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.
Proposed changes to The Pensions Regulator's (TPR) notifiable events framework so it can be more proactive when corporates make changes will create a very challenging workload, it has been said.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.