Defined Benefit

Around half of firms with defined benefit schemes have been forced to cut corporate investment in a bid to deal with deficits, latest Bank of England research shows.

The Comet Pension Scheme deficit remained unchanged at €40m (£34m) last year, despite the scheme receiving additional contributions in a deal which released former sponsor Comet from its obligations.

Six out of 10 respondents said employers were generally failing to make sufficient provisions for ill-health retirement when closing DB schemes.

Trustees should work with employers to agree funding solutions that balance member interests with business growth according to The Pension Regulator chairman Michael O'Higgins.

Pensions minister Steve Webb has said he envisages automatic transfers being used in defined benefit (DB) schemes to counter the issue of deferred members.

The Communication Workers Union (CWU) has threatened a national strike after it "firmly rejected" the proposals from the Royal Mail to make changes to its pension plan.

Companies with defined benefit (DB) schemes restating 2012 accounting figures to reflect IAS19R will show a reduction in pre-tax profits by around £5bn, Towers Watson warns.

The rise in the yield on government debt has cut private sector deficits by over a quarter, research from the Pension Protection Fund (PPF) finds.

Almost all FTSE100 firms increased the discount rate for IAS19 liabilities due to the yield on AA corporate bonds, research from Barnett Waddingham finds.

Buzz respondents were not in any way convinced that solvency requirements from Europe are dead and buried; just under 60% thought the requirements will be back in one form or another.