Charlotte Moore looks at how the Covid-19 economic crisis will affect funding for schemes in differing amounts.
The Pensions Regulator’s (TPR) annual funding statement aims to keep up pressure on schemes but tries to avoid putting undue strain on employers at a time of crisis, the industry says.
The actuarial valuations of at least a quarter of UK defined benefit (DB) pension schemes are likely to have been “badly impacted” by coronavirus-related disruption to markets, says Aon.
The Pensions Regulator (TPR) must adopt a “pragmatic” approach to the 15% of UK schemes that have valuation dates within the next three weeks, Aon has said.
Almost all UK defined benefit (DB) schemes (92%) have set clear long-term funding targets, with most focused on buyout or self-sufficiency, according to Aon.
Panellists at an industry roundtable discuss their need for more clarity and balance from the regulator. James Phillips reports
Strong employers should consider contributing more money to reduce pension deficits over a shorter period of time, especially where they are paying out excessive shareholder dividends, the watchdog has said.