UK - Charitable and non-profit groups that rely on donations and have significant pension deficits face tough decisions on costs, a leading consultant says.
Both the RSPCA and Church of England have revealed deficits in their final salary pension schemes in the past 12 months.
Mercer Human Resource Consulting European partner Matthew Demwell said organisations that rely on donations have the option of putting a lid on employment costs or having a bigger proportion of donations going towards paying for these costs.
Demwell said: “These organisations cannot let their employment costs spiral through the roof – the costs of final salary pensions are only going in one direction at the moment.
“Now that some financial chickens are coming home to roost, there are going to be some very tough decisions for non-profit organisations in these situations, because their raison d’etre is to help the particular cause they are espoused to.”
The Church of England’s Pensions Board secretary Roger Radford said the issue was not related to people’s reluctance to donate but one of increasing donations to meet the various clergy costs.
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