Top companies to outsource pension schemes
A number of companies in the FTSE 250 are looking at transferring their pension schemes to insurance companies and investment banks to reduce the impact of FRS 17 on their balance sheets.
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.