Over 2019, market changes have resulted in an increase in the aggregate deficit - for many, this will push out the timescales to buyout. This highlights the importance of having in place a robust monitoring process to ensure opportunities are captured.
With the DB regulatory regime once again under review, the disparity between payments to shareholders and those paid to close pension scheme deficits will once more be under the spotlight.
After a number of difficult years, our 8th annual report on the pension provision of the FTSE350 shows that 2017 is hoping to be the turning point for the defined benefit (DB) pension schemes of the UK’s largest public companies.
It has been a turbulent few years and our 7th annual report on the pension provision of the FTSE350 shows that 2016 was a particularly volatile year for the defined benefit (DB) pension schemes of the UK’s largest public companies.
FTSE350 companies paid £8bn to reduce deficits in 2015, significantly lower than the levels seen post the financial crisis. As the UK experiences extreme uncertainty after the EU referendum, we question how long until contributions are forced to increase in order to plug the ballooning deficit.
The main focus of the 2015 PPF levy survey was the transition from Dun & Bradstreet to a bespoke insolvency risk model with Experian. The survey also considered areas such as the change to the contingent asset certification process, mortgage exclusions and the discount applied to Last Man Standing schemes.
This year’s report focuses upon many of the key metrics that we have monitored in previous years, as well as newer analyses such as how companies consider their pension risks within the context of the other business risks to which they are exposed.
Our third annual survey of private sector DB schemes in the UK with assets of over £1bn covers around 170 schemes and focuses on scheme type, asset allocation, investment performance, deficit contributions, and adviser fees.
The costs and risks associated with UK DB pension schemes are well known within the industry. Our reports analyse the contributions paid, levels of deficit and levels of risk within the schemes.