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.
Trustees lack expertise, time and resources to develop effective communications on technical pensions issues and need professional help, a major review of the British Steel saga has concluded.
In this week's Pensions Buzz, we want to know if you think trustees should consult directly with members before agreeing to a DB superfund buyout.
Thousands of savers taking tax-free lump sums ahead of retirement are at risk of a pensions shortfall in later life due to neglecting their remaining pot, Zurich has warned.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?