Top companies to outsource pension schemes

Link: Watson Wyatt reveals FRS 17 pensions deficit

The companies have approached insurers such as Prudential and banks such as Goldman Sachs and BNP Paribas with a view to buy annuities from them, rather than provide the schemes themselves, according to the FT.

This move has been precipitated by the new pension accounting standard, which forces companies to account for the value of their pension funds on their balance sheets.

A recent survey by actuaries Watson Wyatt found that UK corporate pension deficits now stand at £70bn as a result on the rule.

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