UK - Rising longevity has been causing headaches for large companies with defined benefits (DB) pension plans, according to a survey by Watson Wyatt.
Some 60% of the senior finance officers, treasury and pensions executives polled said they were ‘concerned’ about the effect of longevity risks on their pension schemes and had taken steps to offset them, or were considering doing so in the future.
Steven Dicker, senior consultant, Watson Wyatt, said: “Unanticipated increases in life expectancy can represent a significant unhedged risk for pension schemes.”
According to the results of the survey, 25% of funds have taken steps to control longevity risk, 25% are considering hedging and 8% intend to hedge or buy out.
Volatility connected to pension fund risk had an adverse effect on share prices in the opinion of 30% of respondents.
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Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
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Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers