flight

Durham County Council Superannuation Fund - Nick Orton

E. ON UK Electricity Supply Scheme & M.E. Scheme - Adrian Harris

EDF Energy Electricity Supply Pension Scheme - Ian Baines

Electricity Supply Pension Scheme - Richard Barlow

Essex County Council Pension Fund - Martin Quinn

Exel Retirement Plan - Ann Harrison

Fenner Pension Scheme - David Sykes

First Group Pension Schemes - Ian Robertson

Greater Manchester Pension Fund - Peter Morris

Halifax Retirement Fund - Robert Burnett

Hampshire County Council Pension Fund - Dave Wilson

Hertfordshire County Council Pension Fund - Nicola Webb

IMI Pension Fund - Peter Flanagan

Invensys Pension Schemes - Nigel Casson

John Lewis Partnership Pension Trust - Mervyn Harvey

Kingfisher Pension Scheme and Retirement Trust - Colin Hately

Kodak Pension Plan - Alan Watson

Lafarge UK Pension Plan - Paul Siggers

Land Rover Pension Scheme - Graham Squires

Legal & General Group UK Pension + Assurance Fund - Lisa Shufflebottom

Leicestershire County Council Pension Fund - Gary Featherstone

Liverpool Victoria Friendly Society Staff Pension Scheme - Mike Acred

London Borough of Lewisham Superannuation Fund - Mike Dobson

London Pensions Fund Authority - Mike Allen

Marks & Spencer Pension Scheme - Lynn Collins

Merchant Navy Officers Pension Fund - Linda Corbett

Middlesbrough Teesside Pension Fund - Mike Hopwood

Nestle (UK) Pension Fund - Julie Richards

Network Rail Pension Scheme - Chris Hannon

Nortel Networks UK Pension Plan - Louise Hammond

Northern Foods Pension Scheme - Peter Croskin

Northumberland County Council Pension Fund - Kevin Gregson

Pearl Group Pension Scheme - Denise Bellinger

Philips Pension Fund - Adrian Holmes

Plumbing and Mechanical Services Industry Scheme - Robert Burgon

Prudential Staff Pension Scheme - Andrew Parncutt

Railways Pension Scheme - Michael Goy

Reckitt Benckiser Pension Fund - Tim Wood

Rexam Pension Plan - Paul Reynolds

Rolls Royce Pension Schemes - John Champion

Royal Bank of Scotland Group Pension Fund - Peter Hurcombe

Scottish & Southern Energy Hydro-Electric Scheme - Martin MacKenzie

Scottish Power Pensions Scheme - Paul Mulhern

Scottish Widows' Retirement Benefit Scheme - Rod Cummins

Sears Retail Pension Scheme - Gary Branston

Staffordshire County Council Pension Fund - Melanie Stokes

Standard Chartered Pension Fund & Retirement Scheme - Mark Fox

Standard Life Assurance Co. Staff Pension Fund - Brian Beveridge

Strathclyde Pension Fund - Richard McIndoe

The Environment Agency Pensions Active and Closed Funds - Howard Pearce

The Pensions Trust - Karen Parry

The Shipbuilding Industries Pension Scheme - Elaine Darroch

The Weir Group - Barbara Mungall

Thorn Pension Fund - Keith Rayner

Torfaen Pension Fund - Graeme Russell

Total UK Pension Plan - Lester Farrant

Tyne & Wear Pension Fund - Stephen Moore

Unilever UK Pension Fund - Nigel Biggs

Uniq - Helen Whitbread

Vauxhall Motors Pension Plan - Andrew McGaw

Warwickshire Pension Fund - Phil Triggs

West Midlands Pension Fund - Mike Woodall

Western Power Distribution Pension Scheme - Paul Martin

WH Smith Pension Funds - Martin Ashford

Willis Group Services Willis Pension Scheme - Richard Bostock

Wm Morrisons Penson Scheme - Graham Sutch

Woolworths Group Pensions Scheme - Elisabeth Browning

Worcestershire Country Council Pension Fund - Richard Peregrine

WS Atkins Staff Retirement Benefits Plan - Kevin Geeves