UK - Companies will enjoy improved industrial relations if they make one-off payments to plug pension scheme deficits, Mercer Human Resource Consulting claims.
Mercer said reducing shortfalls – by borrowing money or using available cash – would give greater security for members’ pensions and would increase staff loyalty to the company.
The consultant said shareholders would also benefit from more transparent disclosure of how companies raised finance.
Mercer worldwide partner Paul Greenwood said employees were already exposed to their employer’s success through future earnings, and this was compounded by the ability to meet their pensions promise.
He said: “By making one-off payments to their pension scheme and placing debt with investors – who are more able to bear and diversify the risk than pension scheme members – employers should benefit from increased staff motivation and retention.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers