Funds use excess returns to cut down contributions

clock • 1 min read

Schemes are using investment outperformance to cut employer contributions by as much as 30% over the next decade, as low discount rates continue to inflate liabilities.

The Pensions Regulator's annual funding statement in April ruled out allowing schemes to make an allowance for low gilt yields and the effect of quantitative easing when setting discount rates - bu...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

Partner Insight: Mind the underinvestment gap - Shaping the UK's future through private markets investment

Partner Insight: Mind the underinvestment gap - Shaping the UK's future through private markets investment

With significant underinvestment placing pressure on the UK’s social infrastructure, M&G Investments highlights how institutional capital can drive regeneration and unlock long term social and economic benefits.

M&G Investments
clock 18 February 2026 • 7 min read
Border to Coast makes £70m foray into single-family housing

Border to Coast makes £70m foray into single-family housing

‘Landmark’ deal sees LGPS pool fund 139 homes at Springstead Village in Cambridge

Jonathan Stapleton
clock 09 February 2026 • 2 min read
Partner Insight: Democracy and the rule of law is the defining ESG issue of the year

Partner Insight: Democracy and the rule of law is the defining ESG issue of the year

For the past several years, climate has dominated ESG agendas. Rightly so in our view, given that its physical and transition risks are reshaping portfolios and policy alike. But in 2026, one issue has returned to the forefront with unmistakable urgency:...

Ashley Hamilton Claxton, Head of Responsible Investment at Royal London Asset Management
clock 09 February 2026 • 2 min read
Trustpilot