UK - A majority of trustees are bullish about the long term prospects for their pension schemes, with over half (58%) of those currently in deficit believing they will be in surplus in a decade, according to research from Aon Consulting.
Paul McGlone, principal and actuary at Aon Consulting, said: "The bullish attitude of a large proportion of the surveyed trustees is encouraging and reflects the belief that schemes are, in the main, adequately funded by the sponsoring employer. These trustees seem to have embraced the recent scheme funding legislation, which promotes open communication with the employer over the funding of the scheme. This could be the reason why most believe that their deficits will be eradicated by additional employer contributions."
Over a quarter (27%) of trustees with defined benefit pension schemes currently in deficit believed their funds would still be in deficit in 10 years' time.
McGlone added: "This goes against the expectations of the regulator and, more importantly, implies that over a quarter of companies with final salary schemes cannot afford to make good the deficits over the 10 years. While there may be good reasons for not meeting these expectations - and the regulator has said that he will take these into account - clearly he will want to take a closer look at these pension schemes."
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