Employers warned to keep eye on pensions
Employers failing to carry out a minimum funding requirement valuation of their pension schemes have been warned they could face neglect claims if a scheme collapses.
The warning came from city law firm Trowers & Hamlins.
They said the recent rally in the stockmarket may have lulled some companies into thinking that their schemes are healthier than they actually are.
Some could still have huge shortfalls to make up, warned Trower and Hamlins.
‘Unfortunately nothing in life is certain, least of all the stockmarket, which could take another knock at any time,’ said Jamie Atwell, a partner at the firm.
‘If by simply sticking their head in the sand and hoping for the best the employer makes the situation worse, or even fails to improve it, they will have no defence against claims from scheme members if the scheme folds.’
In September, Dresdner Kleinwort Wasserstein estimated the pension deficit of the FTSE 100 was £49bn.