Sainsbury In Talks To Sell Final Salary Pension Scheme
In line with many other companies with final salary schemes it has been reported that Sainsbury has requested a number of quotes from pension fund specialists looking to acquire the company’s final salary scheme. While no figures have been mentioned the fund itself is fairly large at £2 billion, but proving to be something of a drag on Sainsbury finances.
The ongoing confusion as to the level of funding required to fully fund the scheme has seen the group look to jettison the scheme to a third party and relieve the group of all future liabilities. The pension fund was seen as a major stumbling block in the recent £10 billion QIA takeover offer which eventually floundered. Whether this proposed change in the company’s pension fund arrangements will bring the QIA back to the table remains to be seen.
Slowly the UK final salary pension fund sector is becoming dominated by small group of professional pension administration companies. They are able to cut costs to the bone and give the scheme the best chance of approaching a fully funded situation as soon as possible. However, in line with pension law, Sainsbury will not be able to sell the fund without the agreement of the pension fund trustees who are there to protect the benefits of the scheme members.
Share this..
Related stories
Have you completed your self-assessment tax return?
As we approach the final date for submitting self-assessment tax returns, i.e. 31 January, the next 48 hours will prove vital for many people in the UK. Despite the fact that paper tax returns were being accepted up until late 2009 more and more people are looking towards the Internet to simplify their tax returns. However, it does seem as though more and more people are leaving this until the las...
Read MoreHargreaves Lansdown forecasts pensions 'car crash'
The pensions sector is heading for a "car crash" - with an income of just £1,380 a year currently being derived from the average pot.Independent Financial Advisor (IFA) Hargreaves Lansdown made the finding in new analysis released yesterday, which also showed that the number of people paying in to plans had dropped from eight million to seven million over the past year.This is thought to be becau...
Read MoreCoalition government backtracks on death tax
The UK government today stands accused of backtracking on an election pledge to resist the temptation of a so-called "death tax" to cover the cost of care in the later years of life. We all remember the very prominent and controversial election campaign which ridiculed and demonised Gordon Brown's idea of a death tax although remarkably the Health Secretary has implemented a review of the health c...
Read MoreUK motor insurance premiums increase yet again
The AA insurance has today commented upon the state of the UK motor insurance market with a suggestion that the average comprehensive motor insurance policy is now costing in excess of £1000 a year. This is an increase of around 20% on the 2008 figure and is predominantly because of fraudulent claims and the damage caused by uninsured drivers in the UK. All in all it is believed that UK motori...
Read MoreRBS in renewed talks to sell stake in insurance division
After the swings and roundabouts of the last few days it has now been revealed that not only will Royal Bank of Scotland (RBS) be receiving a massive cash injection from the government, but it is still in talks to sell off a stake in its insurance operation. Renewed talk in the markets is suggesting the RBS is on the verge of selling a 51% stake in the business (which includes the likes of Church...
Read More