UK - The Pension Protection Fund is set to become one of the largest pension schemes in the UK in the next five years, Hymans Robertson warned.
The consultant said this could put its finances under severe strain and that action should be taken.
Head of corporate consulting Clive Fortes said: "We estimate that the PPF scheme could have £30bn of assets under management by 2015, rivaling the size of the BT pension scheme, the Royal Mail pension plan and the Universities Superannuation Scheme."
He added the PPF could easily grow more quickly if corporate failures continue at the current pace and if market conditions persist.
He said: "Given these projections, the PPF finds itself in a quandary because the benefits protection it offers to scheme members has, from the outset, been too generous. It would be wrong to let this all unravel, so there are two stark choices.
"The fairest would be for the PPF to be up-front and reduce to an affordable level the rate at which it pays benefits out. The other route is for the government to acknowledge the fundamental value of the PPF to the well-being of millions of pension scheme members by underwriting the PPF's commitments."
The PPF declined to comment.
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