US - Close to US$14bn of contributions will need to be paid into the pension funds of General Motors and Chrysler within the next five years, according to estimates from the Government Accountability Office (GAO).
Both GM and Chrysler are expected to provide the capital if and when they return to profitability, but it is possible that the Pension Benefit Guaranty Corporation (PBGC) will have to foot the bill.
In a new report, GAO has calculated the projected contributions needed to comply with federal pension funding rules as being $5.9bn in 2013 and $6.4bn in 2014 at the GM pension fund alone.
GAO officials expect both automobile manufacturers to become profitable again, but warn that if this is not the case the PBGC will be "hit hard both financially and administratively".
In early 2009, prior to the bankruptcy sale of GM and Chrysler, PBGC estimated its exposure to potential losses for the companies' pension plans to be approximately $14.5bn.
PBGC is already expected to lose $6.2bn following the termination of pension funds associated with the largest US auto parts supplier Delphi Corporation in July 2009.
Last year saw a rise in the number of supplier bankruptcies, liquidations and pension plan terminations in the sector.
In January 2009, PBGC estimated that unfunded pension liabilities totalled about $77bn, with PBGC's exposure for potential losses due to unfunded benefits of about $42bn, leaving plan participants to bear the potential loss of $35bn through reduced benefits.
The report also warned that the Treasury's equity stakes in GM and Chrysler, acquired in exchange for assistance under the Troubled Asset Relief Program (TARP), "creates potential tensions with its role as pension regulator and overseer of PBGC in its role as pension insurer".
It said: "In particular, tensions could arise if decisions must be made between allocating funds to company assets (thereby protecting shareholders, including taxpayers) or to pension fund assets (thereby protecting plan participants)."
GAO added that better communication with Congress and other parties about TARP interests could help mitigate such tensions.
Royal London saw its new group pension business decline over the first half of 2018 as the rollout of auto-enrolment (AE) drew to a close, according to its interim results.
Now Pensions has made "huge progress" in resolving legacy administration issues - switching systems and completing unit adjustment for a "large proportion" of members, it says.
Trustees of the Airways Pension Scheme (APS) will not make a firm decision on whether to appeal the Court of Appeal's judgment on discretionary increase payments until September.
Accountant Hashmukh Shah has pleaded guilty to deliberately providing false information to The Pensions Regulator (TPR) when stating a pension scheme had been set up for staff of a London-based restaurant.