UK - The debate over control of pension fund surpluses has been reignited by David Yeadle of the EEF manufacturers' association who called for companies to be allowed access to the cash.
Yeadle warned that companies could pay too much to schemes in deficit only to create a surplus they cannot touch.
He added: “We need a serious debate before that happens on any scale, on what might be done because it will be easier to have a sensible discussion now then when the surpluses are there.”
Despite a survey by Aon Consulting last month, other leading consultants were reluctant to comment on the matter.
Some said on a fiduciary level they were against the calls, but allowing companies access to the surplus could make corporations’ balance sheets easier to manage and help them to run more efficiently.
Aon Consulting’s head of employer advice, Paul McGlone, said when the survey was released: “While employers and trustees have spent a lot of energy in recent years dealing with downside risk, the upside risk cannot be forgotten.”
He added: “Employers need to take a more complete view of pensions risk management.”
Measures to allow companies access to unnecessary surpluses are to be considered as part of an ongoing government review.
In March, Global Pensions reported that many companies were creating devices to minimise the risk of trapped surpluses.
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