Corp UK faces ₤45bn demand from pension trusts
31 Oct 2008, AccountancyAge.com, AccountancyAge
http://www.accountancyage.com/aa/news/1759930/corp-uk-45bn-demand-pension-trusts
Aon, the pension consultancy, warned yesterday pension trustees are likely to demand £45bn a year from UK companies for the next five years, after research showed final-salary pension schemes faced a £225bn bill because plummeting asset prices were fuelling existing pension deficits.
The consultancy firm is forecasting 2009 will be the bleakest year yet for companies with shortfalls in their defined-benefit schemes. It urges the Pensions Regulator to relax until the economic turmoil is over, the rules which allow trustees to force companies to lift their contributions, to cover the deficits.
‘The last thing companies need at the moment is another cash call,’ Marcus Hurd, Aon head of corporate solutions, said.
‘Cash is the very thing everybody is in short supply of. Just as employers thought the economic news couldn't get any worse, they are likely to be hit by big bills to pay for their pension schemes. ’
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Visitor comments
financial turmoil impact on global economy
The financial crisis is spreading to all the sectors and the ultimate results will be available by the end of 2009. Anyway the crisis is very crusial to all western markets since its a prestigeous counter movement from these governments and it should show some good results by the mid of next year atleast. But in terms of asian countries, it is a good opportunity to find alternative solutions and reconfirm their best practices followed over the past years. Some of the basic causes of financial crisis is, bad credit loans processed by the financial institutions to the customers and third parties. But in case of growing markets, most of the banks are assuring the creditworthiness of their clients twice since most of the clients are not high profile clients. Hence this didn't make much impact on their financial systems and processed loan payment shedules.
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Posted by: koolbulb , 02 Nov 2008 | 00:00