UK - Nearly three quarters (73%) of defined benefit schemes do not expect to be fully funded in five years time, although the figure falls sharply to 16% over ten years, a survey by the NAPF has found.
Other key findings of the survey included the fact one third of private sector DB schemes were still open to new employees, while more than half of people saving in private sector DB schemes today belong to schemes that are still open to new members.
Looking forward to the arrival of Personal Accounts in 2012, the survey also highlighted how inertia had increased the importance of the default scheme.
A massive 94% of people left their money in the default fund despite the fact more investment options are being brought to the market, and NAPF CEO Joanne Segars said:
“The amount of investment choice available in Personal Accounts will need careful consideration. There is every reason to expect most people to stay in the default fund, so it will need to be very carefully designed by experts.”
The Marks and Spencer Pension Scheme has completed buy-in deals worth £1.4bn with two insurers, mirroring similar transactions last year.
There have now been a total of 47 buy-in and buyout deals of over £500m announced since 2007. The full list, provided courtesy of LCP, is as follows...
It may be time to create variations of limited liability, but each alternative has its own problems, Con Keating argues.
A former energy and climate change secretary has said that by continuing to invest in fossil fuel firms, pension schemes are just making the climate change crisis even worse.