UK - Friends Provident has become the latest insurer to cut with-profits payouts, warning that figures could drop further still.
Payouts to policyholders have fallen around 18% this year, compared to 2000.
Friends warned that despite the much anticipated economic recovery, long-term investment results are excepted to remain much lower than in previous decades.
“The negative investment returns experienced in 2000 and 2001 have still not been fully reflected in payout levels,” said the firm.
“As a result unless there is a significant growth in equity and property values in the remainder of 2002 further reductions in payout levels are likely.”
By Madhu Kalia
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.
An independent expert panel will be commissioned to review how the £6.1bn funding deficit figure for the Universities Superannuation Scheme (USS) was reached, Universities UK (UUK) has announced.