Half of defined benefit schemes will be closed to future accrual by the end of the year as quantitative easing increases costs, a consultant predicts.
The Bank of England's move to increase quantitative easing by £50bn will prolong low gilt yields for a further 12 months, adding further strains on pension funding positions, experts say.
With the price of complete buyouts becoming prohibitive for many trustees, Andrew Short looks at cheaper alternatives to shifting liabilities, and how they can be funded.
Funding positions have improved slightly this month as rising asset values offset increasing liabilities which were pushed out by record low discount rates.
Scrapping indexation could save defined benefit schemes billions of pounds but it would not see a mass move back to DB provision, experts have warned.
Aon Hewitt has been appointed actuarial advisers to German chemical firm Evonik's four UK pension schemes.
Mercer has recruited John Benfield as partner in its investment business from rival consultant Aon Hewitt.