UK - Engineering firm Invensys is selling the non-production parts of its business to reduce debt and plug a deficit in its pension scheme.
The firm hopes to raise £1.6bn from the sale of the businesses, which include energy management and software companies. The firm’s £3.8bn scheme currently has a deficit of around £400m.
A company spokesman said: “Proceeds raised from asset sales will be used to satisfy the cash requirements of the group, including reduction of indebtedness and funding of pension schemes, as well as the investment required to grow market share in production management and rail systems.”
The actual deficit of the scheme will be revealed on May 29 when the results of its triennial review are due.
The scheme has 6000 active members, 49,000 deferreds and 60,000 pensioners.
Engineering and Employers’ Federation deputy director of employment policy, David Yeandle, stressed that engineering firms had been hit hard in the last five years.
He said: “The crisis engineering firms face in pensions is exacerbated by a difficult economic backdrop.”
Potential changes to accounting standards and increased pressure on companies to accelerate contributions could worsen FTSE 100 scheme funding by up to £100bn, according to Lane Clark and Peacock (LCP).
Smart Pension has taken on over 20,000 active members from the £20m Corpad Master Trust, following a strategic review by the ceding firm's trustees.
The Universities Superannuation Scheme (USS) allegedly obstructed a whistleblower as she tried to discover the true value of the deficit in its defined benefit (DB) section, according to reports.
The Cost Transparency Initiative (CTI) has launched a number of templates and guidance to help pension schemes deliver greater value for savers with enhanced disclosure of transaction cost information.