UK - Shipbroker Clarksons looks set to shut its £78m defined benefit scheme to new members after seeing its surplus evaporate within just six months.
The scheme had a £5m surplus under FRS17 at the start of the year, but this had been wiped out by market by the end of June.
The company is “evaluating a number of options that seek to limit the open-ended commitment that operating a final salary scheme entails”.
Clarksons company secretary David Gilbert confirmed that its pension arrangements would be reviewed, but stressed that no decisions had been made and no timetable had been set.
He added: “We don’t think things can continue as they are, so we need to take professional guidance. We haven’t got an answer.”
Presently, the scheme allocates 68.4% to equities, 22.2% to fixed income, 7.3% to real estate and 2.1% cash.
UBS Global Asset Management is the scheme’s sole fund manager, while Gissings is the administrator.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.
The Pensions Advisory Service (TPAS) helped 187,000 people in 2017/18, a 9% fall on the previous year despite setting up special helplines for specific scheme members.
The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under Freedom of Choice at £40,000 if elected into government.