UK: Pensions Advisers Thoughts Turn to Amicable Divorce

Last week, the accountants PricewaterhouseCoopers gave FTSE 350 companies a score of 75/100 for their efforts, and while that sounds pretty good, it was 88/100 in early 2007, before the recession began. PwC says the score, which tracks companies’ overall financial strength versus their pension obligations, should be more than 90 if UK plc is to get its pension bills “under control”.

Against this backdrop, those advising companies on their pension problems are beginning to think the unthinkable. Stefan Lundbergh of the pensions management firm Cardano wrote in these pages in May: “There’s a real danger that UK corporate defined-benefit pension schemes may have to cut their benefits to members.”

Leave a Reply