UK - The negative impact pension fund liabilities have on companies is being exaggerated by stock market commentators, a leading investment bank claims.
Commerzbank Securities said investors and commentators are using FRS17 deficits to justify low market ratings, which is encouraging those who “are looking for any excuse to sell”.
The bank’s latest UK market briefing report says that while the risk of pension fund liabilities will put pressure on some company balance sheets, the negative impact on cash-flow has been overstated.
“Companies may need to make extraordinary one-off payments as seen with the GSK announcement.
“However, it is unlikely that actuaries will force the issue by demanding massively increased cash contributions.”
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.