GLOBAL - Car giant Ford is injecting $700m (£436m/e622m) into its overseas pension funds.
The US-owned firm is taking steps to plug a worldwide pensions deficit which was estimated to be as large as $15.6bn at the end of last year.
The cash injection – announced at an investor conference in Michigan by Ford vice-chairman, Allan Gilmour – will particularly help boost the assets of Ford’s £2.4bn UK schemes, which make up a significant part of the company’s pension liabilities outside the US.
Ford announced in May that it was set to pay a total of $1.7bn into its pension schemes in addition to the $1bn it has already paid into its US schemes.
The move follows General Motors’ decision to issue a massive $17.6bn of bonds to help plug its US$25bn pension shortfall – and boost profits by between 25 and 45 cents per share in 2004.
One investment banker told IPN’s sister publication, Professional Pensions, that growing numbers of companies were set to take advantage of “favourable tax breaks and low interest rates” and issue bonds to help pay off some of their pensions liabilities.
But he said this might not suit UK firms, for one, as the tax breaks were not nearly as generous.
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TPT Retirement Solutions has launched a pension scheme for the education sector which offers schools both defined contribution (DC) and defined benefit (DB) pension provision.
The People's Pension has revealed plans to overhaul its charging structure, cutting fees and returning profits to members with an aim to help people save more money for retirement.
Data consultancy ITM has appointed Akash Rooprai as head of client management to lead its de-risking business.