UK - Uncertainty surrounding a hung parliament will have a negative effect on scheme investments but could help reduce liabilities, independent consultant Ros Altmann said.
Altmann (pictured) said a hung parliament would force asset prices lower.
But she added that, despite falling asset prices, rising gilt yields were positive for schemes as they would help reduce liabilities, as bond yields are used to calculate scheme valuations.
However, she also said schemes would also be affected by changes in the equity markets.
She said the markets were in "never never" land before the election.
Altmann explained that, despite polls indicating a hung parliament, the market had priced-in a small Tory victory - a victory which clearly has not taken place.
She said: "The focus on sterling will be next. Gilt yields are far too low. We've got a massive budget deficit, but there is the potential the government, maybe even via Solvency II, will put pension funds and insurers in a position where they actually have to buy more gilts."
She added: "My prediction is sterling will fall and high quality corporate bonds will perhaps end up yielding less than gilts, because the credit rating of strong multi-national companies is probably better than that of a weak UK government."
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.