asset-backed contributions

Jack Jones looks at the grey areas of ABCs

Jack Jones looks at The Pensions Regulator’s guidance to trustees on asset-backed contribution structures

Greencore has set up an asset-backed contribution structure (ABC) to fund a £40m deficit in one of its defined benefit (DB) schemes.

Kcom has spent £895,000 putting in place an asset-backed contribution structure (ABC) that will deliver £1.1m a year to its defined benefit scheme for the next 15 years.

Asset-backed contribution structures (ABCs) are increasingly being used to fund smaller deficits, according to research from Deloitte.

The Pensions Regulator (TPR) has urged trustees to examine asset-backed contribution structures (ABCs) carefully and explore "less risky alternatives" before entering into such an arrangement.

Taylor Wimpey has been given approval to merge its two principle defined benefit (DB) schemes and has set up a £100m partnership to plug their deficits.

Renold has merged its three defined benefit (DB) schemes and conducted a liability transfer exercise in a move to reduce its funding costs.

Asset-backed funding arrangements are a "house of cards" that could run counter to European law banning schemes from making employer-related investments, says a lawyer.

Asset-backed funding (ABF) arrangements are reaching new levels as the industry saw £700m worth of deals in the six months from September 2012, research from KPMG shows.