UK - KPMG employees will find out next month whether the accounting giant will scale back pensions benefits to cope with its schemes' £71m deficit.
Aon Trust Corporation – the independent trustee of KPMG’s schemes – has written to the 6800 members of the firm’s £250m pre-April 2000 fund to warn them to expect benefit cuts.
Aon was hired after KPMG dropped the previous independent trustee, Capita IRG Trustees, at the start of the year.
Aon decided to conduct its own valuation and investment review of the schemes which is now near completion.
Members will be informed of any potential benefit cuts bymid-September.
However, KPMG cannot move on member benefit cuts until the courts reach a decision over the use of a clause in the trust deeds that could grant this power.
Aon instigated court proceedings in March to get clarification on the use of the clause.
In the interim, all transfers and early retirements have been suspended.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.