DB schemes make gains in Q3 but covenant concerns remain

Stephanie Baxter
clock • 2 min read

Defined benefit (DB) pension schemes almost recovered to pre-coronavirus levels in the third quarter after strong performance of growth assets and a rise in nominal interest rates.

Legal & General Investment Management's (LGIM) analysis found the average DB fund can expect to pay 95.5% of accrued pension benefits as of the end of September, up 2% from the end of June. At the ...

To continue reading this article...

Join Professional Pensions

  • Unlimited access to real-time news, analysis and opinion from the industry
  • Receive our in-depth monthly magazine in either print or digital format
  • Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
  • Receive important and breaking news stories selected by the Editors in our daily newsletter
  • Hear from industry experts and other forward-thinking leaders
  • Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date

Join now

 

Already a Professional Pensions member?

Login

More on Defined Benefit

TPR senior adviser Fred Berry says the funding code is ‘all about principles and applications’

Concern over consistency between DB funding code and regulations

Implementation of the code will involve ‘tightening of the herd’ and reducing ‘outliers’

Holly Roach
clock 08 June 2023 • 3 min read
Steve Hitchiner: It is difficult for open DB schemes to thrive under the current regulatory framework

SPP: Why did DB decline and how to treat scheme surpluses

Steve Hitchiner says the WPC’s inquiry into DB schemes poses a number of questions to consider

Steve Hitchiner
clock 07 June 2023 • 3 min read
Azima Crumpton, Investment Consultant, Aon

Industry Voice: Buyout and illiquid assets - are you a pessimist, an optimist, or a realist?

Azima Crumpton, Investment Consultant, Aon
clock 07 June 2023 • 4 min read
Trustpilot