UK - Soaring pension fund deficits threaten to blow a hole in government tax revenues as companies pump more money into floundering schemes.
The large additional payments companies are making into their pension funds are denting their profits, leaving smaller corporation tax receipts for the government.
The danger has been highlighted by a Credit Suisse First Boston (CSFB) report which calculated that last year 91 of the top 100 UK companies had a combined pensions shortfall equal to 93% of their combined operating profits.
Liberal Democrat spokesman Lord Oakeshott said: “These dramatic figures are a clear warning.
“The government must come clean on how big a hole these payments will blow in corporation tax receipts and report their findings in the Budget.”
The Treasury said it could not comment on the likely damage to government revenues but said that any revision in corporation tax forecasts would be announced at the time of the budget this spring.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.