Aon warning over pensions
The UK's 200 largest privately-sponsored pension plans have large shortfalls, according to Aon Consulting.Some 64 per cent of the schemes are in deficit, the firm revealed, with the Aon200 Index showing that the plans' funding deficit reached £15 billion at the end of October - a fall of £9 billion.The economic downturn and reduction in stock market values were blamed for the lack of contributions from companies.However, these firms may now be asked by the trustees of the plans to cover the deficit in the next few years."Just as employers thought the economic news couldn't get any worse, they are likely to be hit by more big bills to pay for their pension schemes when they can least afford it," said Marcus Hurd, head of corporate solutions at Aon."If all final salary pension schemes were assessed for financial adequacy right now, then it is likely that contributions would soar by an additional £45billion a year for the next five years."
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