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.”
In this week's Pensions Buzz, we want to know whether you think a contract-based, trust-based or a master trust arrangement would be best for a new defined contribution scheme.
The £28bn Brunel Pension Partnership has opened a tender for active equity managers to oversee around £1.8bn of the pool's assets.
RPMI Railpen has injected £7m of new equity into full-fibre internet service provider, Community Fibre.
The Pensions Regulator (TPR) is to prosecute Samuel Smith Old Brewery and chairman Humphrey Smith for failing to provide information and documents for an ongoing investigation.