UK - Pensions software specialist Marlborough Stirling has been forced to issue a profit warning after an £80m outsourcing deal was delayed.
Implementation of the five-year business processing deal with Sun Life Financial of Canada has been put back six months.
Under the deal, Marlborough Stirling will assume responsibility for the administration of SLFC’s 800,000 closed book UK individual life and pension policies.
The delay means Marlborough Stirling will incur additional costs of £3m for both 2002 and 2003.
The company is now planning a restructuring and cost reduction programme, which is expected to involve job cuts.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.