Trustees' views at odds with employers
UK - Pension trustees' views on the future of defined benefit (DB) schemes is at odds with the expectations of employers, a survey from Aon Consulting has revealed.
The survey found 80% of trustees predicted their DB pension schemes would still exist in ten years, despite 50% of employers predicting scheme wind-up in the same period.
In surveying more then 250 trustees of DB schemes, a minority (20%) said they expected their scheme would be wound up within a decade.
However, four fifths (80%) predicted that their scheme would still be in existence in ten years, and over half (52%) thought that the scheme would last in excess of 20 years.
The results were a stark contrast with the expectations of employers, as measured by Aon's most recent employer survey in 2007.
Paul McGlone, principal and senior actuary at Aon Consulting, said it was worrying that there was such a large expectation gap between trustees and employers over the longevity of pension schemes.
He said: "It is fundamental for trustees and sponsoring employees to have a shared view as it impacts on how all of the big issues affecting pension schemes are addressed.
"Without a commonly shared-view, there is unlikely to be agreement over actions, and there is a danger that one party takes decisions that are a hindrance to the other. We recommend that that both parties should always take steps to agree shared expectations about the pension fund lifespan."
In surveying more then 250 trustees of DB schemes, a minority (20%) said they expected their scheme would be wound up within a decade.
However, four fifths (80%) predicted that their scheme would still be in existence in ten years, and over half (52%) thought that the scheme would last in excess of 20 years.
The results were a stark contrast with the expectations of employers, as measured by Aon's most recent employer survey in 2007.
Paul McGlone, principal and senior actuary at Aon Consulting, said it was worrying that there was such a large expectation gap between trustees and employers over the longevity of pension schemes.
He said: "It is fundamental for trustees and sponsoring employees to have a shared view as it impacts on how all of the big issues affecting pension schemes are addressed.
"Without a commonly shared-view, there is unlikely to be agreement over actions, and there is a danger that one party takes decisions that are a hindrance to the other. We recommend that that both parties should always take steps to agree shared expectations about the pension fund lifespan."
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